Quite a lot is mentioned in the mass media, that the nations with the most poor people and with corruption in their governments are those with the most financial problems. However, Japan leads the list of the most indebted countries on the planet.
It is incredible, but true. Among the 14 most indebted countries, only four are poor: Jamaica, Zimbabwe, Eritrea and Grenada. On the contrary, we see that the richest nations in the world, such as the United States, Italy, Greece, Portugal and also Iceland, maintain an external debt that exceeds 100% of the Gross Domestic Product.
Robert Polli, deputy director of the Political Economy Research Institute in Massachusetts, says:
“Many developed countries can borrow in their own currencies and access financial markets at very low interest rates. To be indebted in this way to finance the growth or to leave a crisis is a great advantage, but it is not a free trip. Everything depends on the circumstances of each country. “
Everything has worsened in the last 20 years. For example, Greece in 2007 exceeded 115% of GDP demarcated by the International Monetary Fund. But at present, it exceeds 200%.
In the year 1997, Japan exceeded the threshold of one hundred percent of the Gross Domestic Product and in this present year, it is increasing by 240%.
We also find Italy, where seven years ago it passed 112% and today, it has reached 130%. The interest rate decides in a big way, the management of the debt. In these first 15 years of the new millennium, this rate has approached low limits never seen before.
In recent years the debt of many countries in the world has lit a warning about a possible new global economic crisis, the surprising thing is that Greece is not one of the most indebted nations, but one of the great economic references of the world.
According to the world economic analysis, it can be shown that during the period of these last seven years, the world’s debt increased by more than 57 billion dollars. In conclusion, the nation with the most external debt is Japan, with a commitment of 400% of its GDP. Next we find Ireland, Singapore, Portugal and then Belgium, with a debt that triples its GDP.
Then there are the so-called Netherlands with 325% and Greece with 317%, occupying the seventh position of the most indebted. And those considered as major powers such as France, exceeds 280% of debt, along with England that rises by 252% and the United States, with 233%.
May 1, 2019