According to the IMF (International Monetary Fund) the top 10 states with the largest public debt would be the following
- United States: 18.237 billion – 103.184% (Debt/GDP) -2017
- Japan: 10.557 billion – 236.388%
- Italy: 2.407 billion – 131.454%
- UK: 2.345 billion – 87.029%
- France: 2.173 billion – 96.956%
- China : 1.684 billion – 65.680%
- Germany : 1.544 billion – 64.137%
- Holland : 475 billion – 56.658%
- Belgium: 435 billion – 102.184%
- Austria: 305 billion – 78.833%
To understand how much it represents a problem for the country its debt divides its GDP for its debit. Generally when this percentage exceeds 100% it starts to be a big problem and here you are the top 16 of the states with the highest debt/GDP.
(debt as a percentage of GDP)
With a debt / GDP of 236% Japan is the state with the highest debt and in any case it is preparing to bring the deficit/ GDP to 10%. The fact is that Japan has 2 advantages over many other states: 1)it has its own currency and can therefore allow itself to have more money printed by the Bank of Japan. 2) Almost all of the public debt is held by Japanese citizens and interior investors.
The economic crisis of Greece ufficialy started in the autumn of 2009 when it found itself on the edge of the collapse. Furthermore the ratings agency Fitch had almost for sure its default and had it not been for important cuts in spending and aid from the EU probably Greece would have made the end of Argentina, default. However, the debt is still very high today and the economy has stopped going down and it is growing slowly so it is now up to the government to get the Greek economy going for the better in the future.
Despite to the great downhill of the debt, that goes from 185.19% in 2006 to 132.4% in 2017. It is too high this debt for a state whose economy is not solid and stable.
The archipel country rescue to give a strong cut to the debt whichriwent from 185.19% in 2006 to 133,8% in 2017 to the huge amount of debt accumulated. Because of this debt creations, the national’s economy rescue to have a rapid increse. As a result, from 2000 to 2008 the GDP has risen by 332% in just 7 years. GDP. Due to the global crisis of 2008. Therefore it is still too high a debt for a state whose economy is not very solid and stable for a country where the 40% percent of the population lives with less of $2 and an economy mainly tourist and fishing
Italy – 131.4%
In the last decades, Italy saw a huge increase in its public debt. For example, when in 2005 the rapport of the GDP/debt was 105.8%, in just 12 years it explode to 131.2% in 2017. Consequently, the EU has always expressed preocupations about it’s high debt. Hence, with the proposal from the Italian’s governament to bring the deficit / GDP for 2019 to 2.4%, far from the 0.9% expected e declared by the last government. But if you look it would also be relatively low compared to other years od deficit:
2014 – 3.0%
2015 – 2.6%
2016 – 2.5%
2017 – 2.4%
2018 – 2.0%
2019 – perhaps 2.4%
- Capital Lisbona Although Portugal fell into recession and received aid from the EU and the IMF it is still recovering but seems like Portugal is growing and
recovering the gap with already other states, also focusing a lot on renewable energy. In contrast with the fragile Greek economy.
This small African state rescue to reduce the debt from 140.6% in 2006 to 116,1% in 2017 in just 9 years. Certainly this is good achivement but is still not enough for a state of microscopic dimension like Gambia and with an economy which is the opposite strong and costant.
A huge number of aid from the MFI and other 14 major donors to the Mozambican government were removed after it was discovered that Mozambico hidden 1 billion of debt in it’s balance. Hence this is not a great moment for the economy of Mozambico, too for the fall of the GDP that is being recorded in recent years.
Giamaica – 115,2%
This beautiful island, Jamaica has seen a decline from 117.12% in 2006 to 115,2% in 2017.
This city-state has seen its debt increase since 2006 when it had 85.1% up to 2017 with 112%.
This state has seen its debt grow not little since 2006 when it was at 82.4% until 2017 with 110,2%.
Cipro – 108%
Cyprus has seen an impenazione of its own debt, in 2006 it had a debt / GDP equal to 59.6% and instead in 2017 it was peer to 108%. due to the fact that in 2013-2014 They asked for a 10 billion euro rescue package of AID to the EU.
Stati Uniti: 103.1%
US debt hit the record $ 21.21 trillion at the end of June and still continues to grow. Due to the past expansive policies, furthermore, after the fiscal reform by Donald Trump, the Federal Reserve System expressed its concern about the sustainability of the debt in the future. Due to the fact that just 70% of the US debt is owned by domestic investors and the remaining 30% by foreign investors (here the top 9):
1) China 5.6%
2) Japan 4.9%
4) Ireland 1.4%
5) United Kingdom1.3%
6) Switzerland 1.1%
7) Luxembourg 1%
8) Cayman Islands 0.9%
9) Hong Kong 0.9%
The Belgium method that rescue to drastically reduce its debt from130.5% in 1995 to 102.184% in 2017 is still study from many people, economist, associations and universities. Hence, some of these methods are:
–Spending review in the public administration and in the defense
–Setting the taxation from work to consumption
– Advance primary around 5-5.5%
– Sale of public assets such as gold held by the Belgian Central Bank.
Mauritania – 99,6%
This West African state has a very critical economy, with around 45% of the population living on less than 2 US dollars a day (similair to Capo Verde, 40%).
Furthermore its debt has had a peak when in 2000 when the deficit / GDP ratio was to 234.4% and then has slipped to quota 2006 when it present a 71.3%. Consequently, has risen not with the same speed with which it is reduced to the percentage of 99,6% in 2017
It was also noted that one of the reasons for the increase in debt could be caused by the 30% drop in the price of iron ore representing 50% of the country’s exports.
Spain – 99.3%
The Spanish economy is not the best in the EU. This can be understood just by looking at the unemployment rate that in February 2018 was at 16.1% and a strong corruption still persists within the Iberian Peninsula.
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