Top 10 Most Indebted Countries in 2025 — Where Do India and the US Stand?

Global debt continues to surge in 2025, reflecting ongoing fiscal pressures faced by both advanced and developing economies. According to the International Monetary Fund (IMF), worldwide public debt— which had soared to 98.9% of global GDP during the COVID-19 pandemic in 2020— is projected to climb to 102.3% by 2030.

As of October 2025, IMF’s World Economic Outlook data reveals that the world’s average general government gross debt stands at 94.7% of GDP, slightly higher than 92.4% in 2024. This growing debt burden is linked to sluggish growth, high interest rates, and post-pandemic spending, putting pressure on many economies to balance fiscal recovery and stability.

Top 10 Countries with the Highest Debt-to-GDP Ratio in 2025

Here’s the list of countries carrying the heaviest debt burdens compared to their national GDPs as of October 2025, according to IMF Datamapper.

Source: IMF Datamapper, World Economic Outlook (October 2025)

1. Japan – 229.6% of GDP

Japan remains the most indebted country in the world, with debt levels exceeding 229% of GDP.
This massive debt stems from decades of low economic growth, deflationary pressures, and an ageing population that requires high government spending on pensions and healthcare.
Despite this, Japan’s debt is largely domestically held, which limits immediate risk to global financial markets.

2. Sudan – 221.5% of GDP

Sudan’s debt crisis is the result of years of political instability, internal conflict, and economic mismanagement.
With limited exports and high dependence on foreign aid, the country struggles to stabilize its currency and manage public spending, pushing its debt levels to one of the world’s highest.

3. Singapore – 175.6% of GDP

At first glance, Singapore’s high debt-to-GDP ratio may appear alarming. However, the city-state’s debt is primarily a result of its unique fiscal model. The government issues bonds not to finance deficits but to develop domestic capital markets and support sovereign wealth funds like GIC and Temasek. Thus, Singapore remains one of the world’s most financially secure nations despite its high nominal debt.

4. Greece – 146.7% of GDP

Greece, once the epicenter of Europe’s sovereign debt crisis, continues to maintain a high debt-to-GDP ratio.
Although the economy has recovered significantly since the 2010s bailout programs, public debt remains elevated due to structural challenges and limited revenue growth.

5. Bahrain – 142.5% of GDP

Bahrain’s debt levels have climbed due to reliance on oil revenues and rising fiscal deficits.
Despite reforms and regional financial support, the nation continues to face economic vulnerability linked to fluctuating global energy prices.

6. Italy – 136.8% of GDP

Italy’s debt burden reflects decades of sluggish economic growth and high public spending.
Although Italy remains one of Europe’s largest economies, its aging population and slow reforms make debt reduction a persistent challenge.

7. Maldives – 131.8% of GDP

The Maldives’ economy relies heavily on tourism, and pandemic-related disruptions led to a sharp rise in borrowing.
The government continues to face fiscal strain due to limited diversification and external debt obligations.

8. United States – 125% of GDP

The United States, the world’s largest economy, ranks eighth globally in debt levels.
High borrowing for defense, social programs, and pandemic recovery has pushed U.S. debt beyond $34 trillion.
While the U.S. benefits from global confidence in the U.S. dollar and Treasury bonds, sustained high debt raises long-term fiscal concerns.

9. Senegal – 122.9% of GDP

Senegal’s debt increase reflects heavy infrastructure investments and borrowing to boost development.
Though its economy shows growth potential, dependence on external loans has made public finances increasingly fragile.

10. France – 116.5% of GDP

France’s debt continues to rise due to increased welfare spending, energy subsidies, and slow economic growth.
Despite efforts to reform its budget structure, the government faces resistance to austerity measures and pension reforms.

Where Do India, China, and Other Major Economies Stand?

• United States: 125% of GDP — ranks 8th globally.
• China: 96.3% of GDP — ranks 21st globally, reflecting moderate borrowing and fiscal expansion.
• India: 81.4% of GDP — ranks 35th, relatively stable compared to advanced economies.

India’s government has maintained a cautious fiscal approach, focusing on infrastructure spending, capital investment, and deficit control, keeping debt under manageable levels.

Global Outlook: What Rising Debt Means for the World

According to the IMF, about 68% of countries are now facing higher debt burdens in 2025 than the previous year.
This trend is concerning, as rising public debt may lead to:

• Higher borrowing costs,
• Reduced fiscal flexibility, and
• Greater risk of economic slowdown.

To counter this, the IMF urges nations to strengthen fiscal discipline, promote economic growth, and reduce budget deficits over the coming years.