Key Points
- Global public debt projected to equal world GDP by 2030 according to IMF forecasts
- Japan tops the list with debt reaching 246% of GDP, totaling $1,080.1 billion
- Sudan faces 221.5% debt-to-GDP ratio amid ongoing conflict and political turmoil
- Eight developed and developing nations struggle with debt exceeding 100% of GDP
- United States carries debt burden of 125% of its massive $275.5 trillion economy
- Oil price volatility and aging populations emerge as major debt drivers
- Tourism-dependent economies like Maldives vulnerable to external shocks
The world economy is navigating through turbulent waters in 2025, facing mounting fiscal pressures that threaten economic stability across continents. The latest comprehensive report from the International Monetary Fund (IMF) paints a concerning picture, indicating that global government debt is steadily climbing at an alarming rate, and this financial threat could intensify dramatically in the coming years. According to the IMF forecasts, by 2030, the world aggregate public debt could reach nearly the equivalent size of global GDP, a development that represents a matter of grave concern for economists, policymakers, and financial markets worldwide.
In this groundbreaking report, the IMF has released a detailed ranking of countries carrying the highest debt burdens relative to their economic capacity, measured through the critical debt-to-GDP ratio metric. This ratio serves as a vital indicator of how heavy a country debt burden weighs compared to its total economic output and productive capacity.
Japan Leads World with Staggering 246% Debt-to-GDP Ratio
Japan claims the unenviable first position in the IMF global debt rankings, despite being one of the world most technologically advanced and developed economies. The island nation debt burden has escalated so dramatically that it has reached nearly two and a half times its annual GDP, standing at a staggering 246 percent of economic output with total debt amounting to $1,080.1 billion. Japan rapidly aging population, which represents one of the oldest demographics globally, combined with exponentially rising healthcare and pension expenditures, and persistently slow economic growth rates over the past three decades are considered the primary factors driving this precarious fiscal situation. The country faces the demographic challenge of a shrinking workforce supporting an expanding elderly population, creating unprecedented fiscal pressures on government resources and social security systems.
Sudan Drowns in Debt Amid Political Chaos
Sudan occupies the second position on the global debt crisis list, grappling with a severe financial catastrophe fueled by prolonged internal conflict, deep-rooted political instability, and a fundamentally broken institutional system. The Northeast African nation government debt burden has surged rapidly over recent years, propelling it into the ranks of the world most heavily indebted countries with debt reaching 221.5 percent of GDP. The ongoing civil strife, coupled with international sanctions, collapsed infrastructure, and disrupted agricultural production, has decimated revenue generation capabilities while simultaneously forcing the government to maintain emergency spending levels. The humanitarian crisis has further compounded fiscal challenges, making debt servicing nearly impossible and economic recovery a distant prospect.
Singapore, Prosperous Yet Highly Leveraged Nation
Singapore, ranked third globally, presents a unique paradox in the debt crisis narrative as it maintains robust economic fundamentals despite carrying substantial debt. This Southeast Asian financial hub is economically strong and politically stable, yet its debt-to-GDP ratio stands at an impressive 175.6 percent. However, the nature of Singapore’s debt differs fundamentally from distressed economies, as a substantial portion is strategically tied.
Here is a comprehensive table of the top 10 most indebted countries worldwide based on IMF data:
Global Debt Crisis Rankings: Top 10 Countries by Debt-to-GDP Ratio
| Rank | Country | Debt-to-GDP Ratio | Total Debt/Economy Size | Primary Challenges |
|---|---|---|---|---|
| 1 | Japan | 246% | $1,080.1 billion | Aging population, rising healthcare costs, slow economic growth |
| 2 | Sudan | 221.5% | Not specified | Ongoing conflict, political instability, broken institutional systems |
| 3 | Singapore | 175.6% | Not specified | Debt tied to long-term investment projects and bonds |
| 4 | Greece | 147.7% | Not specified | Chronic recession effects since 2010, spending-growth imbalance |
| 5 | Bahrain | 142.5% | Not specified | Declining oil revenues, weakened financial health |
| 6 | Italy | 136.8% | ₹218 lakh crore economy | Slow growth, employment challenges, industrial investment issues |
| 7 | Maldives | 131.8% | Not specified | Tourism decline, external borrowing for development projects |
| 8 | United States | 125% | $275.5 trillion economy | Government spending, political differences, concern for global economy |
| 9 | Senegal | 122.9% | Not specified | Large-scale development projects, external borrowing weakening economic health |
| 10 | France | 116% | $290 trillion economy | High public expenditure on health/social security, slow growth |
Key Observations from the Data
- Six nations exceed 130% debt-to-GDP ratio, indicating severe fiscal stress
- Developed economies dominate the list, with Japan, Singapore, Italy, US, and France representing 50% of top 10
- Oil-dependent economies like Bahrain show vulnerability to global commodity price fluctuations
- Tourism-based economies such as Maldives face heightened risk during global downturns
- Conflict-affected nations like Sudan experience debt spiral due to institutional breakdown
