Top 10 Countries with Highest Debt in the World 2026

Global government debt reached a staggering $111 trillion in 2026, representing 94.7% of worldwide GDP. Understanding which countries carry the most debt provides crucial insights into global economic stability and financial challenges facing major economies.

National debt refers to the total amount governments owe to creditors, including other nations, corporations, and private individuals. While raw dollar amounts matter, economists also measure debt relative to GDP to assess a country's ability to repay obligations.

Top 10 Countries with the Highest National Debt in 2026

1. United States: $38.3 Trillion

The United States maintains the world's largest national debt at $38.3 trillion, accounting for over one-third of global government debt.

With a debt-to-GDP ratio of approximately 125%, American debt stems from decades of budget deficits, extensive military spending, tax cuts, pandemic relief efforts, and underfunded programs like Medicare and Social Security.

2. China: $16.2 Trillion

China ranks second with approximately $16.2 trillion in government debt, growing at 13.6% annually.

The debt reflects massive infrastructure investments, local government borrowing, and economic stimulus measures. China's debt-to-GDP ratio stands at 84.38%, a significant increase from 41.54% in 2014.

While concerning to some observers, many economists view China's debt as manageable given its enormous economy and substantial foreign reserves.

3. Japan: $11.5 Trillion

Japan carries $11.5 trillion in government debt with the world's highest debt-to-GDP ratio among major economies at 230%.

Japan's debt crisis traces back to the 1990s economic stagnation. Government initiatives including bank bailouts, bond sales, and low-interest credit programs saved the economy but dramatically increased national debt.

Subsequent challenges like the 2008 recession, 2011 Fukushima disaster, and COVID-19 pandemic further complicated debt reduction efforts.

4. United Kingdom: $3.8 Trillion

The United Kingdom holds approximately $3.8 trillion in debt, influenced by post-pandemic recovery spending and social program commitments.

British fiscal policies attempt to balance economic growth with healthcare, pension, and infrastructure obligations. The debt burden reflects decades of public investment in social services.

5. France: $3.6 Trillion

France's government debt totals roughly $3.6 trillion, driven by robust social welfare programs and public sector investments.

While debt servicing costs remain manageable, slow economic growth poses ongoing fiscal challenges. France maintains extensive social support systems that require substantial government funding.

6. Italy: $3.2 Trillion

Italy faces $3.2 trillion in government debt alongside high borrowing costs and structural economic challenges.

Persistent budget deficits combined with economic growth stimulus efforts have kept debt elevated for years. Italy struggles with competitiveness and productivity compared to other European nations.

7. India: $2.9 Trillion

India's debt of approximately $2.9 trillion reflects infrastructure expansion, social welfare programs, and economic reforms.

Despite rising borrowing, strong economic growth prospects help India manage fiscal pressures. The country invests heavily in development initiatives while balancing debt sustainability.

8. Germany: $2.8 Trillion

Germany maintains $2.8 trillion in government debt while demonstrating fiscal discipline in supporting industrial sectors and social programs.

German debt levels remain stable relative to the economy, with affordable borrowing costs due to historically low interest rates. Germany balances growth with responsible debt management.

9. Canada: $3.12 Trillion

Canada's external debt reaches $3.12 trillion, driven by government borrowing and corporate financing in resource and financial sectors.

Following pandemic-era relief measures, Canada continues investing in healthcare and social programs while pursuing fiscal strategies that balance growth with debt sustainability.

10. Brazil: $1.7 Trillion

Brazil faces approximately $1.7 trillion in debt amid high interest rates and fiscal pressures.

The country strives to stabilize its economy while supporting development initiatives and social spending. Debt management remains a key challenge as Brazil seeks economic growth.

Understanding National Debt Metrics

Total Debt vs. Debt-to-GDP Ratio

While the United States has the highest total debt, measuring debt relative to GDP provides different insights. Countries like Lebanon (358% debt-to-GDP) and Japan (230%) face greater challenges relative to economic output.

A debt-to-GDP ratio above 77% can hinder economic growth and potentially trigger default risks, wreaking havoc on economies and financial markets.

External Debt Components

External debt includes both public and private debt owed to non-residents, payable in internationally accepted currencies, goods, or services. It encompasses:

• Government borrowing from foreign entities
• Corporate debt to international creditors
• Private household obligations to overseas lenders

Global Debt Crisis Impact on Developing Nations

The World Bank's International Debt Report reveals that developing countries paid $741 billion more in debt principal and interest than they received in new financing between 2022 and 2024. This represents the largest gap in at least 50 years.

A record 61 developing countries allocated 10% or more of government revenues to interest payments in 2024. Approximately 3.4 billion people live in nations spending more on debt interest than on health or education.

Countries with Lowest Debt Levels

While analyzing high-debt nations, it is worth noting countries maintaining minimal debt:

• Macao SAR: Zero debt
• Liechtenstein: Virtually no debt
• Kuwait: 7.3% debt-to-GDP ratio
• Brunei: Minimal external debt
• Russia: 19.55% debt-to-GDP ratio