10 Most Indebted Countries as Global Debt Soars to $150 Trillion
The world’s 10 most indebted countries account for the bulk of a record $150 trillion in global debt, underscoring how borrowing has outpaced economic growth.
Global debt has surged to an unprecedented $150 trillion in the first quarter of 2025, according to new figures.
According to figures, global debt surged to this unprecedented level in the first quarter of 2025, nearly $40 trillion more than the World Bank’s $111 trillion estimate for global GDP in 2024.
This represents a 6% increase from the same period last year, when total debt stood at $142 trillion.
Analysts attribute the rise to lingering pandemic-related spending, rising defense budgets amid geopolitical tensions, and fiscal measures aimed at reviving sluggish economies.
The data, compiled by Visual Capitalist in partnership with Terzo, makes clear that most of the world’s debt is concentrated in advanced economies.
Countries such as the U.S., Japan, France, and the UK dominate the rankings, reflecting their long-standing reliance on debt financing to support consumption, welfare systems, and infrastructure.
Emerging economies are not immune, however. China, now the world’s second-largest economy, carries the second-highest debt burden, while Brazil is the only Latin American country to feature among the top 10.
For emerging markets, the challenge lies in balancing the need for growth-driven borrowing with the risks of investor flight as global interest rates remain high.
Together, these ten countries account for over 84% of global debt, leaving little room for other economies in the picture.
Although no African country appears in the global top 10, the continent has been hit hardest by debt distress in recent years.
Nations such as Ghana, Zambia, and Ethiopia have either defaulted or entered debt restructuring talks with international creditors.
According to the IMF, more than 20 African countries are now at high risk of debt distress, with repayments consuming a significant share of government revenues.
Unlike developed economies that borrow in their own currencies, most African governments depend on dollar- or euro-denominated debt, making them especially vulnerable to rising global interest rates and currency depreciation.
This debt strain is already reshaping policy across the continent. Governments are under pressure to cut subsidies, increase taxes, and attract concessional loans from multilaterals like the African Development Bank or the IMF.
The global surge in debt also makes credit more expensive, further limiting Africa’s fiscal room to invest in infrastructure and social programs.
