We are now living in a world where interest rates are super-low, even negative in some cases, across some of the richest nations. This means it is cheaper for people and governments to service their debts while also promoting spending. The World Economic Forum's Global Competitiveness Survey looks at the financial health and risks of countries around the world. One of the most interesting and important rankings is actually the level of government debt. By looking at level of gross government debt as a percentage of GDP, it can indicate how able a country is to pay back debts without incurring further debt. Basically, the lower the debt-to-GDP ratio the better. Insidermonkey experts made a list of 10 countries that have the most debt in 2017.
Nevertheless, a country’s national debt is different from the debt that consumers typically take on via credit cards or their banks. Government debt is the account of all money that a nation’s central government has borrowed, but not yet paid back with taxes collected. A government goes into debt when it fails to collect enough revenue and taxes to cover spending. That shortfall is called a deficit, but it adds to the national debt. Low interest rates mean cheaper repayments, which makes it easier for governments, corporations and individual to borrow and service their debts. When a country’s national debt is reported, it’s a measure of the total amount a central government has borrowed and needs to repay. If you feel interested you can also check out our list of 7 Countries with Highest Debt to GDP.
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