There are a lot of countries with highest debt to GDP that people might not even realize is part of this list because of the amazing things that they are able to show to the world. There are some countries that just spend too much money on different things that they tend to forget about having to budget their money wisely. The most indebted countries in the world can surprise a lot of people.
It is only normal for some countries to borrow money in order to improve the current economy and to do programs that will increase the overall way of living of people but it seems that there are also some countries who do a lot more than what they are expected to do with the money they have received.
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People usually know just how much they should spend because they already know the feeling of having debt that they do not know how to pay off. This is the same with countries although it seems that there are some countries that just went through a spending spree without thinking about how it can affect them.
There are some rules that have caused some countries to spend more but there are also some rules that were just forgotten just to keep up the standard way of living that people would want to keep up. When the country spends so much money in contrast with its GDP received every year then it is likely that these are countries with highest debt to GDP that will make the list without much effort.
7. Singapore – 97.77%
Although Singapore is known to be one of the countries in Asia with the highest GDPs, it seems that it still has a lot to go through because of its debt. Its economy slowed down a bit a few years back when there were setbacks with their manufacturing services but it has already improved a bit from then.
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6. Belgium – 106.57%
In the past, Belgium used to be a country with so much debt. It even came to a point when it was almost near the 150% mark but over the past few years, it has started to improve with the various things that it changed. What makes it troublesome for Belgium to recover completely is the country’s political instability.
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5. Lebanon – 131.82%
The great thing about Lebanon is that even though its debt is still high, this has already lessened and lowered considerably over the past years. A lot of its budget goes to paying for its debt. What Lebanon needs in order to get out of the list of countries with highest debt to GDP is to have a tax reform and to have higher GDP depending on what it can provide.
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4. Jamaica – 132.82%
The thing about Jamaica is the fact that it did not have a large debt before but it ballooned from the year 1996 probably because its different sectors were hit. Agriculturally, they were changed a lot at that time. The tax policy of Jamaica is in need of revision to help this country recover faster.
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3. Italy – 133.76%
There are already different things that Italy tried to do in order to set back on spending but it seems that a lot of things are being spent on things that are not considered necessary. There are still some debates going on regarding the taxes because some are saying that it should be increased while others do not agree.
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2. Greece – 172.73%
It seems that the debt of Greece has received an all time low because of its recent problems with its economy. Although it already started years ago because of debt sustainability, a lot of things are still being done to hopefully help the country.
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1. Japan – 246. 14%
Mainly the reason why the debt of Japan has risen a lot since the 90s is because of the housing bubble at the same time, it has also experienced major calamities with the earthquakes and tsunamis that the country has experienced .It also had some major problems that the country needed to solve immediately hence, the very high debt. The high amount of debt that it has right now, it will be hard to get rid of that debt anytime soon.
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There are different things that countries with highest debt to GDP can do in order to decrease their debt. A tax reform is always necessary and very smart spending by the government can help tremendously as well. A percentage may be allotted to pay for the debt each time payment is needed.
