Magazine article Geographical

Which Country Has the Largest Debt?

Magazine article Geographical

Which Country Has the Largest Debt?

Article excerpt

When it comes to the world's largest debtor, you don't need to look to the developing world. The USA is the world leader in borrowing, with a staggering US$8 trillion (4.3 trillion [pounds sterling]). And the sum is rising every day. If George W Bush doesn't rein in spending or raise taxes, the USA's gross national debt will have grown to more than US$10 trillion by the end of his second term.

Despite the huge amounts of money involved, the USA isn't in desperate trouble because its economy is so big. Right now, US debt stands at 65 per cent of gross domestic product (GDP)--the total market value of all goods and services produced in a year--a level not seen since the mid-1950s. But it's nothing compared to the debt-to-GDP ratios of some developing nations.

According to the International Monetary Fund, small economies can sustain debts of up to about 50 per cent of GDP before their economic growth is suppressed. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.