As of 2025, government debt continues to serve as a key measure of countries’ fiscal health, reflecting spending priorities, borrowing strategies, and economic management.
The top ten countries with the highest government debt showcase a mix of mature economies and rapidly growing markets.
According to the International Monetary Fund’s World Economic Outlook (October 2025), these nations face varying challenges in managing debt sustainability while promoting growth.
1.United States – $38.27 trillion
The U.S. maintains the world’s largest government debt, largely due to decades of budget deficits and substantial fiscal stimulus measures. Despite its size, strong investor confidence and the global demand for U.S. Treasury securities keep borrowing costs manageable.
2. China – $18.68 trillion
China’s debt reflects extensive infrastructure investment and local government borrowing. Efforts to stabilize economic growth amid global uncertainties have contributed to rising debt levels, although the country continues to enjoy significant foreign reserves and investment inflows.
3. Japan – $9.83 trillion
Japan has one of the highest debt-to-GDP ratios globally, driven by decades of stimulus spending and an aging population. Low interest rates have helped the government finance this debt, but long-term demographic challenges remain a concern.
4. United Kingdom – $4.09 trillion
The U.K.’s debt is influenced by post-pandemic recovery spending and social program commitments. Fiscal policies aim to balance economic growth with ongoing obligations, including healthcare, pensions, and infrastructure projects.
5. France – $3.92 trillion
France carries substantial debt due to robust social welfare programs and public sector investments. While debt servicing costs remain manageable, slow economic growth poses ongoing fiscal challenges.
6. Italy – $3.48 trillion
Italy faces high borrowing costs and structural economic challenges. Persistent budget deficits, combined with efforts to stimulate growth, have kept government debt elevated for years.
7. India – $3.36 trillion
India’s debt reflects infrastructure expansion, social welfare programs, and economic reforms. Despite rising borrowing, strong economic growth prospects help the country manage fiscal pressures.
8. Germany – $3.23 trillion
Germany has maintained fiscal discipline while supporting industrial sectors and social programs. Debt levels are stable relative to the economy, and borrowing remains affordable due to low interest rates.
9. Canada – $2.60 trillion
Canada’s government debt increased following pandemic-era relief measures and ongoing investments in healthcare and social programs. Fiscal strategies aim to balance growth and debt sustainability.
10. Brazil – $2.06 trillion
Brazil faces high interest rates and fiscal pressures while striving to stabilize its economy. Debt management remains a key challenge as the government seeks to support development initiatives and social spending.
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