Category: debt to gdp

Visualizing the State of Global Debt, by Country

This post is by Raul Amoros from Visual Capitalist

View the expanded version of this infographic to see all countries.

Global Debt to GDP 2021

View the expanded version of this infographic to see all countries.

Visualizing the State of Global Debt, by Country

Since COVID-19 started its spread around the world in 2020, the global economy has been put to the test with supply chain disruptions, price volatility for commodities, challenges in the job market, and declining income from tourism. The World Bank has estimated that almost 97 million people have been pushed into extreme poverty as a result of the pandemic.

In order to help with this difficult situation, global governments have had to increase their expenditures to deal with higher healthcare costs, unemployment, food insecurity, and to help businesses to survive. Countries have taken on new debt to provide financial support for these measures, which has resulted in the highest global debt levels in half a century.

To analyze the extent of global debt, we’ve compiled debt to GDP data by country from the most recent World Economic Outlook report by the IMF.

Debt-to-GDP ratio by Country: The Top 10 Most Indebted Nations

The debt-to-GDP ratio is a simple metric that compares a country’s public debt to its economic output. By comparing how much a country owes and how much it produces, economists can measure a country’s ability to pay off its debt.

Let’s take a look at the top 10 countries in terms of debt to GDP:

#1Japan ??257%
#2Sudan ??210%
#3Greece ??207%
#4 (Read more...)

Visualizing U.S. Household Debt, by Generation

This post is by Aran Ali from Visual Capitalist

The Generational Power Index
The Generational Power Index
Introducing our new index, which ranks U.S. generations on their economic, political, and cultural influence.

>> Download the Report (.pdf)

U.S. household debt by generation

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The Briefing

  • Generation X is the most indebted generation on average, with $140,643 of household debt
  • Younger generations are witnessing their debts growing at a greater pace relative to older Americans

Visualizing U.S. Household Debt, by Generation

The year 2020 could be categorized as one where debt grew across the board. In the U.S., every generation except the Silent Generation saw their debts rise in the last year.

But how much debt does each generational household owe?

Generation20192020Growth (%)
Generation Z (18-24)$9,593$16,04367.2%
Millennials (25-40)$78,396$87,44811.5%
Generation X (41-56)$135,841$140,6433.5%
Baby Boomers (57-75)$96,984$97,2900.3%
Silent Generation (76+)$43,255$41,281-4.6%

Gen X are the most indebted Americans followed by the Baby Boomers. The breakdown of debt by age group suggests the typical American’s debts grow with adulthood to a certain age, at which point it begins to taper off.

(Read more...)

Visualizing the Snowball of Government Debt

This post is by Marcus Lu from Visual Capitalist

Visualizing the Snowball of Government Debt in 2021

Visualizing the Snowball of Government Debt in 2021

As we approach the second half of 2021, many countries around the world are beginning to relax their COVID-19 restrictions.

And while this signals a return to normalcy for much of the global economy, there’s one subject that’s likely to remain controversial: government debt.

To see how each country is faring in the aftermath of an unprecedented global borrowing spree, this graphic from visualizes debt-to-GDP ratios using April 2021 data from the International Monetary Fund (IMF).

Ranking the Top 10 in Government Debt

Government debt is often analyzed through the debt-to-GDP metric because it contextualizes an otherwise massive number.

Take for example the U.S. national debt, which currently sits at over $27 trillion. In isolation this figure sounds daunting, but when expressed as a % of U.S. GDP, it works out to a more relatable 133%. This format also allows us to make a better comparison between countries, especially when their economies differ in size.

With that being said, here are the top 10 countries in terms of debt-to-GDP. For further context, we’ve included their 2019 and 2020 values as well.

Rank (2021)CountryDebt-to-GDP (2019)Debt-to-GDP (2020)Debt-to-GDP (April 2021)
#1?? Japan235%256%257%
#2?? Sudan200%262%212%
#3?? Greece185%213%210%
#4?? Eritrea189%185%176%
#5?? Suriname93%166%157%
#6?? Italy135%156%157%
#7?? Barbados127%149%143%
#8?? Maldives78%143%140%
#9?? Cape Verde125%139%138%
(Read more...)

The State of Household Debt in America

This post is by Aran Ali from Visual Capitalist

The growing household debt in America

The Briefing

  • U.S. household debt stands at $14.56 trillion, and has doubled since 2003
  • Student loan debt has expanded a colossal 550% in the same time frame

The State of Household Debt in America

American households are becoming increasingly indebted.

In 2003, total household debt was $7.23 trillion, but that figure has recently doubled to $14.56 trillion in 2020. With just under 130 million households in the country, this equates to an average of $118,000 of debt per household.

Here’s how the various forms of U.S. household debt compare.

Type of Debt2003 (in trillions)2020 (in trillions)% Growth
Home Equity Revolving$0.24$0.35+45%
Auto Loan$0.64$1.37+137%
Credit Card$0.69$0.82+18%
Student Loan$0.24$1.56+550%

Mortgages: Steep Price to Pay for Home Ownership

Making up roughly 70% of all household debt, and growing $5.1 trillion since 2003, mortgage debt now stands at $10.04 trillion.

A fundamental driver of mortgage activity is interest rates. Given the two variables tend to have an inverse relationship with one another, interest rates have a big impact on the affordability of housing. As long as U.S. interest rates remain near 200-year lows, its likely mortgages will maintain at elevated levels.

Students Continue Struggling with Student Debt

The second-largest form of debt is student loans. Although not quite the size of mortgages in raw dollars, student debt is the fastest growing as a percentage, having (Read more...)