20 countries drowning in debt

SWAMPED BY MASSIVE LOANS

The US may have the largest national debt of any country at an eye-watering $19.5 trillion (£14.7trn), but nations with a higher debt-to-GDP ratio are more indebted in relative terms.

The higher the ratio, the more unsustainable the repayments and the more at risk a country is of falling into a debt spiral.

Up to their eyeballs in IOUs, we reveal the most leveraged nations on the planet according to World Economic Forum research.

USA – 104.5%

A combination of pricey bank bailouts, an overstretched welfare system, tax cuts introduced during the George W Bush administrations and expensive foreign wars have taken their toll on the US national debt, which is mainly owed to foreign creditors. Though manageable, the debt-to-GDP ratio had risen to a worrying 104.5% by 2014/15.

SINGAPORE – 103.8%

Singapore's debt-to-GDP ratio may look unhealthy. But the Asian economic powerhouse is in pretty robust financial shape. Singapore is actually a debt creditor with no external debts. All its debts are internal, which are to easier to manage, and consist of Singapore Government Securities (SGS) issued to support the country's Central Provident Fund (CPF).

Barbados – 92%

The Caribbean island state has been building up debt gradually over many years according to credit rating agency Moody's. While the government has cut public sector jobs, growth has been slow in the tourist and offshore banking industries – the island's main earners – and debt-to-GDP had risen to 92% at the last count.

Bhutan – 110.7%

The Himalayan mountain kingdom has been racking up large debts over the last few years. The government has been borrowing heavily to fight poverty in the country and finance various major hydropower projects, which it hopes will generate enough electricity – and cash – to service the growing debt.

Cyprus – 112%

The 2012–2013 Cypriot financial crisis and downgrading of the government's bond rating to junk status has cranked up the country's debt-to-GDP ratio to perilous levels, soaring well above the Eurozone average in the past few years. Luckily, experts predict a steady fall in the ratio as the Cypriot economy continues to recover.

Ireland – 122.8%

Ireland, which guaranteed its domestic banks, was badly affected by the global financial crisis of 2008, and borrowed extensively to balance the books, while refusing to raise corporation tax rates. The economy has since bounced back and while Ireland's debt-to-GDP ratio hit 122.8% in 2014/15, it is expected to drop to a healthier 99% by the end of 2016.

Portugal – 128.8%

Like Ireland, Portugal was hit particularly hard by the global financial crisis of 2008 and subsequent sovereign debt crisis. The government was forced to borrow to keep the country afloat, and as a consequence, the national debt has skyrocketed to 128.8%, which is 'challenging' for the country according to credit rating agency Moody's. 5.

Italy – 132.5%

Italy was already drowning in debt before the global financial crisis of 2008. The country's debt-to-GDP ratio exceeded the 100% mark throughout the 1990s and early 2000s. The crisis has only made things worse, but there appears to be light at the end of the tunnel. Experts predict a modest reduction in the ratio during 2017.

 CANADA – 89.1%

With its economy teetering on the edge of recession, Canada's debt-to-GDP ratio crept up to 89.1% in 2014/15 and closer to the potentially dangerous threshold of 90%, which experts believe begins to impact upon economic growth. Leading economist Steve Keen believes Canada is vulnerable to debt crisis and recession in the next few years.

Jamaica – 138.9%

Jamaica is still recovering from its late 1990s to early 2000s financial meltdown, never mind the global financial crisis of 2008, and much of its public debt emanates from this period. In fact, according to experts, the bulk of the debt can be attributed to losses incurred by the country's banking sector, the Jamaican Water Commission and Air Jamaica.

Lebanon – 139.7%

Flirting with bankruptcy, Lebanon has amassed colossal public debt over the last few years for a number of reasons. The conflict in neighboring Syria has cost the Lebanese economy the equivalent of 15% of its GDP, investment from the wealthy Gulf States has fallen, corruption is rife and monetary reform has not been forthcoming.

Greece – 173.8%

Crippled by debt, the Greek economy has been in crisis for several years now. The country shelled out over $10 billion (£7.6bn) in loan repayments to the IMF alone last year, and was so hard up, the government defaulted on a $1.7 billion (£1.3bn) repayment in June 2015. And the outlook isn't too rosy. Experts believe the country's debt-to-GDP ratio could rise to 180% by the end of the decade.

Japan – 243.2%

Two decades of economic stagnation and a series of failed stimulus plans have plunged Japan into severe chronic public debt. Like Singapore however, most of this debt is internal rather than external and more easily managed, plus Prime Minister Shinzo Abe's recent 'Abenomics' financial reforms have helped stabilize the ratio and significantly improve Japan's future economic prospects. 

UK – 90.1%

The efforts of former UK Chancellor of the Exchequer George Osborne to tighten the purse strings didn't prevent the nation's debt-to-GDP ratio ballooning from 78.4% in 2010 to 90.1% in 2014/2015. However, Osborne's austerity program may finally be paying off – the UK Office for Budget Responsibility projects a steady fall in UK debt-to-GDP over the next five years.

BELGIUM – 99.8%

Dubbed 'the new sick man of Europe' by some commentators, Belgium has borrowed extensively since the global financial crisis of 2008, and public debt in relation to GDP had soared to 99.8% by 2014/15. The country is still paying the price for a series of mega-expensive bailouts, including the nationalization of Dexia Bank Belgium.

CAPE VERDE – 95%

The African island nation has seen a rise in tourism revenues over the last few years, but its chronic lack of natural resources and large welfare bill have contributed to massive levels of public debt. The country's finance minister is in the process of reducing public spending and increasing taxes in a bid to tackle the huge debt.

 FRANCE – 93.9%

A lackluster economy and stifled growth have contributed to a bulging French debt-to-GDP figure. Experts have suggested the French economy's increasing lack of competitiveness and high unemployment could be behind the expanding ratio – government spending has risen in real terms and public debt as a percentage of GDP has steadily increased.

 SPAIN – 93.8%

Although the Spanish economy is showing strong signs of recovery, the Great Recession in Spain, which was triggered by a real estate bubble in 2008, has plunged the country into severe debt. In 2007, Spain's debt-to-GDP ratio was a robust 36% – fast-forward to 2014/15 and that figure had swelled to 93.8%.

 ICELAND – 90.2%

Iceland enjoyed a debt-to-GDP ratio of just 28.5% in 2007 but the 2008–2011 Icelandic financial crisis, which involved the default of the nation's major banks, hit the economy hard and the government had to borrow billions of dollars from the IMF and several foreign countries, including Germany and the UK. As a result, debt-to-GDP had surged to 90.2% in 2014/15.

EGYPT – 89.2%

Post Arab Spring, Egypt has experienced several years of political crisis after political crisis and its economy has suffered as a result. The current government has been borrowing heavily to pay off a huge deficit. Despite hefty tax rises and public sector reform, the debt-to-GDP ratio stands at an unhealthy 89.2%.