Global debt is borrowing by governments, businesses and people, and it's at dangerously high levels. In 2021, global debt reached a record $303 trillion, according to the Institute of International Finance, a global financial industry association.
United States. The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%. The United States' government's spending exceeds its income most years, and the US has not had a budget surplus since 2001.
The US government owes trillions of dollars in debt to foreign entities, including governments, central banks, companies, and individual investors. This debt includes US Treasury bonds and other securities, which are popular as they are considered safe investments.
General government borrowing was $87.3b. Total public sector borrowing was $96.6b. All Australia general government net debt (L2) reached 33.8% as a percentage of GDP.
At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China.
In some cases Victoria's finances are compared with New South Wales, Queensland and Tasmania combined. Mr Guy and Mr Davis have also said Victoria's net debt is "the biggest debt of any state in Australia".
Japan - Debt: 221.32% of GDP
Japan's debt-to-GDP ratio is the highest in the world due to a prolonged period of economic stagnation and demographic challenges.
In Australia, and in countries around the world, government economic support packages in response to the COVID-19 pandemic have led to large increases in government debt. This continues the trend of increasing debt since the Global Financial Crisis (GFC).
The majority (two-thirds) of our government debt is held by non-resident investors. According to the Australian Bureau of Statistics (ABS), the United States and the United Kingdom are the biggest investors followed by Belgium, Japan and Hong Kong (SAR of China).
Generally speaking, they will hold U.S. Treasury securities as a low-risk asset. The biggest effect of a broad scale dump of US Treasuries by China would be that China would actually export fewer goods to the United States. Overall, foreign countries each make up a relatively small proportion of U.S. debt-holders.
China's debt is nearly 44% of its GDP and its local governments owe nearly $5.14 trillion. With the economic slowdown and collapse of land sales revenue, provinces and local governments in China are facing an embarrassing situation.
Australian Government debt was progressively reduced after the Second World War and largely eliminated by the beginning of the 1970s.
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The total debt of China's LGFVs has swelled to a record 66 trillion yuan ($9.5 trillion), equivalent to half of the country's economy, from 57 trillion yuan last year, according to an International Monetary Fund (IMF) report last month.
Net debt is currently at 22.5 per cent of GDP, or just over a fifth of Australia's total national income. Gross debt is obviously higher, at closer to 40 per cent. Comparing debt to GDP allows Australia's debt to be put in a global context, too.
A debt ceiling on how much the Australian government could borrow existed between 2007 and 2013. The statutory limit was created in 2007 by the Rudd government and set at $75 billion. It was increased in 2009 to $200 billion, $250 billion in 2011 and $300 billion in May 2012.
According to available data from the OECD, the average Australian household debt-to-income ratio comes in at $187 for every $100 of after-tax income.
Mr Gross said while there was "definitely a higher probability" of Australia going into a recession now than there was three months ago, he agreed that it was unlikely. "A period of weak growth … where the economy only slowly grows, seems the most likely outcome," he said.
The world's 12th largest economy
Strong growth in 2021 solidified Australia's position as the world's 12th largest economy in 2021. Nominal GDP was around A$2.2 trillion (US$1.6 trillion) in 2021. Australia is home to just 0.3% of the world's population, but accounts for 1.7% of the global economy.
5206.0. Australian Government debt was progressively reduced after the Second World War and largely eliminated by the beginning of the 1970s.
Today, a government that defaults may be widely excluded from further credit; some of its overseas assets may be seized; and it may face political pressure from its own domestic bondholders to pay back its debt. Therefore, governments rarely default on the entire value of their debt.
China External Debt reached 2,481.5 USD bn in Sep 2022, compared with 2,636.0 USD bn in the previous quarter. China External Debt: USD mn data is updated quarterly, available from Jun 2003 to Sep 2022. The data reached an all-time high of 2,746.6 USD bn in Dec 2021 and a record low of 182.6 USD bn in Jun 2003.
Australia recorded a $2.3 billion current account deficit in the September quarter 2022, following 13 consecutive quarters of a current account surplus.