5 Countries with the Highest Debt to GDP Ratios

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1. Japan

  • Current Debt-to-GDP Ratio: ~230% – 242%
  • Trend Since 2023: Stable / Slight Decrease
  • Analysis: Japan remains the world’s most indebted nation. However, 2026 marks a turning point: as the Bank of Japan finally raises interest rates to 1.0%–1.5%, the government’s interest payments are projected to double by 2029. While nominal GDP growth has finally returned, the cost of servicing this mountainous debt will be the defining economic challenge for Japan’s aging society over the next decade.

READ NEXT: 25 Countries with the Highest Debt to GDP Ratios in 2023.

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