When people hear that a country has trillions of dollars in debt, it can be difficult to understand what that actually means. The numbers are enormous, but government debt is not automatically a sign that a country is about to go bankrupt. Large economies can carry very large amounts of debt because they also have huge tax bases, financial markets, and economies that can support borrowing.
Based on the International Monetary Fund’s April 2026 World Economic Outlook, the United States is expected to have the largest amount of government debt in the world in 2026, at about $40.7 trillion. China follows with around $22.3 trillion, while Japan has approximately $9 trillion. The IMF’s WEO database is the main source used here because it provides internationally comparable fiscal data and projections.
Here are the 10 countries with the largest government debt, followed by their approximate debt-to-GDP ratios.
| Rank | Country | Government debt | % of GDP |
| 1 | United States | $40.7 trillion | 125.8% |
| 2 | China | $22.3 trillion | 106.9% |
| 3 | Japan | $9.0 trillion | 204.4% |
| 4 | United Kingdom | $4.1 trillion | about 104% |
| 5 | France | $3.9 trillion | about 118% |
| 6 | Italy | $3.5 trillion | 137.1% |
| 7 | India | $3.2 trillion | about 82% |
| 8 | Germany | $3.2 trillion | about 67% |
| 9 | Canada | $2.7 trillion | about 113% |
| 10 | Brazil | $2.1 trillion | about 104% |
The dollar amounts are rounded estimates for 2026. Debt to GDP is included because the size of a country’s economy matters when judging how large its debt burden really is. A country can owe trillions of dollars but still have a manageable debt burden if its economy and government revenues are very large.
1. United States
The United States is in a different league when it comes to the total amount of government debt. Its projected 2026 general government gross debt is about $40.7 trillion, equal to roughly 125.8% of GDP. The IMF’s latest country assessment shows that the US general government debt ratio was already 123.9% of GDP in 2025 and is projected to rise to 125.8% in 2026.
The debt has accumulated over many decades as the federal government has repeatedly spent more than it collects in revenue. Major increases came after the 2008 financial crisis and during the COVID-19 pandemic, when the government introduced large support programs for households, businesses and state governments.
The United States also has huge spending commitments, particularly for Social Security, Medicare, defense and interest payments. The IMF projects the US general government deficit to remain above 7% of GDP in 2026, which means debt is likely to continue increasing.
Interestingly, the United States has a major advantage that many countries do not. The U.S. dollar is the world’s dominant reserve currency, and U.S. Treasury securities are among the most widely used by governments, banks and investors around the world.
2. China
China has around $22.3 trillion in government debt, putting it second in the world. Its government debt is roughly 106.9% of GDP based on the 2026 IMF figures.
China’s debt story is closely connected to the country’s rapid development. Over the past few decades, enormous amounts of money have been invested in highways, railways, airports, housing, factories and entire new cities.
A particularly important part of China’s debt problem is local government borrowing. Local authorities have often relied on financing vehicles to raise money for infrastructure and development projects. At the same time, China’s property market has weakened, putting pressure on local government finances because land sales have historically been an important source of revenue.
This does not mean that all Chinese government debt represents the same type of financial risk. The structure of China’s public sector and the close relationship between government institutions and state-owned financial organizations make its debt situation different from that of countries such as the United States.
3. Japan
Japan has about $9 trillion in government debt, but its debt burden becomes much more striking when compared with the size of its economy. Government debt is estimated at roughly 204.4% of GDP, the highest level among the countries on this list.
Japan’s debt accumulated after decades of weak economic growth, government stimulus programs and persistent budget deficits. The country also has one of the world’s oldest populations. An aging population increases spending on pensions, healthcare and other social programs while reducing the size of the working-age population.
Japan has nevertheless managed its unusually high debt for a long time without experiencing the kind of debt crisis seen in some emerging economies. One reason is that a large share of Japanese government debt has traditionally been held by domestic investors and institutions.
4. United Kingdom
The United Kingdom has around $4.1 trillion in government debt, equivalent to roughly 104% of GDP.
Britain’s debt increased substantially during the 2008 global financial crisis. The government borrowed heavily to support the financial system and economy during that period. Borrowing increased again during the COVID-19 pandemic as the government funded programs designed to protect workers and businesses.
The country now faces another challenge from rising costs for pensions, healthcare and other public services. Higher interest rates also make existing government borrowing more expensive to refinance.
The UK’s debt therefore reflects both recent shocks and longer-term pressures on public spending. Its well-developed financial markets and ability to borrow in its own currency provide important advantages, but high debt still limits the government’s room to respond to future crises.
5. France
France has approximately $3.9 trillion in government debt, or around 118% of GDP.
France has maintained a relatively large public sector for decades. Government spending covers extensive pension, healthcare, education and social protection systems. This provides significant public benefits, but it also means government spending remains high.
The pandemic added another large increase in borrowing as the government supported businesses, workers and households. France has also struggled to reduce its budget deficit quickly enough to put public debt on a clear downward path.
An IMF assessment has warned that substantial fiscal adjustment would be needed to preserve financial room for future spending pressures. France’s challenge is therefore not simply the amount of debt already accumulated. It is also the difficulty of bringing annual deficits down while maintaining existing public services.
6. Italy
Italy has roughly $3.5 trillion in government debt, with public debt at about 137.1% of GDP in 2026 under the IMF’s current baseline.
Italy’s high debt is not new. Much of it accumulated decades ago, particularly when government spending and borrowing were high relative to economic growth.
Weak economic growth has made the problem harder to solve. If an economy grows slowly, GDP does not rise quickly enough to reduce the debt ratio. At the same time, the government must continue paying interest on its existing debt.
Italy has made progress in reducing some fiscal pressures, but its large existing debt stock means even relatively small changes in interest rates or economic growth can have a significant effect on public finances.
7. India
India has around $3.2 trillion in government debt, with debt at approximately 82% of GDP.
India’s borrowing needs are strongly connected to its development. The country has a huge population and continues to require major investment in roads, railways, electricity, housing, healthcare and other infrastructure. The COVID-19 pandemic also increased government borrowing, while subsequent spending has remained focused on infrastructure and economic development.
India’s rapidly growing economy is an important part of the story. If GDP grows faster than debt, the debt ratio can gradually become easier to manage even when the government continues borrowing in absolute terms.
8. Germany
Germany has approximately $3.2 trillion in government debt. Despite being one of the world’s largest borrowers in dollar terms, its debt is only around 67% of GDP, much lower than the ratios of Japan, Italy, France and the United States.
Germany traditionally followed strict fiscal rules designed to limit government borrowing. However, the pandemic, the European energy crisis and growing defense requirements have put greater pressure on public finances.
Germany has also recognized the need for more investment in infrastructure and defense. This creates a difficult balance between maintaining its traditionally cautious approach to borrowing and spending more to deal with new economic and security challenges.
9. Canada
Canada has roughly $2.7 trillion in general government debt, with gross debt at around 113% of GDP.
Canada is a useful example of why gross debt should not be viewed in isolation. A government can have significant liabilities while also holding substantial financial assets.
Canada’s net debt position is considerably stronger than its gross debt figure suggests. This is one reason international comparisons based only on gross debt can sometimes give a misleading impression of a country’s financial health.
The country’s large natural resource base, developed financial system and relatively strong institutions also give it more fiscal flexibility than some countries with similar gross debt ratios.
10. Brazil
Brazil completes the top 10 with approximately $2.1 trillion in government debt.
Brazil’s public debt has been influenced by years of fiscal deficits, economic downturns and high interest costs. Interest rates are particularly important because Brazil has historically had relatively high borrowing costs. When interest rates rise, refinancing existing debt becomes more expensive.
The IMF’s July 2026 assessment put Brazil’s general government gross debt at 100% of GDP in 2026, with the ratio projected to rise further in subsequent years under its baseline.
Brazil therefore shows another important point about government debt. Two countries can have similar debt amounts but face very different situations depending on the interest rate they pay, the currency in which they borrow and the strength of their economic growth.
Why Amount Does Not Tell the Whole Story
A country’s debt should not be judged only by how many dollars it owes.
Imagine two countries. Country A owes $5 trillion but produces $20 trillion worth of goods and services each year. Country B also owes $5 trillion but has an economy worth only $7 trillion. Both have the same amount of debt, but Country B has a much heavier burden relative to its economic size.
This is why economists often use debt-to-GDP alongside the total debt figure. Debt-to-GDP compares government debt with the country’s annual economic output.
There is another distinction worth understanding. Gross debt measures government liabilities. Net debt subtracts certain financial assets held by the government. The two measures can produce very different impressions, especially for countries that own substantial financial assets.
The IMF’s latest Fiscal Monitor shows that this is becoming a global issue rather than a problem limited to a few countries. Global public debt reached nearly 94% of GDP in 2025 and is projected to reach 100% by 2029. Rising interest costs, pressure to spend on social programs and defense, and the need for public investment are all contributing to the problem.
That is why the United States can carry more than $40 trillion in debt while Japan can have a debt ratio above 200% of GDP. The numbers are large in both cases, but the economic circumstances behind them are very different.
