Key Highlights
- Worldwide public debt projected to exceed 100 % of global GDP by 2030.
- Average general government debt jumped to 94.7 % of GDP in 2025, a rise from 92.4 % in 2024.
- Japan tops the list with a debt‑to‑GDP ratio of 229.6 %, the highest of any country.
- High debt burdens are driven by weak growth, pandemic‑linked spending, and rising interest rates.
- More than 68 % of nations have experienced a year‑on‑year increase in debt pressure in 2025.
Detailed Insights
Debt trajectory and global context – Even before the pandemic, many advanced economies carried sizable public debt. The IMF now projects that the aggregate debt-to-GDP ratio will climb from 98.9 % in 2020 to 102.3 % by 2030.
2025 debt landscape – As of October 2025, the IMF’s World Economic Outlook records a world average of 94.7 % of GDP in general government gross debt. This figure is already surpassing the pre‑pandemic 2019 level of 92.4 %.
Top 10 indebted nations (October 2025) –
- 1. Japan – 229.6 % of GDP
- 2. Sudan – 221.5 % of GDP
- 3. Singapore – 175.6 % of GDP
- 4. Greece – 146.7 % of GDP
- 5. Bahrain – 142.5 % of GDP
- 6. Italy – 136.8 % of GDP
- 7. Maldives – 131.8 % of GDP
- 8. United States – 125.0 % of GDP
- 9. Senegal – 122.9 % of GDP
- 10. France – 116.5 % of GDP
India, China and other emerging economies – The United States remains eighth globally at 125 % of GDP. China sits at 96.3 % (21st globally) and India at 81.4 % (35th globally). Both countries have pursued comparatively restrained fiscal trajectories.
Implications of rising debt – Elevated borrowing costs, reduced fiscal leeway and an increased probability of a slowdown are the principal concerns highlighted by the IMF. The institution calls for enhanced fiscal discipline, growth‑promoting policies and deficit reduction.
Key Concepts
- Public debt – The total amount owed by the state, including monetary and non‑monetary obligations, to all creditors.
- Debt‑to‑GDP ratio – A comparative measure that expresses public debt as a percentage of a country’s gross domestic product.
- Fiscal discipline – Policies aimed at maintaining sustainable levels of public deficit and debt, often through spending restraints and revenue enhancement.
- Sovereign wealth fund – A state‑owned investment fund that holds assets for long‑term national benefit, frequently used to manage excess fiscal surpluses.