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The 3 Most Indebted Countries in the World; Brazil on the List!

Do you know which countries have the highest public debts in 2024? The debt/GDP ratio is the metric that compares a country's public debt with its Gross Domestic Product (GDP).

By comparing what a nation owes with what it produces, the debt/GDP ratio shows a country's ability to pay its debts. Countries with similar debt/GDP ratios are ranked based on their PPP GDP.

The PPP GDP (Purchasing Power Parity) adjusts a country's economic output taking into account differences in the cost of living and purchasing power.

1. Japan

Debt/GDP ratio (2024): 251.9

GDP (PPP): US$ 6.71 trillion

The aging population has harmed public finances, exacerbating the burden of Japan's public debt. The country has the lowest labor productivity in the G7.

2. Sudan

Debt/GDP ratio (2024): 238.8

GDP (PPP): US$ 177.09 billion

The risk of public over-indebtedness for Sudan is assessed as high. The risks arising from high levels of public debt are exacerbated by slow GDP growth, worsened by a very low tax/GDP ratio.

3. Singapore

Debt/GDP ratio (2024): 168.3

GDP (PPP): US$ 786.87 billion

Despite the high level of gross national debt held by Singapore, the picture is different when looking at the country's net debt. In fact, Singapore's government assets exceed its debts, resulting in a net debt/GDP ratio of 0%.

25. Brazil

Debt/GDP ratio (2024): 90.3

GDP (PPP): US$ 4.26 trillion

Brazil's high national debt is due to the country's trade deficit. However, it is estimated that by 2030 Brazil will have the fourth largest gross domestic product in the world. But what is most surprising is that there are several global powers that are more indebted than our country in this ranking. That is, in this Top 30, Brazil is one of the countries with the lowest debt relative to GDP.

Sources: Yahoo Finance

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