When it comes to maintaining a healthy balance, the countries with the largest debt in the world seem to be doing almost everything wrong. However, despite the fact that most people would agree with this statement, the countries in question do not seem very concerned about their financial situation. The reason for this can be reduced to a very simple factor, countries cannot be forced to pay their debts. Of course, there are always consequences for not meeting debt obligations, but these are far more drastic for companies and families than for sovereign states. In addition to being able to resist repression and seizure of wealth, governments can raise additional funds by raising taxes.. Companies must then find a way to drive sales, which means they have no reliable source of income in the event of an emergency. Thus, if countries with the highest debt are always on the verge of defaulting, they can always turn to their citizens for help. That is why states are much more protected from their creditors than companies, but they also have very unique tools at their disposal. Then the question arises of what leads these nations to assume such debt burdens. Considering that most states try to implement as many policies as possible, it is not surprising that money is generally scarce. Therefore, it is not only difficult but also reckless to finance large infrastructure projects without incurring debt. So the 10 countries with the biggest debt are not necessarily irresponsible, but actually very smart when it comes to doing business. While it seems that these nations could certainly benefit from reading some of the best finance blogs, their economic progress suggests otherwise. And contrary to popular belief, debt and poverty are not linked, that is, advanced economies can and are part of the selection of countries with the largest external debts. Source: localbusinessexplorer.com
10. SPAIN – $ 2.3 TRILLION
It is no secret that Spain has been dealing with a very complex economic situation over the last few years. And as it was one of the countries most affected by the 2008 financial crisis, extracting additional resources from the population has been difficult.
9. NETHERLANDS – $ 2.52 TRILLION
Despite the fact that the Netherlands is one of the most advanced countries in the world, it does not seem to get rid of debt obligations, which currently make up a whopping 344% of GDP.
8. ITALY – $ 2.65 TRILLION And like Spain, Italy also had a very difficult recession when the market collapsed in 2008, and the European Union felt the effects of the crisis. Too many expenses and without enough reserves do not make up a recipe for success.
7. JAPAN – $ 2.86 TRILLION
At this point it should be made clear that countries can continue to make progress despite the fact that they owe trillions of dollars. Japanese foreign debt is large, but only represents 60% of GDP.
6. CHINA – $ 3 TRILLION
And by the increase in government spending over the past few years, China’s debt has been steadily rising. However, as the world’s largest lender, the country has little to worry about having to make payments on time. From this list, China has the greatest potential to turn the tables and become lenders in the coming years.
5. LUXEMBOURG – $ 3.47 TRILLION
It may be surprising to see such a small action in this selection, however, it is quite natural for Luxembourg for its huge financial sector. Money may come and go, but at the end of the day, this small European state is a net lender.
4. GERMANY – $ 5.54 TRILLION
Not only does Germany have an advanced economy, but it is still the most important member of the European Union. Despite preaching about tax liability, their debt obligations make Spain and Italy look like little potatoes.
3. FRANCE – $ 5.75 TRILLION
France may not have been able to beat Germany when it comes to economic power, but it has exceeded its neighbor’s debt level by a small margin. Once again, having debt seems more like an economic strategy rather than a desperate measure. The investments made have a long-term effect.
2. UNITED KINGDOM – $ 9.59 TRILLION
Despite the fact that everything seems to be in order, the UK level of debt is becoming a major concern. Not only is debt very large in absolute terms, but the proportion of debt has reached 406% of GDP.
1. UNITED STATES – $ 17.75 TRILLION
The United States is the leading position in the selection of the 10 most indebted countries in the world. What may come as a surprise is a well known fact, the most powerful economy in the world also has the biggest debt. And following the 2008 financial crisis, the government was only able to make ends meet by raising the debt ceiling, meaning the situation was virtually out of hand.