Statistics -> Debt in Selected Countries
Debt in Selected Countries
The table below shows the total debt as a % of GDP, and debt per person in selected countries for 2011. The information is gathered from sources which are listed below the table.
What is the significance of these numbers?
The government gross debt is used as an indicator of the financial stability of the country.
Once the government gross debt nears 100% of GDP, financial alarm bells start to ring, and purchasers of that country's debt (t-bills, bonds) may demand higher interest rates. This has happened in 2011 with Portugal, Iceland, Ireland, Italy, and Greece. Another factor affecting the interest rates is the amount of debt held by citizens of the country, vs the amount of debt held outside of the country.
Japan is an example where 95% of the debt is held by its own citizens, which helps stabilize their debt market.
The US debt has now reached 100% of GDP, and their debt was downgraded in August 2011 by Standard & Poor's (S&P) to AA+ from AAA. AAA is the highest rating.
According to the International Monetary Fund (IMF) World Economic Outlook Database for April 2022 the government gross debt for 2021 for:
(1) the United States is 132.6% of GDP.
(2) Canada is 112.1% of GDP.
Tax Tip: Reduce your own debt, and pressure your government to reduce its debt.
Revised: July 07, 2022
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca