List of 20 Countries with the Highest Debt in the World, Including 3 Neighbours of Indonesia
Pressure from debt in various countries around the world continues to rise and is starting to attract attention. In fact, there are several countries with debt ratios exceeding 300% of Gross Domestic Product (GDP), equivalent to more than three times their annual economic value.
Based on the Global Debt Monitor report for the fourth quarter of 2025 released by the Institute of International Finance (IIF), the calculations include total debt from households, corporations, and governments.
In the report, Hong Kong holds the position with the largest debt ratio in the world, reaching 380% of GDP. Meanwhile, Japan is next with total debt at 372% of GDP.
Hong Kong Tops the List
Hong Kong occupies the top position as the region with the highest total debt in the world, reaching 380% of GDP. This special administrative region of China is known as an advanced economic hub with high urbanisation and a population of around 7.5 million people.
Interestingly, Hong Kong’s government debt is relatively modest at 67% of GDP. Household debt is also at 86% of GDP, a level still relatively common in advanced economies.
However, what causes the total debt burden to surge so high is corporate debt, which reaches 227% of GDP.
The high level of corporate debt in Hong Kong is largely linked to the character of its economy, which heavily relies on the property sector, as reported by Visual Capitalist.
In the property business, high-leverage transactions are commonplace. It is no surprise that the property sector and its derivatives contribute significantly to Hong Kong’s economy.
Japan Supported by Surge in Government Debt
Unlike Hong Kong, which is supported by corporate debt, Japan’s debt burden comes more from the government. Japan’s total debt reaches 372% of GDP, with government debt touching 199% of GDP.
Japan’s high government debt did not occur overnight. The root of the problem dates back to the long period of stagnation after the asset price bubble burst in the early 1990s. As economic growth slowed for years, the Japanese government and central bank pursued various stimulus policies, including massive monetary easing.
Through these policies, the Bank of Japan bought large amounts of government bonds to support economic activity. This step helped maintain stability but also drove up the country’s debt. Currently, most of Japan’s debt securities are held by domestic investors, including banks and insurance companies.
Advanced Economies Still Dominate High Debt Burdens
Japan is not the only advanced economy with very high debt ratios. In recent years, various crises have forced many governments to increase borrowing, from stimulus needs during the Covid-19 pandemic to industrial and defence spending in Europe.
On the other hand, households and businesses also face higher borrowing costs amid global economic uncertainty. As a result, debt burdens in many advanced economies remain high, both on the public and private sides.
Looking at the data on total debt to GDP, the countries with the highest ratios include Hong Kong at 380%, Japan at 372%, Singapore at 347%, France at 326%, Canada at 315%, and China at 298%.
Indonesia’s Position Relatively Low
Amid the high debt burdens in many countries, Indonesia’s position is still relatively low. Indonesia’s total debt is recorded at 79% of GDP, consisting of household debt at 15%, non-financial corporate debt at 24%, and government debt at 40%.
Interestingly, Indonesia is also noted as the country with the lowest total debt burden among Southeast Asian countries included in the list.
Indonesia’s total debt ratio is still lower than the Philippines at 96% of GDP, Laos at 114%, Vietnam at 161%, Thailand at 223%, Malaysia at 224%, and Singapore at 347%.
These figures are also far below those of advanced economies and several other Asian countries such as China, Japan, and South Korea. This indicates that, in general, Indonesia’s debt pressure remains relatively more controlled.