Taiwan’s “low debt” ranking revealed! 2026 global debt rankings released, Japan ranks second

The disparity in debt levels between countries is staggering! According to the latest "World Economic Outlook" data from the International Monetary Fund (IMF), Sudan's government debt-to-gross domestic product (GDP) ratio will be as high as 334.4% in 2026, ranking first in the world. Japan ranks second with 199.4%, and Singapore ranks third with 166.4%. On the other hand, Taiwan’s government debt-to-GDP ratio is 21.1%, ranking 10th among the world’s “low-debt” economies, while Hong Kong ranks 4th at 14.1%.

The ranking is based on the ratio of total government debt to GDP and excludes economies with a population of less than 1 million. When the debt-to-GDP ratio exceeds 100%, it means that the scale of government debt exceeds the economy's annual GDP. However, the level of debt ratio cannot alone determine the health of a country's finances. Factors such as government assets, borrowing costs and economic growth must still be considered.

Looking at the countries with the highest debt, Sudan leads other countries by a wide margin with a debt-to-GDP ratio of 334.4%, followed by Japan at 199.4%. Singapore's debt ratio also reached 166.4%, higher than Bahrain's 162.8%, Lebanon's 139.4%, Italy's 137.9% and Greece's 136%. The United States ranked 8th with 126.8%, while Libya and France ranked in the top 10 with 125.2% and 118.5% respectively.

Singapore's high-debt ranking is particularly noteworthy, but its fiscal structure is different from that of some high-debt countries. The report pointed out that while Singapore bears government debt, it also holds a large amount of financial assets. The borrowings are mainly used for investment and development of the domestic bond market, rather than directly supporting daily government expenditures. Therefore, its fiscal risks cannot be judged based on the debt ratio alone.

The U.S. government debt-to-GDP ratio reaches 126.8%. Data indicate that the U.S. federal government’s net interest expenses are expected to reach US$1 trillion in 2026, and are expected to more than double the current level by 2036. Major European economies are also facing heavy debt pressure. The government debt-to-GDP ratio of Italy, Greece, France, Belgium and the United Kingdom all exceeds 100%, with Italy reaching 137.9%, one of the highest debt ratios among developed economies.

China's debt situation has also received attention. Data estimate that China's government debt-to-GDP ratio will rise to 104.4% in 2026, a significant increase from 59.9% in 2019, and exceed 100% for the first time. The long-term downturn in the real estate market and the increasing debt burden of local governments are seen as background factors for the rise in related debts.

In contrast, the ranking of low-debt economies presents a different look. Turkmenistan ranks lowest with a government debt-to-GDP ratio of 2.9%, Haiti ranks second at 10.5%, East Timor at 13.9%, Hong Kong at 14.1%, and Azerbaijan at 16.5%. Kosovo, Puerto Rico, Tajikistan, Russia and Taiwan also entered the top 10 with low debt, with Taiwan ranking 10th with 21.1%.

As for Denmark, the government debt-to-GDP ratio is 26.4%. Although it does not enter the top 10 with the lowest debt, it is still relatively low among rich economies. The report pointed out that Danish government spending accounts for about 44% of GDP, but it will still record a budget surplus equivalent to 2.9% of GDP in 2025, which will help reduce borrowing needs.