HIBAPRESS
Public debt is a key economic indicator, as it represents the total financial obligations borne by the government of any country, whether in the form of bonds or other securities obtained from local or international sources. Governments use public debt to cover large expenditures and close the deficit in the annual budget.
To effectively measure the size of this burden, the ratio of public debt to gross domestic product (GDP) is calculated, which allows for an analysis of the country's ability to service its debts compared to the size of its economy, and gives a clearer picture of the soundness of the financial situation.
According to "focus-economics" forecasts, there is a list of ten countries that will record the highest public debt-to-GDP ratios in 2025, including developed and developing countries, with Arab countries among the names.
1. Japan: Huge debt with smart local management
The public debt of Japan is expected to reach 242% of GDP in 2025, after it was only about 50% in 1990. The reason is due to the large government spending to stimulate the economy after the collapse of the asset price bubble, in addition to the aging population, which increased care and pension expenses.
Despite this, the debt does not threaten the Japanese economy in the short term, because most of the debt is owned by local investors and institutions, including the Bank of Japan. However, the rising costs of debt servicing remain a long-term weakness.
2. Singapore: Strategic debt
Singapore's public debt is expected to be 173% of GDP, but it is not the result of financial distress, but a deliberate government policy to strengthen the local debt market and support the mandatory savings system. Singapore holds financial surpluses and large reserves, which makes this debt not economically worrying and reflects strategic government management.
3. Eritrea: Debt resulting from conflicts and isolation
Eritrea's public debt is estimated at 210% of GDP, as a result of long military conflicts and restrictive economic policies, in addition to international isolation and sanctions. This debt constitutes a real constraint on development and increases the country's dependence on foreign aid.
4. Greece: Gradual recovery after the crisis
The public debt ratio in Greece reached 149% of GDP, after decades of uncontrolled spending and tax evasion. Despite the significant decline since the financial crisis, the debt still constitutes a financial burden and requires careful management of financial policies.
5. Italy: Accumulation of economic structure debts
Italy's public debt ratio is 138% of GDP in 2025. This is due to slow economic growth and high spending on pensions and social care, which makes the country the weakest financial link in the Eurozone.
6. Sudan: Debts resulting from conflicts and separation
Sudan's public debt is expected to reach 128% of GDP, as a result of internal conflicts, economic mismanagement, and the separation of South Sudan in 2011, which weakened oil revenues. This debt restricts investment and hinders economic development.
7. Bahrain: Pressure on spending and declining revenues
Bahrain's public debt ratio doubled between 2012 and 2023 due to falling oil prices and rising public spending, with huge requirements to invest in economic diversification, with the expected debt in 2025 reaching 131% of GDP.
8. Maldives: Infrastructure loans and the Covid-19 pandemic
The Maldives' public debt increased due to large loans for infrastructure projects, such as the Friendship Bridge and the expansion of the airport, in addition to the impact of the Covid-19 pandemic on tourism. The debt-to-GDP ratio is expected to reach 125% in 2025.
9. United States: The largest debt in the Group of Seven
The United States' public debt has increased due to tax cuts, rising care spending, and the Covid-19 pandemic. Despite the strength of the dollar and its reserve status, the debt burden continues to rise, with an expected 124% of GDP in 2025.
10. France: Accumulation of debt for decades
Since 1975, France has recorded a continuous budget deficit, which has led to the accumulation of public debt, which is expected to reach 116% of GDP in 2025. The financial crisis and the Covid-19 pandemic increased the burden, and debt continues to pose a risk to financial stability.
