Global Ranking of Government Debt-to-GDP Ratios: Sudan, Japan, and Singapore Lead in 2024

Debt-to-GDP ratio is a key indicator that compares a country's public debt to its gross domestic product. It is expressed as a percentage and reflects the government's ability to manage and repay its obligations based on the size of its economy. A high ratio may suggest fiscal stress, though its impact varies by country context.

The government debt-to-GDP ratio is one of the most widely used indicators to assess a country's fiscal health. In 2024, Sudan registered the highest debt burden relative to its GDP, standing at 271.98%. This indicates a critical financial situation, likely driven by a combination of low GDP and large government borrowing, reflecting structural economic challenges and possible reliance on external debt or monetary financing.

Japan, with a debt ratio of 236.66%, continues to maintain one of the highest debt burdens among advanced economies. However, Japan’s situation differs significantly from other nations due to its large domestic investor base and strong market confidence in the yen. Despite its high ratio, Japan faces minimal default risk, showcasing how the composition and holders of debt play a crucial role in debt sustainability.

Singapore, ranking third at 174.30%, presents a unique case. Much of Singapore's gross debt stems from fiscal strategies tied to its sovereign wealth funds and investment-linked policies. It maintains substantial financial assets that offset these liabilities, so the high debt ratio does not necessarily imply fiscal distress.

Other countries with notably high debt ratios include Lebanon (164.13%), Venezuela (164.27%), and Greece (150.89%). These economies have experienced prolonged fiscal instability, political turbulence, or economic contraction, all of which exacerbate debt challenges. Southern European countries such as Italy (135.29%) and Portugal (94.93%) continue to face debt overhangs from the Eurozone crisis, despite improvements in economic fundamentals.

In North America, the United States appears at 10th with a debt-to-GDP ratio of 120.79%. This reflects the legacy of pandemic-era stimulus, persistent budget deficits, and rising interest costs. Although the U.S. has global financial advantages, including the dollar’s reserve status, long-term debt sustainability remains a critical policy concern.

Several African nations such as Zambia (114.94%), Mozambique (96.62%), and Zimbabwe (94.59%) also show high debt ratios, reflecting external borrowing pressures and limited fiscal buffers. These countries often face difficulties in accessing international capital markets and are more vulnerable to global interest rate fluctuations.

Overall, the data highlights that a high government debt-to-GDP ratio is not inherently problematic, but the implications vary significantly based on the economic structure, institutional credibility, and policy response of each country. Some nations with high ratios enjoy market confidence and policy flexibility, while others face elevated risks of fiscal crisis or external default. Sustainable debt management will continue to be a central issue for global policymakers in the years ahead.