Japan tops the list of ten countries that carry the most debt burden, followed by Saint Kitts and Nevis, Lebanon, Zimbabwe and Greece. The debt burden of this country becomes heavier after March’s nuclear disaster. The severe earthquake and tsunami that hit Japan are expected to cost over $ 300 billion.
Japan is the country with the highest debt-to-GDP ratio of any country in the world. The Japanese government has been in debt since the housing bubble in the 90s. Especially, the debt burden becomes heavier after the the worst natural disaster in history hit this nation in March 2011. The Japanese government has to pile billions of dollars of fresh borrowing on top of a debt load. However, Japan has a high savings rate which makes it easier for the government to finance the debt. 90% of Japanese debt comes from Japanese individuals.
Debt as percent of GDP: 225.8
Saint Kitts and Nevis
The federal two-island nation expects to get creditor cooperation in restructuring its public debt stock, which is said to be a total of about $ 1 billion. However, treasury bills are not a part of the plan.
Debt as percent of GDP: 196.3
According to IMF, the country’s debt has been falling down but half of its budget revenues go towards interest payments on its immense debt burden. Lebanon’s public debt is now at $ 52.7 billion.
Debt as percent of GDP: 150.7
Uncheck spending of President Mugabe had raised Zimbabwe’s debt burden. The country even asked for debt relief as part of the Heavily Indebted Poor Countries program in 2010. The IMF said that Zimbabwe was under debt stress.
Debt as percent of GDP: 149
Though the country has passed new austerity measures and been provided a second bailout, its default reportedly looks more likely. Greece’s public debt is expected to rise in 2012 before easing in 2013.
Debt as percent of GDP: 144
The country’s economy is said to get a strong return and CDS (Credit Default Swap) on its debt has eased 14% this year. Ratings agencies maintain their junk status on Iceland with a population of about 320,000.
Debt as percent of GDP: 123.8
The island country saw a debt burden growing between 1996 and 2003 as its financial sector took a hit and a drought hurt the agricultural production. Jamaica even introduced the Jamaica Debt Exchange (JDX) program to restructure its domestic debt.
Debt as percent of GDP: 123.2
At the end of April, Italian public debt is said to be a total of €1.89 trillion. Prime Minister Silvio Berlusconi has survived a confidence vote on a €40 billion austerity package to help this country avoid becoming the next domino to fall in Europe.
Debt as percent of GDP: 119
Singapore’s low debt-service ratio, for example ratio of debt service payments to that of its export earnings, has been attributed to low interest rates. Singapore is also among the nations that are under debt stress.
Debt as percent of GDP: 102.4
To prevent contagion of fears and keep calm markets, Belgium’s caretaker government announced better-than-expected budget deficit projections of 3.3%, instead of previous estimates of 3.6%. This nation’s debt is forecasted to peat at 98.3% of GDP in 2013.
Debt as percent of GDP: 98.6
Greece’s Debt Burden
Jolie Crussel, an economic expert, is keen on analyzing the economic situations in the world. Currently, she often delivers lectures on economic solutions to students and provides advice for many firms.
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