It is widely mentioned in the mass media that the nations with the most poor people and corruption in their governments are those with the most financial problems. However, Japan is leading the list of the most indebted countries on the planet.
An ironic case wherever you look
It’s unbelievable, but true. Among the 14 most indebted countries, only four are poor: Jamaica, Zimbawe, 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 gross domestic product.
Robert Polli, deputy director of the Political Economy Research Institute in Massachusetts, says that “Many developed countries can borrow in their own currencies and access financial markets at very low interest rates. Borrowing in this way to finance growth or get out of a crisis is a big advantage, but it’s not a free trip. It all depends on the circumstances of each country.”
Everything has gotten worse in the last 20 years. For example, Greece in 2007 exceeded 115% of GDP demarcated by the International Monetary Fund. But today, it is over 200%.
In 1997, Japan exceeded the one percent threshold for Gross Domestic Product and this year, 2015, is rising from 240%.
We also found Italy, where seven years ago it was 112% and today, it has reached 130%. The interest rate decides very much, 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 of the world has ignited an alert to 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 benchmarks in the world.
According to global economic analyses, it can be shown that over the past seven years, the world’s debt increased by more than $57 trillion. In conclusion, the nation with the most external debt is Japan, with a commitment of 400% of its GDP. Then we find Ireland, Singapore, Portugal and then Belgium, with a debt that triples their GDP.
Next are the so-called Netherlands with 325% and Greece with 317%, occupying the seventh most indebted. And the largest powers like France, it exceeds 280% of the debt, along with England that rises by 252% and the United States, with 233%.
July 20, 2019