List of Top 10 Richest Countries in the World with Biggest Debt Ratios

• The world’s richest nations, including the United States, Singapore, and the United Kingdom, also rank among the most heavily indebted globally
• The United States leads with $25.8 trillion in external debt and a nearly 96% debt-to-GDP ratio, despite strong economic freedom
• According to Nathan Nolan of Falcon Funded, the ability of economies to handle high debt loads depends more on governance, inflation control, and market freedoms than raw debt figures alone

Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.

Despite commanding the largest and most advanced economies on the planet, the world’s richest nations are also some of its most indebted.

The United States tops the list with an eye-popping external debt of $25.8 trillion (about KSh 3.36 quadrillion), followed by financial powerhouse Singapore, and the United Kingdom.

Although these economies remain influential globally, their ballooning debt levels raise red flags about long-term fiscal management.

The study emphasizes that absolute debt isn’t the sole threat—it's how that debt compares to economic output and how well countries manage inflation and maintain market freedoms.

According to Nathan Nolan, founder of Falcon Funded, “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.”

Daniel Kathali, an economist, told TUKO.co.ke that a lower GDP-to-Debt ratio generally signals financial health, while a higher ratio may raise red flags about a country's fiscal stability.

"When the debt-to-GDP ratio is low, it often brings several advantages. First, it boosts investor confidence, as it suggests responsible fiscal management. This can lead to lower borrowing costs because investors perceive less risk in lending to the government. Additionally, a manageable debt load means the government spends less on interest payments and has more resources available for infrastructure, education, and other productive investments.

It also allows for greater policy flexibility, enabling policymakers to respond to economic challenges without the looming threat of debt crises. Furthermore, credit rating agencies tend to reward countries with lower debt ratios, which helps maintain or even improve their credit ratings, again lowering the cost of borrowing," Kathali explained.

He noted that a high debt-to-GDP ratio can have serious downsides as it often leads to higher borrowing costs, as lenders demand higher interest rates to offset the increased risk of default.

Top 10 Richest Countries in the World with biggest debt ratios

1. United States

The GDP in the United States was worth $27.72 trillion (KSh 3.582 quadrillion) in 2023, according to official data from the World Bank.

The US remains the richest and most indebted nation, with nearly $26 trillion (KSh 3.36 quadrillion) in external debt and a debt-to-GDP ratio of nearly 96%.

Moderate inflation and relatively strong economic freedom keep the economy afloat, but the sheer scale of obligations exerts global financial pressure.

Notably, President Donald Trump's administration has taken steps to cut the government's spending by reducing expenditure and cutting foreign aid.

2. Singapore

Boasting the highest debt-to-GDP ratio at a staggering 418.87%, Singapore offsets its vulnerability with low inflation (0.9%) and the strongest economic freedom score (84.1) among major global economies.

3. United Kingdom

The UK carries over $10.5 trillion (KSh 1.356 quadrillion) in debt, with obligations that are 2.5 times the size of its economy.

Economic freedom is modest, and inflation stands at 2.8%, placing additional pressure on households and the treasury.

4. France

France has $8.04 trillion (KSh 1.039 quadrillion) in debt, with a debt-to-GDP ratio of 260.77%. Despite low inflation (0.8%), its economic freedom is weaker.

5. Switzerland

External debt in Switzerland is $2.32 trillion (KSh 299.74 trillion), more than 2.5 times its GDP.

However, Switzerland’s ultra-low inflation (0.3%) and strong economic governance help buffer its financial stress.

6. Germany

The Gross Domestic Product (GDP) in Germany was worth $4.525 trillion in 2023. It is Europe’s biggest economy keeps a tighter balance, with a debt-to-GDP ratio of 160.56% and moderate inflation (2.2%).

7. Belgium

Carrying $1.65 trillion (KSh 213.18 trillion) in debt, Belgium struggles with high inflation (2.9%) and a debt load 2.5 times its GDP of $644.78 billion (KSh 83.32 trillion) in 2023, according to official data from the World Bank.

8. Finland

External obligations at $686.77 billion (KSh 88.74 trillion) make up 232.80% of Finland's GDP of $295.53 billion (KSh 38.19 trillion) in 2023.

9. Argentina

The Gross Domestic Product (GDP) in Argentina was worth $646.08 billion (KSh 83.49 trillion) in 2023.

It is the only South American nation in the list and has a relatively low debt-to-GDP ratio (46.47%), but suffers from extreme inflation (55.9%) and poor economic freedom, driving stress levels upward.

10. Canada

Canada had a GDP of $2.142.47 billion (KSh 276.78 trillion) in 2023 and now has a $3.16 trillion (KSh 408.27 trillion) in debt and a manageable 145.70% debt-to-GDP ratio.

Canada benefits from strong economic freedom and moderate inflation (2.3%), earning it the lowest financial stress score in the top 10.

Which are the strongest currencies in the world?

In other news, the Kuwaiti Dinar is the strongest currency in the world in 2025, valued at 3.25 USD, driven by the country’s vast oil reserves, small population, and a robust sovereign wealth fund.

It is followed by the Bahraini Dinar and Omani Rial, both supported by oil exports and pegged to the US dollar for stability.

Other strong currencies include the Jordanian Dinar, British Pound, Falkland Islands Pound, Gibraltar Pound, Cayman Islands Dollar, Swiss Franc, and Euro.

Among the strongest currencies in Africa, the Tunisian Dinar leads, bolstered by sound monetary policies and tourism, followed by the Libyan Dinar, Moroccan Dirham, and others, reflecting the economic health and policy decisions of their respective countries.

Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.

Source: TUKO.co.ke