These 5 countries are experiencing the biggest financial problems in the world

Recent figures show that five countries excel due to the financial problems they face. These countries catch the attention of analysts for their debts reaching record levels. The case of the United States is well-known. France is also among this select group of developed, yet heavily indebted states.

Two European countries struggling financially

Global finances are subject to turbulence, with many countries facing unprecedented levels of debt. A situation that raises concerns, especially regarding their long-term economic viability.

Five countries around the globe help understand the extent of the global financial crisis. France is one of them. The Hexagon is indeed deeply in debt with an external debt amounting to nearly 3,300 billion dollars, which represents 112.5% of its gross domestic product (GDP).

This debt is mainly due to its public debt which exceeds 3,000 billion dollars. France, despite its solid economic position, must efficiently manage this debt to avoid a deterioration of its financial circumstances. Its credibility in the international financial markets depends on it.

These analyst observations also apply to the Netherlands. The European state accumulates a debt of 3,790 billion dollars, representing about 381% of its GDP. This debt equates to about 215,569 dollars per inhabitant, which underscores the magnitude of the financial burden borne by each Dutch citizen.

Voici les 5 pays les plus endettés au monde https://t.co/aHJdd06bCU

— Dom Mat (@DomMathieu1) February 8, 2024

The Japanese, British, and American cases

Japan ranks 3rd place in countries with the most delicate finances. The Japanese state has a debt of 4,340 billion dollars, which is 98.4% of its GDP. Indeed, Japan manages to maintain a leading economic position despite this high debt. However, it must find ways to stimulate economic growth while gradually reducing its debt to ensure long-term financial stability.

The United Kingdom will also have to take decisive action in finance to manage its debt and restore investor confidence to avoid a major financial crisis. Indeed, it is the second-most indebted country in the world and the first on the old continent with a public and private debt of 8,700 billion dollars. Its public debt crossed the 100% of GDP mark during the year 2023, raising concerns about its long-term sustainability.

The same goes for the United States, officially the most indebted country in the world with a record external debt of 32,900 billion dollars. A debt described by the Federal Reserve (Fed) as “unsustainable.” The United States must take bold steps in finance if they want to avoid a financial crisis with global consequences.

It should be noted that the financial situation of these five most indebted countries in the world could increase interest in cryptocurrencies. This, by offering investors a decentralized option potentially less subjected to governmental financial policies. However, it’s a double-edged sword, as crypto market volatility could also be exacerbated by economic uncertainties resulting from these high levels of indebtedness.