File image of U.S. President Joe Biden. Photo: Getty Images
In Summary:
- The United States has the highest external debt in the world, followed by Japan and other major economies.
- Several African nations, including Egypt and Kenya, are among the biggest debtors to the IMF and China.
- African countries face significant debt challenges, with Egypt leading in IMF debt and Angola in Chinese debt.
United States and Japan Lead Global Debt Rankings:
The United States and Japan rank as the top countries with the highest debt-to-gross domestic product (GDP) ratios.
According to the US Department of the Treasury, as of March 2024, the United States held an external debt of $26.47 trillion, surpassing $25.98 trillion from the previous quarter.
The US also recorded a budget deficit of $237.6 billion during the same period, with Japan, China, the United Kingdom, Luxembourg, and Canada being its largest creditors.
United Kingdom:
In the United Kingdom, data from the Office for National Statistics revealed that the country’s debt, excluding the Bank of England, reached 91.6% of its GDP as of June 2024, totaling £2.52 trillion.
France:
France reported an external debt equal to 244.9% of its nominal GDP in 2023, increasing from 244% in the previous year.
By May 2024, France’s account deficit stood at $3.4 billion (KSh 438.6 billion), while its external debt amounted to $7.81 trillion.
Germany:
Germany’s Deutsche Bundesbank disclosed that the nation’s external debt reached €6.2 trillion (KSh 873.9 trillion) in the first quarter of 2024.
“Germany’s gross external debt amounted to €6.2 trillion at the end of the first quarter of 2024; relative to GDP, it increased in the period under review,” the bank stated.
Meanwhile, Japan’s external debt decreased from $4.52 trillion to $4.43 trillion in March 2024, with the Ministry of Finance noting that the country spent 27 trillion yen on national debt service.
The Netherlands also saw a slight decrease in external debt, from $4.28 trillion to $4.26 trillion as of March 2024, representing 62.5% of its GDP.
Africa’s IMF and Chinese Debt:
In Africa, Egypt holds the highest IMF debt at $11.27 billion (KSh 1.45 trillion), with Kenya also being one of the largest debtors.
China, which accounts for 12% of the continent’s external debt, has contributed to the debt distress of seven African nations, with Angola leading as the country with the highest Chinese debt.