Debt is the entire stock of direct government fixed-term contractual obligations to others outstanding on a particular date. It includes domestic and foreign liabilities such as currency and money deposits, securities other than shares, and loans. It is the gross amount of government liabilities reduced by the amount of equity and financial derivatives held by the government. Because debt is a stock rather than a flow, it is measured as of a given date, usually the last day of the fiscal year.
Key Observations:
- High Debt Levels: Japan, Greece, and Italy consistently show high levels of central government debt relative to their GDP, often exceeding 100%. Japan, in particular, has debt levels over 200% of GDP.
- Economic Crises: Significant increases in debt during economic crises. Greece’s debt surged during the Eurozone crisis (2009-2015), reflecting financial struggles and bailout conditions.
- Developed Countries: High debt in developed nations like the United States and the United Kingdom, due to economic policies, social programs, and stimulus measures.
- Policy Impact: Countries like Belgium and France exhibit fluctuating debt levels due to economic policies, government changes, and global conditions. Japan’s prolonged economic stagnation and deflation led to steady debt increases.
Source: THE WORLD BANK, OECD
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