World’s Most Indebted Nations: Global public debt continues to swell in 2025, with the International Monetary Fund (IMF) warning that the world’s borrowing burden is edging closer to pre-pandemic peaks. The IMF’s October 2025 update shows that total government debt worldwide now equals 94.7 percent of global GDP, up from 92.4 percent recorded a year earlier.
The numbers suggest a return to heavy fiscal spending and slower economic recovery across both advanced and emerging economies. According to IMF projections, the global debt-to-GDP ratio, which had reached 98.9 percent in 2020 during the COVID-19 crisis, could climb past 102 percent by 2030 if current trends continue.
At the top of the list stands Japan, with a debt level of 229.6 percent of GDP – the highest in the world. Decades of fiscal deficits and an ageing population have kept Japan’s government finances under pressure.
Just below Japan is Sudan, where years of instability and sanctions have left the nation with a debt load of 221.5 percent of GDP. With 175.6 percent, Singapore comes third, reflecting its unique fiscal model that uses government borrowing mainly to fund domestic investment through sovereign wealth funds rather than to finance deficits.
The next set of economies includes Greece (146.7 percent), Bahrain (142.5 percent), Italy (136.8 percent) and the Maldives (131.8 percent), all of which face persistent budget pressures linked to external borrowing and slow growth.
The United States appears at number eight, with a debt ratio of 125 percent of GDP. Despite steady economic growth, high spending on defense and social programmes continues to widen its fiscal gap. Senegal follows with 122.9 percent, and France closes the top 10 with 116.5 percent.
Outside the top group, two major Asian economies show more moderate figures. China’s debt-to-GDP ratio stands at 96.3 percent, placing it at rank 21, while India’s debt is estimated at 81.4 percent, ranked 35th globally. Both remain below the global average but above most developing countries.
Economists say the overall pattern highlights a world increasingly dependent on borrowing to maintain growth. For advanced economies, debt often reflects high social spending and long-term infrastructure commitments, while for developing nations, it reveals the rising cost of imports, weak revenue collection and external shocks.
The IMF highlights that if fiscal consolidation measures remain slow, interest costs could consume a larger share of national budgets, especially as global interest rates stay elevated.
For Asia, the presence of both Japan and Singapore among the top debt-laden countries highlights how structural and strategic borrowing differ sharply across the region, one driven by demographic challenges and the other by investment-led financing.
As of late 2025, the global debt map paints a picture of widening fiscal gaps and growing dependence on government borrowing. For India, China and other emerging economies, the challenge now lies not in avoiding debt altogether, but in managing it efficiently to sustain growth without letting the burden spiral out of control.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
