Ranked: Countries With the Most Government Debt in 2025
Introduction
In 2025, global government debt continues to climb, driven by pandemic-era spending, demographic pressures, and geopolitical uncertainties. According to recent data from the International Monetary Fund (IMF) and other sources, several countries now carry government debt that exceeds 100% of GDP, while the largest economies account for the lion’s share of total global debt. (Visual Capitalist)
In this post we’ll look at:
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The countries with the most government debt in absolute terms in 2025
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The countries with the highest debt-to-GDP ratios in 2025
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The implications of high government debt for economies
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What to watch in the coming years
Countries with the Highest Government Debt (Absolute Terms)
Here are some of the top countries by government debt (general government gross debt) in dollar terms for 2025:
| Rank | Country | Approx. Debt (USD) |
|---|---|---|
| 1 | United States | ~$38.3 trillion (Visual Capitalist) |
| 2 | China | ~$18.7 trillion (Visual Capitalist) |
| 3 | Japan | ~$9.83 trillion (Visual Capitalist) |
| 4 | United Kingdom | ~$4.09 trillion (Visual Capitalist) |
| 5 | France | ~$3.92 trillion (Visual Capitalist) |
These five countries alone account for a very large share of global government debt — together they make up roughly two-thirds of the world’s total. (Visual Capitalist)
Countries with the Highest Debt-to-GDP Ratios
Absolute debt is one measure — but how large the debt is relative to the size of the economy (GDP) is a critical indicator of fiscal sustainability. Here are the nations with the highest debt-to-GDP ratios in 2025:
| Rank | Country | Debt to GDP (%) |
|---|---|---|
| 1 | Sudan | ~252% (The Indian Express) |
| 2 | Japan | ~234.9% (The Indian Express) |
| 3 | Singapore | ~174.9% (adda247) |
| 4 | Greece | ~142.2% (adda247) |
| 5 | Bahrain | ~141.4% (adda247) |
These figures reflect both structural fiscal challenges and external pressures (e.g., low growth, ageing populations, large welfare burdens) in many countries.
Why Government Debt Matters
1) Interest-burden & fiscal flexibility
When debt is large, a significant portion of a government’s revenue must go towards servicing interest and principal payments. That reduces flexibility to spend on education, infrastructure, healthcare, and other growth-enhancing items.
2) Vulnerability to shocks
Countries with high debt (especially relative to GDP) have less room to respond to economic shocks (e.g., global downturns, commodity price shocks) without risk of destabilising their public finances.
3) Confidence & borrowing costs
High debt levels can erode investor confidence, raising borrowing costs and potentially triggering a fiscal-crisis spiral if markets doubt a country’s ability to repay.
4) Intergenerational impact
Heavy borrowing today may shift the burden to future taxpayers and reduce the ability of future governments to meet citizens’ needs.
Key Takeaways & Things to Watch
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The top 3 (U.S., China, Japan) hold the bulk of global government debt in dollar terms.
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Some smaller economies carry very high debt-to-GDP ratios — signalling elevated risk even if their absolute debt is smaller.
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Global average government debt is rising: one estimate places the global government debt ratio at ~94.7% of GDP in 2025. (Visual Capitalist)
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Watch for:
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Changes in interest rates (higher rates make debt servicing more costly)
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Economic growth (slower growth makes debt burdens heavier)
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Fiscal reforms (tax increases, spending cuts, structural reforms)
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External factors (global supply-chain disruption, geopolitical conflicts, climate costs)
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Conclusion
Government debt is a major variable in the long-term economic health of nations. While debt isn’t inherently bad (it can finance growth, infrastructure, and development), it becomes problematic when growth stagnates, interest costs rise, or debt levels become unsustainable relative to the economy.
In 2025, the data show a mixed picture: major economies carry huge absolute debts, and several countries face daunting debt-to-GDP ratios. For policy-makers, the challenge is balancing growth with fiscal sustainability. For analysts and citizens, understanding the debt dynamics is key to gauging future risks and opportunities.
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