The general assumption by most people is that it will be hard to do the kind of business governments are involved in without these governments incurring some amount of debt. A little debt is good but what happens when the debt becomes more than the Gross Domestic Products. Interestingly, the debt of these countries has been increasing over the years instead of reducing. There are those countries that may appear on the surface to have the best quality life but at the same time they are neck deep in debt. The following are the top five countries with the highest debt.
Unlike other countries that have become debt burden thanks to the recession, Japan’s debt is mainly due to the fact that it decided to remain stagnant for very long. Also efforts by the government to stimulate the economy by buying back billions of dollars in bonds have been met with mixed feelings. However those in the financial sector are doing all to make the most of what this opportunity offers. By 2014, Japan’s GDP debt ratio was 227%.
Greece has been going through crisis for many years and the economic recession only compounded the problem. While the country’s economy has been fluctuating over the years, it is still far from leaving the danger zone when it comes to debt. The country has been forced to implement drastic austerity measures which have had a very detrimental effect on employment in the country. Even Greek stocks have suffered as investors have lost confidence in them. That not notwithstanding, some Greek stocks are still doing well. Presently, the county’s GDP debt ratio is 140% of.
As a member of the European Union, Italy’s present situation of very high debts is worrying to all the other member states. For more than a decade, the country has been in dire straits even with all the measures taken to stimulate economic growth. The country’s GDP debt ratio in 2014 stood at 132%. The government has made efforts to enable funds held by Italians out of the country to be brought back into the country. While this has seen some success, much still has to be done for the country and the government is now willing to privatise some state owned organizations. There are fears that if no drastic measures are taken, the trend of rising debt in Italy will continue.
Portugal’s GDP to Debt ratio has been increasing ever since the nineties and reached its highest in 2014 at 129%. For years the country has not been able to pay its debt without outside help. By 2010 the country was forced to take austerity measures that included steep tax rises and cuts in the salaries of civil servants.
Flashy Singapore may seem like the next heaven but it has its neck deep in debt. The countries debt rose probably due to low interest rates that resulted in a surge in indiscipline borrowing. It is also suspected that expected growth levels did not materialize as forecasted.