In 2016 worldwide debt has reached a whopping $164 trillion. And the further we go, the larger it gets. And as we know national debt has never done any country any favors. If anything it is a serious threat to the overall health of the national economy. And the larger the debt is the more unstable the national currency is.
Although not extremely dangerous, these are the countries where national debt-to-GDP ratio is the largest.
1. Canada
2. Spain
3. United Kingdom
4. France
5. United States
1. Canada
Debt-to-GDP ratio: 114 percent
Even though the economy of Canada is one of the most important and is deemed one of the strongest economies in the world national debt ratio is still a very unpleasing number. Well, Canadian economy is very heavily dependent on prices for oil and there is nothing we can do about it. The debt is estimated to reach 308.69 billion CAD.
For us all that is left with CAD is to try and profit off of its tight connection with oil.
2. Spain
Debt-to-GDP ratio: 117 percent.
It is no wonder that Spain came up on the list. After all the country’s economy was damaged during a financial crisis of 2008 and there are still signs that it has not recovered and there are still doubts that it can at all recover completely.
Of course the currency of Spain is euro, so there are no fears that international traders are going to lose interest in Spanish national currency. Although there is another problem – it is Spain that drags EU economy into the ground.
3. United Kingdom
Debt-to-GDP ratio: 119 percent.
With Brexit and political instability it is no wonder that British economy is far from its perfect state. Pound has turned from one of the most stable currencies into the one that we have to specifically watch before trading. The jumps and changes in price are rapid and often unpredictable. Great Britain today is a perfect representation of how much the economy is influenced by the political scene of the country.
4. France
Debt-to-GDP ratio: 123 percent.
Even though France just like Great Britain are one of the world’s most powerful and policy-making countries there are still troubles inside the borders. And being on the most important countries of Eurozone, troubles in France are never just French – they are felt by the entire zone and by all the traders around the world for that matter as they tend to send euro plunging down.
5. United States
Debt-to-GDP ratio: 127 percent.
American national debt is something akin to a legend. It is so big that we are not even going to count it. But as we can see this little blimp in the way is just that – a blimp – for American economy. Not only Americans managed to build the biggest economy, US is also the most powerful and influential country of the world. But that is the topic for another discussion.
And so this is the first part of the research.
