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The World's Biggest Debtor Nations

Discussion in 'The Economy' started by Tropo, 1st Apr, 2010.

  1. Tropo

    Tropo Well-Known Member

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    Throughout the financial crisis, many national economies have looked to their government and foreign lenders for financial support, which translates to increased spending, borrowing and in most cases, growing national debt.

    Deficit spending, government debt and private sector borrowing are the norm in most western countries, but due in part to the financial crisis, some nations and economies are in considerably worse debt positions than others.

    External debt is a measure of a nation's foreign liabilities, capital plus interest that the government and institutions within a nation's borders must eventually pay. This number not only includes government debt, but also debt owed by corporations and individuals to entities outside their home country.

    So, how does the US debt position compare to that of other countries? A useful measure of a country's debt position is by comparing gross external debt to GDP. By comparing a country's debt to what it produces, this ratio can be used to determine the likelihood that a country will be able to repay its debt.
    This report takes a look at the world's 75 largest economies to see which ones have the highest external debt to GDP ratio, calculated using the most recent numbers from the World Bank.
    We've listed the top twenty here.

    Who are the world's biggest debtor nations?
    The rankings may surprise you!

    News Headlines
     
  2. try anything once

    try anything once Well-Known Member

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    I would be interested in seeing what the split is between public and private debt.

    Australia looks out of kilter with other figures I have seen on government borrowing as a % of GDP so I suspect we must have a disproportionately high private debt level?
     
  3. Tropo

    Tropo Well-Known Member

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    There must be some info, but I am not aware of it .
     
  4. Chris C

    Chris C Well-Known Member

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    Ask and ye shall receive:

    [​IMG]

    A very long story short is the Australian government has the potential to go on a spending spree if it so chooses, however it would seem that most are concluding that the cost of credit is likely to rise in the future. So it's probably not a wise idea to start increasing government debt at this stage (or any debt levels for that matter).

    :rolleyes:
     
  5. KYC

    KYC New Member

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    So Australian government debt is much lower than any private or business debt then?

     
  6. MrPhoton

    MrPhoton Member

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    Quite surprised to see Australia & Germany in the list...