According to recent figures, five countries excel in the financial problems they encounter. These countries are attracting the attention of analysts for their debts which are reaching record levels. The case of the United States is well known. France is also part of this restricted circle of developed states, but up to their necks in debt.
Two European countries suffering financially
Global finances are subject to turbulence, with many countries facing unprecedented levels of debt. A situation that gives rise to concern. Particularly with regard to their long-term economic viability.
Five countries around the world help us understand the scale of the global financial crisis. France is one of them. France is in fact very indebted with an external debt which amounts to nearly 3,300 billion dollars, or 112.5% of its gross domestic product.
This debt is mainly attributable to its public debt which exceeds 3,000 billion dollars. France, despite its solid economic position, must effectively manage this debt to avoid a deterioration of its financial situation. Its credibility on international financial markets depends on it.
These analyst observations apply to the Netherlands. The European state accumulates a debt of 3,790 billion dollars, representing approximately 381% of its gross domestic product. This debt equates to approximately $215,569 per capita, underscoring the scale of the financial burden borne by every Dutch citizen.
The Japanese, British and American cases
Japan ranks 3e place of countries with the most delicate finances. The Japanese state has a debt of 4,340 billion dollars, or 98.4% of its gross domestic product. Certainly, Japan manages to maintain a dominant economic position despite this high debt. However, it must find ways to stimulate economic growth while gradually reducing its debt to ensure its long-term financial stability.
The UK will also need to take decisive action on finances. This is to control its debt and restore investor confidence in order to avoid a major financial crisis. Indeed, it is the second most indebted country in the world. It is the first on the old continent with a public and private debt of 8,700 billion dollars. Its public debt crossed the threshold of 100% of its gross domestic product during 2023, which raises concerns about its long-term sustainability.
Ditto for the United States, officially the most indebted country on the globe with a record foreign debt of 32.9 trillion dollars. A debt ” unsustainable “ according to the American Federal Reserve (Fed). The United States must take bold financial action if it is to avoid a financial crisis with global consequences.
Note that the financial situation of these five most indebted countries in the world could increase interest in cryptos. This, by offering investors a decentralized option and potentially less subject to government financial policies. However, it is a double-edged sword. Because the volatility of the crypto market could also be exacerbated by the economic uncertainties resulting from these high levels of debt.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
