With inflation rates spiralling worldwide and a global cost of living crisis causing many of us to tighten our belts this year, the high levels of debt that consumers, companies and governments have racked up are cause for some consternation.
The higher cost of living has seen people from all walks of life looking for new ways to supplement their income and shore up their finances. For some, this has involved starting a business, taking a second job, or monetising their hobbies. Others have turned to investing, forex, and even cryptocurrency, seeking the best stock brokers and trading platforms to suit their needs.
However, while tapping into new revenue sources is a great way to diversify your income, reducing your debt levels is just as valid of a priority. Higher inflation rates often cause banks to raise their interest rates in response, helping to protect people’s savings from the devaluation of the currency.
However, this also means that interest rates on credit cards, loans and other forms of debt increase, causing the value of your debts to increase with inflation.
This is a cause of concern for many borrowers, especially those on variable rates, who may find themselves with unaffordable debt levels if their income doesn’t increase at the same rate. However, it’s not only consumers who might be caught out by inflated debt, as many companies and governments owe vast amounts of money, which could drastically impact their finances if inflation rates continue to rise.
With this in mind, we wanted to assess the global debt divide between countries and sectors to see where in the world has the biggest debt problem. We will also compare each country’s consumer, corporate and government debt levels to reveal which is the most financially responsible in each location.
🇨🇭 Switzerland Household Debt (% of GDP): 128.30%
Switzerland has the highest household debt as a percentage of GDP, which, as of 2022, stands at 128.30%. Switzerland is a very high-income country with an equally high cost of living. This means that people could be going into debt for several reasons, such as failing to keep up with expenses or, conversely, earning enough to access high credit levels.
🇦🇺 Australia Household Debt (% of GDP): 111.8%
Australia has the second highest household debt level, at 111.8% of GDP. Australia is another developed country with a high level of debt, which has been driven to new heights by the ongoing cost of living crisis. Australia can experience extreme temperatures in the summer, causing many residents to turn to air conditioning units to keep cool, which can use a lot of electricity and drive up bills.
🇰🇷 South Korea Household Debt (% of GDP): 105.1%
South Korea has the third highest level of household debt in our study, at 105.1% of GDP. South Korea is a highly developed East-Asian country with a booming technology industry. The rapid growth of the past few decades has seen an equally high increase in personal borrowing, leading to a very high level of household debt.
🇸🇱 Sierra Leone Household Debt (% of GDP): 1.9%
The country with the lowest level of household debt in our study is Sierra Leone, which stands at just 1.9% of GDP. While this figure does suggest that people in Sierra Leone are much better at living within their means than in some other countries, it also highlights the need for more access to credit that many people in less affluent or developed countries can face.
🇵🇰 Pakistan Household Debt (% of GDP): 2.8%
Pakistan has the second lowest level of household debt in our study at 2.8% of GDP. Pakistan is the fifth largest country in the world by population, but a large proportion of these live in poverty. People in the country have come under increasing financial pressure as inflation has risen sharply while the Pakistani Rupee has declined.
🇦🇷 Argentina Household Debt (% of GDP): 4.1%
Argentina has the third lowest level of household debt at 4.1% of GDP. This expansive South American country is experiencing a deal of economic turmoil, which is only exacerbated by the global financial crisis and the economic fallout of the war in Ukraine. Inflation has been spiking in Argentina in 2025, and the country’s economy looks to be headed towards recession, so it may be a good thing that debt levels in the country are relatively low.
🇯🇵 Japan General Government Debt (% of GDP): 261.3%
Japan has the highest level of government debt at as much as 261.3% of GDP. Japan has an increasingly ageing population caused by rising life expectancy and a shrinking birth rate, which have led to intense economic strain as healthcare, pension, and social care costs have mounted. With fewer people entering the workforce, tax revenues have declined, adding to the country’s financial stress.
🇬🇷 Greece General Government Debt (% of GDP): 177.4%
Greece has the second highest government debt rate at 177.4% of GDP. The Greek economy has experienced a decade-long debt crisis, which arose following the Great Recession. A shrinking economy and falling tax revenues, accentuated by widespread tax evasion, devastated the economy. However, Greece has made strides in getting its economy back on track in recent years, repaying billions in Eurozone bailout loans.
🇻🇪 Venezuela General Government Debt (% of GDP): 157.8%
The country with the third-highest government debt is Venezuela, where it stands at 157.8% of GDP. Venezuela has been experiencing an economic crisis in recent years, which many have attributed to political mismanagement, populist policies, anti-democratic governance and corruption. These factors have led to hyperinflation in the country, with annual inflation rates in the thousands of percent, which has led to many people adopting the US dollar as a de facto currency.
🇹🇲 Turkmenistan General Government Debt (% of GDP): 5.2%
Turkmenistan has the lowest level of general government debt in our study, at 5.2%. Classified as an upper-middle-income country since 2012, Turkmenistan stands out as a relatively developed country for having such a low level of government debt. Turkmenistan’s policy of international neutrality, isolated nature and access to vast natural resources via the Caspian Sea have all helped it achieve a low level of government debt. However, the recent instability of gas prices has still put pressure on the economy.
🇫🇲 Micronesia General Government Debt (% of GDP): 14%
The Federated States of Micronesia is the country with the second lowest level of government debt at 14% of GDP. The country, which comprises over 600 islands across four island states, has seen low levels of economic development and industrialisation, partly due to a lack of natural resources and space. While this has prevented the country from becoming particularly wealthy, the lack of large government projects has also limited the potential for high debt levels.
🇨🇩 Democratic Republic of the Congo. General Government Debt (% of GDP): 14.6%
The Democratic Republic of Congo (DRC) has the third lowest level of government debt in our study, at 14.6%. The DRC economy has been hampered by long-term unrest and violence, including rebel activity and terrorist threats, as well as widespread corruption, high crime rates and the millions of displaced people within its borders.
🇱🇺 Luxembourg Corporate Debt (% of GDP): 397.6%
Luxembourg has the highest corporate debt rate in our study at 397.6% of GDP. The tiny European nation is a hub of innovation which attracts many businesses in the tech and finance sectors and has political significance at the heart of the European Union. However, companies in Luxembourg have accumulated by far the highest rate of corporate debt compared to GDP. This could be due to investing in the future development of their businesses, though the country’s diminutive size and relatively small GDP could be skewing the data slightly.
🇮🇪 Ireland Corporate Debt (% of GDP): 241.2%
Ireland has the second highest corporate debt rate in our study at 241.2%, which, while much lower than first-place Luxembourg, remains far higher than all other countries. Ireland is a popular location for international companies to base their European headquarters, as it offers low corporate tax rates, grants them access to the European market, and allows easy access to the United Kingdom.
🇸🇪 Sweden Corporate Debt (% of GDP): 187.1%
Sweden has the third largest corporate debt rate at 187.1% of GDP, meaning all of the top three countries for corporate debt are in Europe. One of the wealthiest countries in Europe, approximately one-third of Sweden’s national GDP comes from exports, with the manufacturing of electronics and automobiles forming a large part of the economy.
🇯🇴 Jordan Corporate Debt (% of GDP): 41.8%
Jordan is the country with the lowest level of corporate debt in our study, at 41.8% of GDP. This much lower level of corporate debt means companies in Jordan are less exposed to the effects of spiralling inflation rates around the globe. Inflation within the country has been relatively stable, at just 1.2% as of September 2025.
🇲🇺 Mauritius Corporate Debt (% of GDP): 46.9%
The country with the second lowest level of corporate debt is Mauritius, at 46.9% of GDP. This island nation off the coast of Eastern Africa has a reasonably diverse economy for such a small country, with agriculture, exports, financial services and tourism all playing a significant role. With low corporate debt levels, Mauritius’ economy looks well-placed to weather the current global economic downturn.
🇬🇷 Greece Corporate Debt (% of GDP): 61.5%
Greece has the third lowest rate of corporate debt in our study at 61.5% of GDP. Greece has had its fair share of economic uncertainty, and this low level of corporate debt could be a hangover from the country’s decade-long government debt crisis, with companies unwilling to invest and, therefore, not borrowing money to expand. However, this low level of debt could help protect the country’s private sector as inflation rates rise worldwide.
s we have seen, household, government and corporate debt levels vary considerably from country to country. With this in mind, we wanted to reveal the countries where each debt type is largest, highlighting whether countries’ governments, companies or the general public are the most financially responsible.
Country | Highest | Mid | Lowest | Household Debt (% of GDP) | Government Debt (% of GDP) | Corporate Debt (% of GDP) |
Austria | Corporate | Government | Household | 48.2% | 77.8% | 111.5% |
Belgium | Corporate | Government | Household | 60.4% | 105.3% | 182.5% |
Canada | Corporate | Government | Household | 102.4% | 106.6% | 165.0% |
Chile | Corporate | Household | Government | 46.5% | 38.0% | 156.1% |
Croatia | Corporate | Government | Household | 31.0% | 67.5% | 143.0% |
Czech Republic | Corporate | Government | Household | 32.6% | 42.3% | 105.0% |
Denmark | Corporate | Household | Government | 86.2% | 29.7% | 160.0% |
Germany | Corporate | Government | Household | 55.1% | 66.5% | 122.3% |
Ireland | Corporate | Government | Household | 26.0% | 45.2% | 241.2% |
Luxembourg | Corporate | Household | Government | 67.2% | 24.3% | 397.6% |
Netherlands | Corporate | Household | Government | 94.9% | 48.5% | 163.1% |
Norway | Corporate | Household | Government | 77.0% | 39.6% | 157.3% |
Poland | Corporate | Government | Household | 26.7% | 49.6% | 80.6% |
Portugal | Corporate | Government | Household | 61.5% | 116% | 159.7% |
Romania | Corporate | Government | Household | 12.1% | 47.2% | 98.6% |
Slovakia | Corporate | Government | Household | 48.0% | 58.8% | 93.9% |
South Korea | Corporate | Household | Government | 105.1% | 54.3% | 173.6% |
Sweden | Corporate | Household | Government | 88.2% | 31.7% | 187.1% |
Switzerland | Corporate | Household | Government | 128.3% | 39.1% | 143.1% |
United Kingdom | Corporate | Government | Household | 83.2% | 101.4% | 104.6% |
United States | Corporate | Government | Household | 74.4% | 121.4% | 142.4% |
Corporate debt was the highest debt type in the vast majority of countries where data was available across all three, accounting for 21 of 25 countries. Large companies often use lines of credit to fund expansions and development, allowing them to become more profitable down the line. This practice is fairly common, as it can be far too expensive to expand businesses without borrowing, and these investments are carefully planned to ensure a healthy return which exceeds the amount borrowed.
However, it may cause some concern to see the private sector borrowing at such a high rate compared even to governments, especially when a global cost of living and inflation crisis threatens to destabilise markets and make borrowing much less affordable.
Country | Highest | Mid | Lowest | Household Debt (% of GDP) | Government Debt (% of GDP) | Corporate Debt (% of GDP) |
Greece | Government | Corporate | Household | 45.0% | 177.4% | 61.5% |
Italy | Government | Corporate | Household | 41.7% | 144.4% | 111.4% |
Japan | Government | Corporate | Household | 68.2% | 261.3% | 159.0% |
Mauritius | Government | Corporate | Household | 31.8% | 87.0% | 46.9% |
Greece, Italy, Japan and Mauritius, were the only countries with complete data where government debt was higher than both corporate and household debt. These countries all have very unique economic situations, caused by historic economic downturns, demographic challenges or environmental changes.
Government debt being the highest debt type is cause for some concern, as it suggests that the tax income from both businesses and the general public is not high enough to sustain public services and government projects at their current levels. This could lead to austerity measures being implemented if the governments fail to increase tax revenues through economic stimulus, such as encouraging foreign direct investment, tourism, business development and technological innovation.
Country | Highest | Mid | Lowest | Household Debt (% of GDP) | Government Debt (% of GDP) | Corporate Debt (% of GDP) |
Chile | Corporate | Household | Government | 46.5% | 38.0% | 156.1% |
Denmark | Corporate | Household | Government | 86.2% | 29.7% | 160.0% |
Luxembourg | Corporate | Household | Government | 67.2% | 24.3% | 397.6% |
Netherlands | Corporate | Household | Government | 94.9% | 48.5% | 163.1% |
Norway | Corporate | Household | Government | 77.0% | 39.6% | 157.3% |
South Korea | Corporate | Household | Government | 105.1% | 54.3% | 173.6% |
Sweden | Corporate | Household | Government | 88.2% | 31.7% | 187.1% |
Switzerland | Corporate | Household | Government | 128.3% | 39.1% | 143.1% |
Household debt had the lowest rates of debt compared to GDP in most countries, accounting for 68% of those included. This indicates that the public are generally more financially responsible than governments and corporations, living more within their means without access to vast lines of credit. As such, even more responsibility for the economic effects of higher debt levels can be placed at the feet of governments and large corporations rather than the average borrower.
However, there were eight countries where government debt, rather than household debt, was the lowest of the three types explored in this study. Six were European countries: Denmark, Luxembourg, the Netherlands, Norway, Sweden and Switzerland, most of which are located in Scandinavia and Northern Europe.
The remaining two countries, Chile and South Korea are geographical outliers, but all eight countries have a high relative cost of living. Meanwhile, these countries’ governments have managed to keep their economies fiscally viable, with government debt rates below 50% of GDP in each country other than South Korea, which sits at 54.3%.
Rank | Country | Household Debt (% of GDP) | General Government Debt (% of GDP) | Household Debt – Government Debt Ratio |
1 | Greece | 45.0% | 177.4% | 0.25 |
2 | Romania | 12.1% | 47.2% | 0.26 |
2 | Japan | 68.2% | 261.3% | 0.26 |
4 | Italy | 41.7% | 144.4% | 0.29 |
5 | Mauritius | 31.8% | 87.0% | 0.37 |
6 | Croatia | 31.0% | 67.5% | 0.46 |
7 | Portugal | 61.5% | 116% | 0.53 |
8 | Poland | 26.7% | 49.6% | 0.54 |
9 | Belgium | 60.4% | 105.3% | 0.57 |
10 | Ireland | 26.0% | 45.2% | 0.58 |
🇬🇷 Greece Household – Government Debt Ratio: 0.25
Greece has the lowest household-government debt ratio at 0.25, with government debt owing four times as much as the general public. While Greece’s household debt is higher than in some other countries, the high level of government debt has resulted in the lowest ratio in our study, showing the Greek public to be the most financially responsible given their relative economic situation.
🇷🇴 Romania Household – Government Debt Ratio: 0.26
Romania has the second lowest household-government debt ratio at 0.26, which is barely a fraction higher than first place Greece’s rate. Romania has a very low level of household debt at just 12.1% of GDP, showing that people in the country are adept at living within their means. However, the government also has one of the lowest debt rates at 47.2%, meaning the country doesn’t quite earn the best score on our ratio.
🇯🇵 Japan Household – Government Debt Ratio: 0.26
Tied for second place is Japan, which also earned a household-government debt ratio of 0.26. The major Asian economy struggles with some of the highest government debt levels in the world, yet the Japanese public have exercised considerable fiscal responsibility to keep household debt levels under control.
🇨🇦 Canada
Household Debt: 102.4% of GDP
General Government Debt: 106.6% of GDP
Corporate Debt: 165% of GDP
Debt levels in Canada are some of the highest in the world, with the country making the top ten for each of the three types of debt investigated in this study. The country ranks fourth for household debt, at 102.4% of GDP, while general government debt is the ninth-highest at 106.6%. However, the country’s corporate debt is much higher at 165% of GDP, earning it sixth place in the global rankings.
🇫🇷 France
Household Debt: 66.1% of GDP
General Government Debt: 111.7% of GDP
Corporate Debt: N/A
While data for corporate debt levels wasn’t available in France, we do have figures for the other two debt types. France had the 17th highest level of household debt out of the 62 countries in our study for which this data was available, with a rate of 66.1% of GDP. Meanwhile, general government debt is much higher at 111.7% of GDP.
🇩🇪 Germany
Household Debt: 55.1% of GDP
General Government Debt: 66.5% of GDP
Corporate Debt: 122.3% of GDP
The third largest economy in the world by GDP and the largest in Europe, Germany is an economic powerhouse that is the financial heart of the European Union. Household debt is the smallest debt type in Germany at 55.1% of GDP, the 22nd highest rate in our study, just above Spain and one spot below Belgium. General government debt is slightly higher at 66.5% of GDP. However, corporate debt is approximately double this figure at 122.3%, clearly showing that private enterprise is the least financially responsible group in the country.
🇮🇹 Italy
Household Debt: 41.7% of GDP
General Government Debt: 144.4% of GDP
Corporate Debt: 111.4% of GDP
While household debt in Italy is relatively low compared to other G7 countries, sitting at 41.7% of GDP, the country’s government debt has one of the highest rates in our study, earning it fourth place at 144.4% of GDP. This high public-sector debt rate makes it one of the four countries where corporate debt isn’t the highest type, with the private sector owing 111.4% of GDP. Some of Italy’s economic woes stem from having a gradually ageing population, which puts pressure on public sector finances. At the same time, a national job shortage sees many young potential taxpayers move abroad to find work.
🇯🇵 Japan
Household Debt: 68.2% of GDP
General Government Debt: 261.3% of GDP
Corporate Debt: 159% of GDP
Japan is another country where general government debt exceeds non-financial corporate debt. As mentioned in earlier sections, Japan has the highest level of government debt in our study at 261.3% of GDP. In addition to a more acute ageing population problem than what Italy is facing, Japan has also experienced a period of economic stagnation known as the “lost decades”, during which companies have lacked innovation and struggled to adapt to modern business practices, being held back by dense bureaucracy and the continued use of outdated technology such as fax machines.
🇬🇧 United Kingdom
Household Debt: 83.2% of GDP
General Government Debt: 101.4% of GDP
Corporate Debt: 104.6% of GDP
The United Kingdom has some relatively high debt levels, especially for household and government debt, both of which took 11th place in our study, with rates of 83.2% and 101.4% of GDP, respectively. However, while corporate debt in the country is higher than both these figures at 104.6% of GDP, it was actually the seventh-lowest in our study, just higher than Romania, which saw a corporate debt rate of 98.6% of GDP. The comparatively low ranking for the UK’s corporate debt rate could be due to the much smaller number of countries for which this factor was available, making it easier to place in the lowest 10.
🇺🇸 United States
Household Debt: 74.4% of GDP
General Government Debt: 121.4% of GDP
Corporate Debt: 142.4% of GDP
The United States is the largest economy in the world by GDP and is a global superpower that influences markets and politics worldwide. However, there are colossal wealth and productivity divides across the country, most easily viewed when comparing the GDP and GDP per capita between different states. When looking at the country as a whole, the national household debt is relatively high at 74.4% of GDP, placing 13th overall. This figure is far outstripped by government debt, the fifth highest in our study at 121.4% of GDP, while corporate debt is even higher at 142.4%.
We wanted to explore debt levels worldwide, comparing household, general government and corporate debt rates in different countries as a percentage of their respective GDPs.
To do this, we used data from IMF’s Global Debt Database, taking 2022 figures for general government debt, non-financial corporate debt and household debt for all countries for which data was available.
We then created a ranking for each debt type and revealed the countries with the highest and lowest rates of each as a percentage of their respective GDPs.
Additionally, we combined the data into a single table, including all countries where data was available for all three debt types. This allowed us to see whether governments, the private sector or the public were the most financially responsible in each country and revealed international trends.
Lastly, we highlighted the various debt levels in each G7 country to create an overview of debt in some of the world’s most politically and economically significant countries.
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