Global Debt Rankings: IMF Data Reveals Japan Leads at 249% of GDP

Brazil sits far from the most indebted nations while Japan claims surprising first place

According to the latest International Monetary Fund (IMF) data released in October 2024, Japan tops the global debt rankings with an astonishing 248.7% debt-to-GDP ratio.

The debt-to-GDP ratio—a critical economic indicator calculated by dividing a country's public debt by its GDP—measures a government's debt burden relative to its economic output and reflects its capacity to meet financial obligations.

Sudan follows closely in second position with 237.1%, while Singapore occupies the third spot with a substantial 175.8% ratio.

Greece (152.9%) and Italy (138.7%) maintain their positions among the most indebted nations, largely due to lingering effects from previous economic crises.

Smaller economies with specialized focuses have also entered the high-debt club, including the Maldives (133.6%) and Bahrain (129.8%), whose economies heavily depend on tourism and oil industries respectively.

Completing the top 10 most indebted nations are the United States (124.1%), the Lao People's Democratic Republic (118.3%), and France (115.3%).

Brazil's Debt Position Improving

Despite being frequently criticized by economists and political analysts as "fiscally irresponsible," Brazil ranks considerably lower at 23rd position with a debt-to-GDP ratio of 92%—well outside the top 10 most indebted countries.

Brazil's fiscal situation has actually improved in 2024, with deficit reduction pushing its debt trajectory downward. By November, Brazil's debt had decreased to 77.7% of GDP, which would place it even lower at 43rd position globally.

This improved positioning puts Brazil well below the average debt level for developed nations (111%) and closer to the developing countries' average (71%), suggesting stronger fiscal health than many major economies on the list.

For cryptocurrency investors monitoring macroeconomic conditions, these debt levels offer important insights into potential monetary policies and economic stability factors that could influence both traditional and digital asset markets in coming months.