The debt of the countries of the world for 2015

Economic and political instability, budget deficits are forcing governments to resort to borrowed funds. Money borrowed from other states, from international funds and investors helps to increase financial opportunities and replenish the country’s resources. But on the other hand, they increase the risks of an economic crisis. External debt is the difference between borrowed funds and payments on interest and principal. It is measured in dollars for ease of comparison with GDP. In many countries, such debt has accumulated for decades. Its increase was facilitated by the global crisis of 2007-2008. But the external debt of the countries of the world for 2015 broke all records. The countries of the Eurozone became the leaders among the debtors. The first position is held by the largest economy in the world – the United States.

The ranking includes ten countries with the largest foreign borrowing in the world over the previous year.

10 Canada | 1,49 trillion dollars

Canada opens the top ten countries in the world with the largest external debt.

The country’s debt began to grow rapidly during the 2008 crisis. Since then, the country has owed the world $1,49 trillion to cover the budget deficit and stimulate the economy. If you divide this amount, then for each Canadian you will have 39 thousand dollars of debt. In 2015, Canada experienced an economic downturn and the country’s GDP declined. The main position in the economy is occupied by the logging and oil extraction industries. Moreover, oil is extracted by a much more complex and expensive method, unlike the traditional one. Falling oil prices have forced industrialists to cut production costs. First of all, due to job cuts. The state was forced to resort to loans in order to provide social guarantees to the population and stabilize the economic situation.

9. Spain | 1,5 trillion dollars

Spain ranked ninth. The external debt of this country has reached the highest value in history. If you divide it per capita, then each will have 31 thousand dollars. And if you divide the debt by interest, then each will have more than 720 euros, and this despite the fact that the average salary in the country is slightly more than 650 euros. The government allocates more funds to pay off the debt than to combat unemployment and social programs. At the same time, GDP grew by 3% and experts predict the same increase in 2016. At the end of 2015, the country’s total external debt was estimated at $1,5 trillion.

8. Brazil | 1,8 trillion dollars

Brazil owes the world about 1,8 trillion dollars. For one of the largest countries in Latin America, 2015 was marked by an economic decline in production by almost 4%, a rise in inflation and unemployment. The fall in prices for raw materials (and this is mainly agriculture), the decline in demand from China’s main trading partner, and the unfavorable political situation were the prerequisites for the growth of the state’s public debt. Investors are trying not to invest in Brazilian bonds. Nevertheless, the country’s foreign exchange reserves are strong enough to avoid problems with external debt servicing.

7. France | 2,3 trillion dollars

The public debt of another Eurozone state is growing − France. As of 2015, the loan amount was $2,3 trillion. Low consumer activity, a high unemployment rate of 10,5% and virtually no investment hinder the development of the economy. But they do not interfere with increasing public debt, which in 2015 was slightly above 95% of GDP. Every Frenchman owes 34 thousand euros and this debt continues to grow.

6. Italy | 2,5 trillion dollars

Italy with a debt of 2,5 trillion dollars, was in the top ten countries with the largest loan. The government is not going to stop, increasing the amount of borrowed funds. Thus, she tries to stabilize the economic situation in the country. For every inhabitant of the country, there is 41 thousand euros of debt, which is more than 130% of GDP. Experts see the problem in the unfavorable business climate created by the state, in the high level of corruption, and in the absence of reforms capable of changing the current power structure. Despite the fact that Italy is gaining debt to raise the economy, the latter is not growing.

5. UK | 2,52 trillion dollars

Economy UK considered one of the most developed in the world. But in 2015, the country’s debt passed the $2,52 trillion mark. Most of it is short-term loans from commercial banks. Most of all, Britain owes the United States and Germany, France and Spain. Due to the large stock of gold and foreign exchange assets, experts do not sound the alarm and do not talk about the economic crisis. The British pound sterling, being a convertible currency, is firmly holding its positions.

4. Germany | 2,6 trillion dollars

Germany located one step away from the three largest debtors in the world. The amount owed by the country is estimated at 2,6 trillion dollars.

But despite the relatively large debt, the German economy remains stable. As for the debt-to-GDP ratio, the country has the highest rate for these criteria in the world – more than 80%.

3. China | 3,1 trillion dollars

China (PRC) is the world’s largest creditor and, paradoxically, it is also one of the main debtors according to 2015 data. But China is considered a “good” debtor, as its vast reserves of gold and currency ensure that debt is repaid on time. The amount of China’s debt at the beginning of 2016 amounted to 3,1 trillion dollars.

2. Japan | 12,2 trillion dollars

Japan – one of the most scrupulous countries in terms of finances and became one of the largest debtors in the world in 2015. Its debt today is 12,2 trillion dollars, and it is growing more and more every day. In the last year alone, its amount has increased by more than $1,4 trillion. The accident at the Fukushima nuclear power plant after the 2011 tsunami greatly affected the country’s economy. The state was forced to increase debt to eliminate the consequences.

1. USA | 19,75 trillion dollars

USA occupy the first line of the ranking. The most developed economy and one of the largest countries also has the largest external debt, which is estimated at $19,75 trillion. This figure only says that Americans do not save, and their expenses sometimes exceed incomes.

The main US investors are China and Japan. These countries, at any level of debt of the United States, will buy their bonds so that America can pay for their goods with the proceeds. Russia is also among America’s top ten creditors.