Rich Nations, Huge Debts
A recent study by Falcon Funded revealed the ten richest countries with the most debt in 2025. Data collection focused on GDP figures, external debt totals, economic freedom indices, inflation rates, and a specialized Financial Stress Score.
This comprehensive Financial Stress Score was calculated using a weighted combination of debt measurements, economic stability metrics, and financial market indicators, with the United States serving as the benchmark at 100 against which other nations were measured.
Rank | Countries | External Debt (millions US$) | Dept as a % of GDP | Index of Economic Freedom |
1 | United States | 25.80 trillion | 95.94% | 70.2 |
2 | Singapore | 2.15 trillion | 418.87% | 84.1 |
3 | United Kingdom | 10.53 trillion | 253.92% | 69.3 |
4 | France | 8.04 trillion | 260.77% | 64.4 |
5 | Switzerland | 2.32 trillion | 259.09% | 83.7 |
6 | Germany | 7.25 trillion | 160.56% | 71.6 |
7 | Belgium | 1.65 trillion | 253.47% | 69 |
8 | Finland | 686.77 billion | 232.80% | 77 |
9 | Argentina | 289.97 billion | 46.47% | 54.2 |
10 | Canada | 3,163.20 billion | 145.70% | 75.5 |
You can access the full research findings by following this link.
The United States tops the list with a Financial Stress Score of 100. The U.S. holds the largest absolute external debt at $25.8 trillion. While having a more balanced economic-to-debt proportion than most countries in the top 10, the sheer magnitude of U.S. debt creates significant financial stress on global markets. The U.S. demonstrates moderate economic freedom with manageable inflation at 2.4%.
Singapore follows at 2nd with a score of 75.75. The city-state shows the most severe imbalance between economy and debt among all analyzed countries, with external obligations exceeding its economic output by over four times. Unlike the U.S., Singapore offsets this burden with the highest economic freedom score among the top 10 countries and maintains remarkably low inflation at 0.9%.
The United Kingdom places 3rd with a score of 74.09. The UK shoulders the third-largest absolute debt burden at $10.53 trillion, with obligations exceeding its economy by about 2.5 times. Compared to Singapore, the UK shows a more modest economic freedom score while facing slightly higher inflation at 2.8%, among the higher rates among European countries on the list.
France secures 4th position with a score of 64.57. French external obligations exceed its economic output by nearly 2.6 times, slightly more severe than the UK. The nation benefits from one of the lowest inflation figures among the top 10 at 0.8%, significantly better than the UK.
Switzerland holds 5th place with a score of 54.64. Swiss external obligations mirror the pattern seen in France, exceeding its economy by about 2.6 times. Unlike France, Switzerland has the lowest inflation rate in the entire top 10 at just 0.3% and the second-highest economic freedom score after Singapore, significantly mitigating its debt burden.
Germany stands at 6th with a score of 52.60. As Europe’s largest economy, Germany shows a notably healthier balance than its continental neighbors, with external obligations exceeding its economy by only 1.6 times, much lower than Switzerland, France, or the UK. Germany combines stronger economic freedom than France with moderate inflation at 2.2%.
Belgium occupies 7th position with a score of 47.72. Belgian external obligations exceed its economy by about 2.5 times, similar to the UK pattern. The country experiences the highest inflation among European nations on the list at 2.9%, slightly worse than the UK, while maintaining comparable economic freedom scores.
Finland takes 8th place with a score of 43.84. Finnish external obligations stand at 2.3 times its economic output. The Nordic nation enjoys the second-lowest inflation at 0.5%, approaching Switzerland’s remarkable stability, while having stronger economic freedom than both Belgium and France, helping offset its substantial obligations.
Argentina stands at 9th with a score of 41.59. Argentina presents a contrast to all preceding nations with external obligations at less than half its economic output. This apparent advantage is completely overshadowed by extreme inflation at 55.9% and the weakest economic freedom score in the entire top 10, creating significant financial stress despite lower debt levels.
Canada completes the list at 10th with a score of 40.12. Canadian external obligations exceed its economy by about 1.5 times, resembling Germany’s more balanced approach rather than the severe imbalances seen in European countries like France or the UK. The country combines strong economic freedom with moderate inflation at 2.3%, explaining its position with the lowest stress score despite substantial debt.
Nathan Nolan, a founder of Falcon Funded, commented on the study: “National debt levels have reached historically unprecedented territories, fundamentally altering the risk profile of even the most stable economies. While absolute debt figures matter, the true concern lies in sustainability metrics and how effectively countries leverage their borrowed capital for productive investments rather than consumption. High-freedom economies with controlled inflation demonstrate remarkable resilience despite alarming debt ratios – suggesting that quality of governance may ultimately prove more decisive than the raw numbers in determining which nations navigate these turbulent financial waters successfully.”