Sweden Tops Education Spending Among Major Economies, Indonesia Ranks Lowest

Sweden has emerged as the country with the highest education expenditure relative to gross domestic product (GDP) among the world’s top 40 economies. Sweden’s education budget accounts for 7.3% of its GDP. Sweden is followed by Denmark at 6.4% of GDP and Belgium at 6.3% of GDP. The United Kingdom (5.9%), Brazil (5.6%), the United States (5.4%), and South Korea (5.4%) are also among the major economies with the highest spending. However, Indonesia ranks as the country with the lowest education budget relative to GDP among the world’s largest economies, at just 1.3%. This figure is even lower than neighbouring countries such as Vietnam (2.9%), Thailand (2.5%), and Singapore (2.2%). When the data scope is expanded globally, small island nations dominate the top rankings. Kiribati leads with 16.4% of GDP, followed by Tuvalu (12.9%) and Micronesia (11.6%). Namibia (9.1%) and Algeria (9.0%) also rank highly, demonstrating that large education budgets relative to GDP are not limited to wealthy economies. Education spending reflects a combination of political priorities, demographics, and fiscal capacity. According to the OECD, countries with younger populations often require greater investment to accommodate growing student numbers, while ageing societies may face lower enrolment pressures. Governments must also balance education spending with competing demands such as healthcare, pensions, and infrastructure. However, spending alone does not determine educational outcomes. The World Bank argues that how funds are allocated can be just as important as the size of the budget. Teacher quality, governance, and accountability can all influence whether additional spending improves learning results.