Countries with the highest public debt 2021

In 2021, Venezuela ranked first among the countries with the highest public debt levels in relation to its GDP, with an estimated debt over three times larger than its GDP. The countries with the highest public debt often have a high level of economic instability, however there are also many developed economies on this list, such as Japan and the U.S., who feature due to their high levels of national borrowing and public spending.

Venezuela's public debt

Since 2010, after a period of uncontrolled public spending, Venezuela's government and population have been facing one of the most severe economic crises seen since the Second World War. The economic situation, exacerbated by political instability and repression, has resulted in widespread starvation, unemployment, and crime, as well as a migrant crisis that has spilled into neighboring countries. The Venezuelan government has grown increasingly authoritarian in the wake of the crisis, and many of its major trading partners, particularly the U.S., have imposed sanctions due to perceived human rights abuses and corruption. The government's continued spending in denial of the crisis saw Venezuela's inflation rate become the highest in the world in 2014, with hyperinflation peaking at over 65,000 percent in 2018, compared to the previous year. The government claimed that hyperinflation ended in early 2022, and the economy is now showing signs of recovery, but it remains to be seen how this will impact national debt.

Japan's public debt

While the United States has the largest national debt in fiscal terms, Japan has the largest relative debt of any developed economy when compared to its GDP. In 2021, the nation’s soaring debt is roughly 12.5 trillion U.S. dollars, while it's GDP is just 5.1 trillion. The Japanese government is currently spending around half of its total tax revenue on servicing its massive debt. Despite this, the yield on 10-year Japanese bonds remains at a surprisingly low level at under 1 percent.