Ranked: Government Debt Across Major Economies

Ranked: Government Debt Across Major Economies

The government debt-to-GDP ratio is a key indicator of a country’s financial health. It provides insight into the government’s capacity to manage its debt, shapes fiscal policy flexibility, and plays a crucial role in influencing investor confidence.

This graphic, created in partnership with the Hinrich Foundation, shows public debt as a percentage of GDP across 30 major economies. Data is from the IMF’s World Economic Outlook.

The analysis comes from the 2024 Sustainable Trade Index (STI), which the Hinrich Foundation produced in collaboration with the IMD World Competitiveness Center.

Data Overview

To create the STI’s public debt metric, government debt-to-GDP ratios from the IMF were converted into a numerical index score. The scores were then averaged for each economy, creating a range of 0 to 100. 

Rank	Economy	Government debt-to-GDP (%)
1	🇧🇳 Brunei	2.3
2	🇭🇰 Hong Kong	6.5
3	🇷🇺 Russia	19.7
4	🇹🇼 Taiwan	25.0
5	🇰🇭 Cambodia	25.9
6	🇵🇪 Peru	32.1
7	🇻🇳 Vietnam	34.0
8	🇨🇱 Chile	39.4
9	🇧🇩 Bangladesh	39.8
10	🇮🇩 Indonesia	39.9
11	🇳🇿 New Zealand	45.9
12	🇦🇺 Australia	49.4
13	🇵🇬 Papua New Guinea	52.1
14	🇲🇽 Mexico	53.1
15	🇪🇨 Ecuador	54.7
16	🇰🇷 South Korea	55.2
17	🇵🇭 Philippines	56.6
18	🇲🇲 Myanmar	59.3
19	🇹🇭 Thailand	62.4
20	🇲🇾 Malaysia	67.3
21	🇵🇰 Pakistan	77.1
22	🇮🇳 India	82.8
23	🇨🇳 China	83.6
24	🇬🇧 United Kingdom	101.1
25	🇨🇦 Canada	107.1
26	🇱🇰 Sri Lanka	115.5
27	🇺🇸 United States	122.2
28	🇱🇦 Laos	122.8
29	🇸🇬 Singapore	162.1
30	🇯🇵 Japan	252.4

A relatively low ratio of public debt-to-GDP, such as for Brunei, translated into a high (and favorable) STI government debt score. Conversely, a relatively high public debt ratio, such as for Japan, translated into a low (and thus unfavorable) STI government debt score.

Public debt ratios can provide important context to understand a country’s ability to meet its financial obligations. A high ratio can also affect investor confidence, undermine economic stability, and constrict economic growth. Furthermore, fiscal policy options may be constrained.

It’s also important to note that high-level debt ratios can mask important dynamics that lie beneath the surface. For example, China’s federal government debt score is quite favorable. However, the country’s elevated levels of local debt—which are not captured in this metric—undercut its financial stability. 

Explore the Sustainable Trade Index

This infographic was just a small subset of what the Sustainable Trade Index has to offer. To learn more, visit the Hinrich Foundation, where you can download additional resources including the entire report for free.