10 Countries With the Highest Debt-to-GDP Ratios in 2026

October 16, 2026 — The world is entering a period of mounting fiscal pressure as governments struggle to balance rising borrowing costs with spending demands and slowing economic momentum in several regions.

The International Monetary Fund (IMF) has warned that global public debt could reach 100% of world gross domestic product by 2029, approaching levels last seen in the aftermath of World War II.

But the global debt picture is far from uniform.

Some countries carry exceptionally high government debt because of prolonged fiscal deficits, economic disruption, or demographic pressures. Others report large gross debt figures while maintaining substantial financial assets.

The IMF's October 2026 World Economic Outlook projections reveal how different those circumstances can be.

Sudan tops the global debt-to-GDP rankings with a projected ratio of 334.41%, followed by Japan at 199.37% and Singapore at 166.42%.

The figures raise important questions about sovereign debt sustainability, fiscal resilience, and whether high borrowing automatically signals financial instability.

Global Government Debt Is Approaching a Historic Threshold

According to the IMF's 2026 fiscal assessments, global government debt reached approximately 94% of GDP in 2025 and is projected to climb toward 100% by 2029.

Several pressures are contributing to this trend.

Governments are spending more on healthcare, social protection, national security, and infrastructure while facing higher costs to finance existing obligations.

Elevated sovereign bond yields have also made refinancing more expensive.

For heavily indebted governments, rising interest payments can absorb revenue that might otherwise support public services or productive investment.

The IMF has consequently urged policymakers to establish credible fiscal strategies before financial markets force more disruptive adjustments.

However, the urgency varies considerably between economies, reflecting differences in borrowing conditions, revenue capacity, debt structure, and financial assets.

The 10 Highest Government Debt-to-GDP Ratios in 2026

The following ranking uses the IMF's October 2026 World Economic Outlook projections for general government gross debt relative to GDP.

These are projected ratios for 2026, not final year-end outcomes. They cover gross general government debt rather than all public and private-sector liabilities.

Sudan: When Economic Collapse Pushes Debt Ratios Higher

Sudan's estimated debt-to-GDP ratio of 334.41% places it well above every other country in the ranking.

The figure suggests that the government's gross debt stock is more than three times the country's projected annual economic output.

Sudan has experienced severe economic and humanitarian disruption since armed conflict intensified in April 2023.

The World Bank estimates that the economy contracted by approximately 29.4% in 2023 and another 14% in 2024.

Infrastructure damage, disrupted trade, weakened public services, and declining productive activity have all contributed to the deterioration.

A critical distinction is that debt ratios can rise because the economy shrinks, not only because governments borrow more.

When GDP contracts sharply, the existing debt stock becomes much larger relative to national output.

Sudan therefore illustrates how conflict can worsen fiscal vulnerabilities by damaging both economic production and the government's capacity to generate revenue.

Japan: The Challenge of Financing an Aging Society

Japan's projected ratio of 199.37% makes it the second-highest country on the list.

Its debt burden reflects decades of government borrowing and significant fiscal challenges associated with population aging.

Pension obligations, medical expenses, and long-term care costs are expected to remain important spending pressures.

The normalization of interest rates introduces another challenge as government borrowing costs increase.

However, Japan's financial structure provides characteristics that distinguish it from countries facing severe external financing constraints.

The government has access to a deep domestic bond market, and much of its debt is denominated in Japanese yen.

This reduces certain foreign-currency risks, although it does not eliminate the costs associated with sustaining large public debt.

In its April 2026 assessment, the IMF emphasized the importance of maintaining a credible medium-term fiscal framework as demographic and interest-related expenditures increase.

Singapore: Why Gross Debt Does Not Tell the Whole Story

Singapore is perhaps the most instructive example of why government debt statistics require context.

Despite ranking third with a projected gross debt ratio of 166.42% of GDP, the country maintains a substantial positive net asset position.

According to Singapore's Ministry of Finance, much of the government's borrowing serves purposes such as developing domestic debt markets and managing long-term financial reserves.

Most government borrowing proceeds are invested rather than used to pay recurring operating expenses.

The country's financial assets also exceed its outstanding liabilities.

As a result, Singapore can simultaneously report a high gross debt-to-GDP ratio and possess a comparatively strong sovereign balance sheet.

The distinction between gross debt and net financial assets is therefore essential.

A ranking based solely on liabilities does not capture the assets available to support a government's financial position.

The United States and Europe Face Different Fiscal Pressures

Advanced economies also feature prominently in the IMF rankings.

The United States is eighth, with projected government gross debt equivalent to 126.79% of GDP.

Its fiscal outlook reflects substantial federal spending commitments, continuing deficits, and growing interest obligations.

Although the United States benefits from deep capital markets and the international role of the US dollar, the IMF has warned that rising debt and borrowing costs require policy attention.

Three major European economies also appear in the top ten.

Italy ranks fifth with projected debt of 137.87% of GDP, Greece follows at 136.04%, and France stands at 118.46%.

Their fiscal challenges differ, but each must balance spending priorities, borrowing requirements, and economic growth.

Within the euro area, debt sustainability is influenced by domestic fiscal policy as well as broader monetary and financial conditions.

Smaller Economies Face Their Own Vulnerabilities

Bahrain, the Maldives, and Libya complete the remaining positions in the top ten.

Bahrain's projected ratio stands at 162.84% of GDP, while Libya is estimated at 125.19%.

The Maldives, with an estimated ratio of 130.67%, provides another example of how financing pressures can emerge even in an economy supported by a globally important tourism industry.

In June 2026, IMF staff warned that the Maldives continued to face elevated fiscal deficits and public debt, alongside high risks of external and overall debt distress.

The Fund emphasized the importance of strengthening revenue collection, improving spending efficiency, and addressing financial vulnerabilities.

The case demonstrates that debt sustainability depends not only on headline debt levels but also on foreign-exchange availability and the timing of debt repayments.

Does a Higher Debt Ratio Mean a Greater Risk of Default?

Not necessarily.

Debt-to-GDP is an important indicator, but it is not a complete measure of sovereign financial health.

A government's ability to service its debt depends on several additional factors:

• Revenue capacity: How much income the government generates through taxes and other sources.

• Interest burden: The cost of maintaining and refinancing outstanding obligations.

• Debt maturity: When existing loans and bonds must be repaid.

• Currency exposure: Whether debt is denominated in domestic or foreign currencies.

• Financial assets: Whether the government holds reserves or other assets that offset liabilities.

• Market confidence: Whether lenders remain willing to provide financing on sustainable terms.

Countries with similar gross debt ratios can therefore face substantially different levels of financial risk.

This explains why Singapore's debt position cannot be assessed in the same way as Sudan's, despite both reporting ratios significantly above 100%.

The Bigger Challenge: Preserving Fiscal Flexibility

The IMF's warning highlights a difficult policy trade-off.

Governments need sufficient spending to support economic development, public services, and national resilience.

But excessive borrowing, particularly when financing costs rise, can narrow future policy choices.

Higher interest payments may leave less room for education, healthcare, infrastructure investment, and emergency responses.

On the other hand, poorly designed fiscal tightening can weaken growth and make the debt burden harder to manage.

A credible long-term strategy requires governments to improve revenue collection, prioritize efficient expenditure, and maintain borrowing structures that limit financial vulnerabilities.

The latest country rankings offer an important reminder: a large debt ratio attracts attention, but the quality of a country's financial management ultimately shapes its fiscal resilience.

Which matters more when assessing a country's financial health: its total debt burden or its ability to manage and repay that debt?

Disclaimer: This article is intended for financial news and educational purposes. The 2026 country figures are IMF projections and may change as economic data are updated.