What country is number 1 in debt?

The United States has the number one highest government debt in absolute dollar terms (over $38 trillion in 2025), followed by China and Japan, though when measured as a percentage of Gross Domestic Product (GDP), Japan and other countries often rank higher, with the U.S. around 120-125% of GDP. The U.S. debt continues to grow, driven by spending on entitlements and crises like the pandemic, but its status as the world's reserve currency helps manage borrowing costs.

Which country has the highest debt?

The United States has the largest national debt in absolute dollar terms, with figures nearing $38 trillion in late 2025, followed by China and Japan. However, when debt is measured as a percentage of economic output (debt-to-GDP), Japan has the highest ratio (over 230%), indicating a greater burden relative to its size, with other high-ratio countries including Greece and Italy.
 

What rank is America in debt?

The United States has the largest external debt in the world. The total amount of U.S. Treasury securities held by foreign entities in December 2021 was $7.7 trillion, up from $7.1 trillion in December 2020. Total US federal government debt breached the $30 trillion mark for the first time in history in February 2022.

Which country has zero debt?

As the world's biggest gambling hub, Macao SAR has zero debt, bolstered by billions in gaming revenue and healthy financial reserves. Liechtenstein ranks in second, with virtually no debt and the only country in Europe ranking in the top 10.

Who is in more debt, the US or China?

Yes, China's total national debt (government, corporate, and household) as a percentage of GDP is now generally considered higher than the U.S., though the U.S. has a much larger absolute dollar amount of government debt; China's debt, especially local government and SOE debt, has surged, reaching over 300% of GDP, exceeding the U.S.'s debt-to-GDP ratio and posing significant economic risks due to reliance on credit-fueled growth, state-owned enterprise leverage, and property sector issues. 

Why Every Country Is in Debt? And Who Do They Owe?

Who owns over 70% of the U.S. debt?

Who owns the most U.S. debt? Around 70-80 percent of U.S. debt is held by domestic financial actors and institutions in the United States. U.S. Treasuries represent a convenient, liquid, low-risk store of value.

What would happen if China sold U.S. debt?

Since the U.S. dollar has a variable exchange rate, however, any sale by any nation holding huge U.S. debt or dollar reserves will trigger the adjustment of the trade balance at the international level. The offloaded U.S. reserves by China will either end up with another nation or will return to the U.S.

Can the USA get out of debt?

There are a number of methods to reduce the U.S. national debt that go beyond raising taxes and cutting discretionary spending. One of the most controversial is to open the nation's borders to more immigration, kick-starting entrepreneurship and consumption.

Who owes the US the most money?

The U.S. owes the most money to its own domestic investors and government entities, holding the largest portion of its national debt, but among foreign countries, Japan is the largest holder of U.S. debt, followed by the United Kingdom and China, who consistently rank as the top foreign creditors. 

Does Russia have a national debt?

Yes, Russia has a national debt, but it's relatively low compared to many developed countries, with its government debt to GDP ratio hovering around 16-20% in recent years (2023-2024), though it can fluctuate, and the country maintains significant cash reserves, meaning most of its debt is domestic. While Russia's total gross debt includes substantial private (corporate) debt, its public debt remains manageable, with low external debt and large reserves, making it financially resilient despite sanctions, notes The Moscow Times and Trading Economics. 

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

Has America ever paid off its debt?

Yes, the U.S. paid off its entire national debt for the only time in history on January 1, 1835, under President Andrew Jackson, primarily from land sales and budget surpluses, but it was short-lived, with debt reappearing quickly and growing again due to economic events like the Panic of 1837, leading to continuous borrowing since. 

Who does the US owe 36 trillion to?

The U.S. owes its $36 trillion national debt to a mix of domestic investors (like banks, mutual funds, and individuals), U.S. government accounts (like Social Security), the Federal Reserve, and foreign investors, with Japan, the UK, and China being the largest foreign holders, primarily through purchasing U.S. Treasury bonds. The largest portion is held domestically, but foreign entities hold trillions, making countries like Japan and China significant lenders.
 

What is the poorest country in the world?

As of late 2025/early 2026, South Sudan is widely considered the poorest country in the world, consistently ranking last or near-last by GDP per capita due to civil conflict, political instability, and resource issues, though Afghanistan also appears at the very bottom in some rankings. Other nations like Burundi, Central African Republic, and Yemen also face extreme poverty.
 

Who has the most debt on Earth?

The United States has the most government debt in absolute dollar terms, exceeding $38 trillion, followed by China and Japan, with the top three countries holding about 60% of the world's total government debt. While the U.S. has the largest amount, Japan often ranks high for debt as a percentage of its GDP (Gross Domestic Product). 

Why is the US in so much debt?

The U.S. is in so much debt because it consistently spends more than it collects in revenue, creating annual deficits that add to the national debt, driven by structural issues like aging populations, rising healthcare costs, interest on existing debt, and unfunded tax cuts, alongside significant emergency spending during crises like wars and the COVID-19 pandemic. A tax system not generating sufficient revenue to cover promised spending, especially on Social Security and Medicare, exacerbates this imbalance. 

What country owns the most money to the US?

Drilling into the roughly 24% of U.S. federal debt held by foreign investors at the end of 2024 reveals that Japan remains the largest holder, with $1.06 trillion in U.S. Treasuries, followed by China at $759 billion.

Are any countries not in debt?

No major independent country is entirely debt-free, as national debt is normal for funding growth, but some nations, like Liechtenstein, Brunei, Macao, and Kuwait, maintain extremely low debt-to-GDP ratios or have significant surpluses, often due to resource wealth or strong financial sectors, with Liechtenstein and Macao frequently cited as nearly debt-free. 

How much does China owe the USA?

China holds a significant amount of U.S. debt, primarily in Treasury bonds, with recent figures (late 2024/early 2025) showing China owning around $750-$800 billion in U.S. securities, making it the second-largest foreign holder after Japan, though this is a smaller percentage of the total U.S. debt. This amount fluctuates as China has been reducing its holdings, but it represents loans from China to the U.S. government, not a debt the U.S. owes to China in a punitive way, but rather investments in U.S. assets. 

What happens if the USA can't pay its debt?

A default on all outstanding U.S. Treasuries would almost surely precipitate a global financial crisis. Further, because about 70% of the debt is held by Americans, most of the savings from foregone interest payments would be at the expense of U.S. investors.

Is Trump going to forgive tax debt?

There is no IRS forgiveness plan officially introduced by Trump in 2025. While some campaign proposals have discussed tax simplification or reduced rates, they do not include debt cancellation for individuals with unpaid taxes.

What is the #1 cause of debt in the US?

The leading cause of debt in America, by far, is mortgage debt, making up about 70% of total household debt, as housing is the largest purchase for most Americans. Following mortgages, major drivers of personal debt include auto loans, student loans, credit cards, often used for unexpected expenses like medical bills, and rising costs for necessities like childcare. 

Could China survive without the US?

Yes, China could survive without the U.S. because it has diversified its trading partners significantly, particularly within Asia, the EU, and the Global South, and possesses a massive internal market, but losing the U.S. market would still cause significant economic disruption, slow growth, and impact its technological development in key areas like semiconductors, forcing reliance on domestic innovation or alternative partners like Europe. 

What is the safest place for money if the US defaults on debt?

If the US defaults. there is no safe place to put your US Dollars. The alternatives are commodities (gold,silver,collectibles) or possibly foreign currencies (euro,pound,etc). But really, if the US defaults the best assets you'll have would be canned goods and ammunition.

Why doesn't China call in US debt?

Treasury bonds are freely traded financial instruments, China cannot —nor can any other creditor—simply demand a repayment at their will. Additionally, because the U.S. controls its own currency, it has the ability to manage its debt through fiscal and monetary policies.