Six of the world's nine strongest economies are among the 30 countries whose total public debt exceeds their gross domestic product, with Japan topping the rankings.
"Moi Negotius e Economia" magazine reported Spanish that the first measures taken by most western countries to alleviate the deep economic and financial crisis facing them, is the issuance of public debt.
After years of sudden increase in the proportion of public debt, some changes occurred between the global trend between 2014 and 2016, and the obligations that countries made with their creditors declined at a slow pace compared to GDP.
After the 2008 crisis, it was not just the poor countries that needed financing that exceeded their production capabilities, as the best example of which is Japan, which owes 237% of its GDP, according to the International Monetary Fund.
The International Monetary Fund has data from 2017 belonging to more than 180 countries, and if we look at the most influential economies in the world taking into account the Group of Seven industrialized countries, along with Russia and China, only Beijing, Moscow and Berlin remain outside the list of thirty countries that have The highest proportion of public debt.
In addition to Japan, Italy ranked sixth by 131%, the United States ranked 13th 105%, France ranked 11th 96%, Canada ranked 24th 89%, and the UK ranked 28th 87%.
| After the economic crisis of 2008, it was not only the poor countries that needed financing that exceeded their production capacity, but also some rich countries (agencies) |
The most indebted countries in the European Union
The magazine reported that the most indebted countries in the European Union are Greece, Italy and Portugal, as they occupy important ranks compared to what they owe to their creditors. In addition, Japan ranked second with 181% of debt, while Portugal ranked ninth by 117%, Belgium ranked 14th by 103%, Spain ranked 19th by 98%, and Cyprus ranked 20th with 97%.
It should be noted that Estonia ranks third at the bottom of the list with allocations of only 8.9% of GDP to creditors, and only Brunei (2.8%) and Afghanistan (7% were less indebted than Estonia).
As for Germany, it ranks 60th, and it is one of the major and healthier western economies in terms of debt, as it owes only 63% of GDP.
Among the 27 European Union countries, 17 are in the first half of the IMF's list. Among the countries that do not enter this first half, the Netherlands, Sweden, Denmark and Luxembourg were just among the wealthiest economies in Europe with less than 60% of their debt.
In the lower part, we find Russia, whose debt exceeds 15%, while China ranks 105th by 46.9%, with the possibility of a high debt ratio.
| The countries of the European Union occupy important ranks compared to what they owe to their (European) creditors. |
Countries break the descending trend
According to the data and expectations of the International Monetary Fund, most countries, rich and poor, will maintain the trend in recent years to reduce their debt, but this does not include all countries, specifically three countries, the United States, Russia and China, i.e. the three powers besides the European Union that represent The rhythms of the global economy.
According to data from the international organization, Washington, Beijing and Moscow, which recently caused geopolitical tension, intend to increase their debts. By 2022, the United States will become the 11th largest with obligations, approximately 115% of its GDP, China will owe more than 62% of its wealth, and Germany will work to reduce the debt barrier by 50% by 2021.