Most Indebted Countries in the World: 2026 Report

Global debt hit a record $315 trillion in 2024 according to the Institute of International Finance, with sovereign borrowing leading the increase. This report ranks the most indebted countries across three lenses — government, non-financial corporates, and households — using the latest data from the IMF, BIS and OECD.

Key takeaways

Sovereign debt is now structurally higher than at any point in peacetime — global government debt passed $97 trillion in 2024 (IMF Fiscal Monitor).
Corporate debt is most concentrated in Hong Kong, China and France, driven by real estate, state-linked entities and intra-group financing.
Household debt risk sits in countries with variable-rate mortgages and high LTVs — Australia, Canada, Korea and the Nordics.
Cross-border recovery exposure rises with corporate leverage. Markets with high non-financial corporate debt (China, HK, France, Korea) generate disproportionate B2B insolvency volume.

Top 10 — Government debt to GDP

Source: IMF World Economic Outlook, gross general government debt, latest available.

#	Country	Debt / GDP	Context
1	Japan	255%	Largely domestically held; persistent fiscal deficits and ageing demographics
2	Sudan	186%	Conflict-driven fiscal collapse and arrears on external debt
3	Greece	168%	Legacy of the 2010 sovereign crisis; declining but still elevated
4	Singapore	165%	High gross debt offset by sovereign assets (Temasek, GIC)
5	Italy	138%	Structural deficits and slow growth in the eurozone's third-largest economy
6	United States	123%	Reserve-currency status keeps borrowing costs manageable despite size
7	France	112%	Post-pandemic spending and rising interest costs
8	Spain	108%	Down from 2020 peak but above pre-crisis level
9	Portugal	97%	Sharp deleveraging since 2014; investment-grade since 2017
10	United Kingdom	101%	Highest UK ratio since the early 1960s

Top 10 — Non-financial corporate debt to GDP

Source: Bank for International Settlements (BIS), credit to non-financial corporations.

#	Country	Debt / GDP	Context
1	Hong Kong	263%	Heavy property-developer leverage and cross-border financing hub
2	China	166%	Concentrated in real estate, LGFVs and SOEs
3	France	159%	Highest non-financial corporate debt in the eurozone
4	Sweden	147%	Property and holding-company structures
5	South Korea	127%	Chaebol leverage and SME exposure to rising rates
6	Belgium	124%	Distorted by intra-group lending of multinational HQs
7	Netherlands	121%	Holding-company and SPV concentration
8	Japan	118%	Stable, low-cost funding through main-bank relationships
9	Switzerland	117%	Strong corporate balance sheets despite high ratio
10	Canada	115%	Rising exposure to commercial real estate

Top 10 — Household debt to GDP

Source: BIS, credit to households and non-profit institutions serving households.

#	Country	Debt / GDP	Context
1	Switzerland	126%	Mortgage-heavy; long-term fixed-rate culture
2	Australia	111%	Largest property exposure in the OECD
3	South Korea	104%	Rapid growth in jeonse deposits and consumer credit
4	Canada	102%	Variable-rate mortgages amplify rate-cycle risk
5	Netherlands	97%	Interest-only mortgages and high LTVs
6	Norway	95%	Adjustable-rate mortgages dominate the market
7	Sweden	88%	Long mortgage amortisation periods
8	Denmark	85%	Historically the highest; sharp deleveraging since 2010
9	United Kingdom	82%	Mortgage-dominated; consumer credit growing again
10	United States	75%	Down from 99% in 2008 thanks to post-GFC deleveraging

What this means for cross-border collections

High corporate-debt ratios concentrate B2B default risk in a handful of jurisdictions — notably China, Hong Kong, France and South Korea. Creditors invoicing into these markets should expect longer DSO, more contested claims and stricter local enforcement requirements. Markets with elevated household leverage (Australia, Canada, Korea, the Nordics) push B2C recovery volume up when central-bank rates stay restrictive.

DECOL recovers commercial and consumer debt across 100+ jurisdictions, with local counsel in every market on this list. Our International Recovery Guide explains the cross-border process step by step.

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Figures are the latest available from the IMF, BIS and OECD as of Q1 2026 and are rounded for clarity. Ratios use gross debt and may differ from net-debt presentations. This report is general information, not investment or legal advice.