Now that we are in 2026, the most complete global debt data available covers the final quarter of 2025. While newer numbers will emerge later this year, the latest full comparison between countries reflects where things stood at the end of 2025.
One of the most important measures economists use is the debt to GDP ratio. This compares a country’s total debt to the size of its economy. The total includes government borrowing, corporate debt, and household liabilities.
If a country has a debt to GDP ratio above 100 percent, it means its total debt is larger than its entire annual economic output.
📊 The Most Indebted Countries at the End of 2025
Here were the 10 most indebted countries and territories based on total debt relative to GDP:
- Hong Kong – 380 percent
- Japan – 372 percent
- Singapore – 347 percent
- France – 326 percent
- Canada – 315 percent
- China – 298 percent
- United States – 264 percent
- South Korea – 249 percent
- Italy – 236 percent
- Malaysia – 224 percent
These figures combine borrowing across governments, businesses, and households to give a full picture of overall leverage in each economy.
🏙 Why Were These Countries So High?
Hong Kong
Hong Kong ranked first at the end of 2025. Much of its debt came from corporate borrowing, particularly in property and finance. As a major global financial hub, high credit activity pushes up total debt levels relative to GDP.
Japan
Japan continued to carry one of the highest public debt burdens in the world. Years of stimulus spending, slow growth, and demographic challenges contributed to its elevated position.
Singapore
Singapore’s large financial sector and strong corporate borrowing helped place it near the top of the rankings. Like Hong Kong, it has a highly developed credit market.
🌎 Major Economies Under Pressure
Several large developed economies also appeared high on the list.
France and Canada both exceeded 300 percent of GDP in total debt. The United States stood at 264 percent, reflecting significant government deficits combined with household and corporate borrowing.
China approached 300 percent, driven largely by corporate and local government borrowing, particularly in infrastructure and real estate sectors.
📉 What This Meant Heading Into 2026
High debt levels do not automatically mean crisis. Debt can support growth, infrastructure, and development. However, large debt burdens increase vulnerability when interest rates rise or economic growth slows.
Countries entering 2026 with elevated debt levels may face:
- Higher interest payments
- Reduced flexibility during economic downturns
- Greater exposure to financial instability
As 2026 unfolds, the focus will be on how governments manage borrowing, especially in a global environment shaped by shifting monetary policy and uneven growth.
Looking back at the end of 2025, the global economy remained heavily leveraged. Financial hubs like Hong Kong and Singapore led the rankings, while major economies such as Japan, the United States, and China carried substantial debt loads of their own.
The key issue moving forward into 2026 is not just how much debt countries have, but how sustainably they can manage it.
