Debt
Around the World

A visual exploration since 1950

The significance of debt in the global economy cannot be overstated. High levels of debt, especially if unsustainable or concentrated in vulnerable sectors, can undermine economic growth and stability. Monitoring debt levels and patterns is therefore crucial for policymakers seeking to identify potential risks to economic stability and take appropriate action to address them. Moreover, understanding debt is essential for assessing the overall health of the financial system and identifying systemic risks. This data visualization of global debt patterns provided by the IMF's Global Debt Database is an important tool for understanding the distribution of debt around the world. The visualization allows users to explore the percentage of GDP represented by both central government debt and general government debt in different countries and regions, broken down by various categories such as nonfinancial corporate debt, private debt, and household debt. The size of each data point in the visualization indicates the type of debt, providing a clear and accessible representation of global debt patterns. By making this data easily accessible and interpretable, the visualization helps to promote greater awareness and understanding of global debt trends, and supports informed decision-making by policymakers and analysts.

Some interesting insights

  • Government debt levels vary widely across countries and regions, with some countries having debt levels well above 100% of GDP, while others have relatively low levels of debt. For example, Japan and Greece have the highest levels of government debt as a percentage of GDP, while several countries in Africa and the Middle East have relatively low levels of debt.
  • Debt levels among different types of debtors also vary widely. Nonfinancial corporate debt is generally higher than household debt in most countries, while the opposite is true in a few countries such as China and Turkey.
  • Debt levels are generally higher in high-income countries compared to low- and middle-income countries. However, there are exceptions to this trend, such as China and India, which have relatively high levels of government debt despite being classified as middle-income countries.
  • Some regions, such as Latin America and the Caribbean, have experienced a significant increase in government debt levels in recent years, potentially indicating a trend towards higher debt burdens in these regions.
  • Europe has the highest average government debt as a percentage of GDP among the regions included in the visualization. This is due in part to the debt crisis that affected many European countries in the aftermath of the 2008 financial crisis.
  • Asia has the highest average nonfinancial corporate debt as a percentage of GDP among the regions included in the visualization. This reflects the fact that many Asian countries have experienced rapid economic growth in recent years, which has led to increased borrowing by corporations to finance investment and expansion.
  • North America has the highest average household debt as a percentage of GDP among the regions included in the visualization. This may reflect the fact that home ownership is relatively common in North America, and many households have taken on significant debt to purchase homes.

  • Sub-Saharan Africa has the lowest average government debt as a percentage of GDP among the regions included in the visualization. However, many countries in the region still face significant challenges in managing their debt due to factors such as limited access to capital markets, vulnerability to external shocks, and low levels of economic development.
  • Latin America and the Caribbean has the highest average private debt as a percentage of GDP among the regions included in the visualization. This may reflect the fact that many households and businesses in the region have taken on significant debt to finance consumption and investment, respectively. However, high levels of private debt can also pose risks to financial stability in the region.
  • Japan has the highest level of government debt as a percentage of GDP among the countries included in the visualization. As of 2020, Japan's government debt was estimated to be over 250% of its GDP.
  • Several European countries, including Greece, Italy, and Portugal, have relatively high levels of government debt as a percentage of GDP. These countries have struggled with debt sustainability in the past, and have required financial assistance from international organizations such as the IMF and the European Union.
  • Some countries with high levels of household debt, such as Australia and Canada, also have relatively high levels of government debt. This may reflect the fact that households in these countries have taken on significant debt to purchase homes, which has in turn contributed to higher levels of government debt due to the need to support the housing market.
  • Many low- and middle-income countries, particularly those in Sub-Saharan Africa, have relatively low levels of government debt as a percentage of GDP. However, these countries may still face significant challenges in managing their debt, due to factors such as low levels of economic development, limited access to capital markets, and vulnerability to external shocks such as commodity price fluctuations.
  • Some countries, such as China and India, have relatively high levels of nonfinancial corporate debt as a percentage of GDP. This may reflect the fact that these countries have experienced rapid economic growth in recent years, which has led to increased borrowing by corporations to finance investment and expansion.

Created by Yuna Luzi | LinkedIn | Data: Source of data | LICENSE