Global Debt Crisis: Hong Kong Tops Ranking with Jaw-Dropping Debt Burden
The world's most indebted countries have been revealed in a new ranking by Visual Capitalist. Hong Kong takes the top spot, with its total debt burden reaching an astonishing 380% of GDP.
The small special administrative region of China has high corporate debt of 227%, making up nearly the entirety of its total debt burden. This is largely due to the SAR's real estate business, where high-debt transactions are standard.
In contrast, Japan's government debt nears 200% of GDP, with the Bank of Japan owning roughly half of the national debt. The country's corporate debt is relatively in line with other OECD and developed peers.
The Institute of International Finance's Global Debt Monitor reveals that many governments continue to run large fiscal deficits, while households and businesses face rising borrowing costs amid economic uncertainty.