No major independent country has zero national debt, as it's normal for economies, but some small nations like Liechtenstein and financial centers like Macao SAR and Singapore have virtually no government debt, often due to oil revenues or strong financial reserves, while Saudi Arabia maintains low debt from oil income. Countries typically manage debt, but some, like Singapore, have more assets than liabilities (net debt-free).
There is no independent country that is completely debt-free. Having national debt is considered normal in modern economic systems. The country with the highest national debt is Japan. The United States is not a debt-free country.
The United States has the largest total national debt in absolute dollar terms (over $38 trillion), followed by China and Japan, but Japan has the highest debt when measured as a percentage of its Gross Domestic Product (GDP) (over 230%), indicating a much larger debt burden relative to its economic output.
It reached a peak of $1 trillion in 2021, after which it declined to approximately $800 billion in 2023. Notably, from 2016 onwards, China's overseas lending exceeded the combined official lending of the IMF, World Bank, and 22 Paris Club countries, making China the most important creditor to developing countries.
The U.S. has had debt since its inception. Our records show that debts incurred during the American Revolutionary War amounted to $75,463,476.52 by January 1, 1791. Over the following 45 years, the debt grew. Notably, the public debt actually shrank to zero by January 1835, under President Andrew Jackson.
Australian Government debt was progressively reduced after the Second World War and largely eliminated by the beginning of the 1970s.
75% of the Debt is Controlled Domestically
While foreign holders own roughly 25–32% of public debt, the remaining 68–75% is held domestically by U.S. entities and institutions.
Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial.
America owes China about $1 trillion dollars. Until we balance the US budget and pay down our debt, China's ownership of 7 percent of the national debt will continue to give it a vested interest in America's prosperity, not leverage to do us harm.
Australia's government debt is nearing $1 trillion AUD in gross terms, with forecasts placing it just over that mark in late 2025 or early 2026, representing around 32-35% of GDP, which is considered relatively low compared to other developed nations despite rising from previous years. Net debt, which accounts for government assets, is lower (around $880 billion in 2024-25) but also growing as a percentage of GDP.
Investors in Japan and China remain among the largest foreign holders of Treasury debt. Foreign ownership of U.S. debt can have implications for the nation's economy and financial markets.
India is World Bank's biggest debtor, and has been for decades.
Ranked: Countries With the Most Government Debt in 2025
The U.S. dollar would depreciate and the yuan would appreciate if China called in all its U.S. holdings, making Chinese goods more expensive.
Public sector net debt amounted to 93.5 percent of gross domestic product in the United Kingdom during the 2024/25 financial year. Following the COVID-19 pandemic, UK government debt has reached levels not seen since the early 1960s, due to a significant increase in borrowing in 2020/21.
If you're carrying a significant balance, like $20,000 in credit card debt, a rate like that could have even more of a detrimental impact on your finances. The longer the balance goes unpaid, the more the interest charges compound, turning what could have been a manageable debt into a hefty financial burden.
Once the debt limit is reached, the Treasury can't sell any more bonds and other securities to pay off the debt from previous deficits. Put simply: it can't get cash to pay off bills the government has already accumulated. If the U.S. can't pay those bills, then it defaults on the national debt.
The phrase “Trump IRS forgiveness” is often used to describe speculative or proposed tax relief measures tied to Donald Trump's campaign promises or tax policies during his presidency. However: No legislation has been passed in 2025 to forgive IRS tax debt due to Trump's re-election campaign.
Yes, Australia is widely considered a rich country, consistently ranking among the world's wealthiest by metrics like GDP per capita and median wealth per adult, often placing second or fifth globally due to strong resources (mining, agriculture) and high real estate values, though this wealth coexists with significant wealth inequality and a reliance on a narrow economic base.
United States
The United States is the world's richest country by a wide margin. It's a global hub for finance, tech, energy, and entertainment. From Silicon Valley to Wall Street, American firms shape worldwide trends.
To avoid inflation, the Chinese central bank removes this incoming foreign currency by purchasing foreign assets—including U.S. Treasury bonds—in a process called “sterilization.” This system has the disadvantage of generating unnecessarily low returns on investment: by relying on FDI, Chinese firms borrow from abroad ...
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Top 20 Countries that Owe the US Money