Global Debt Crisis Looms as U.S., China, Japan Lead in Borrowing

The world’s largest economies are carrying record levels of debt, raising growing concerns about global financial stability and the long-term effects on growth and living standards.

According to recent economic data, the United States currently owes about $38 trillion, the highest national debt in the world. China follows closely behind, while Japan’s public debt stands out as the largest relative to the size of its economy—roughly 235% of its gross domestic product (GDP).

Experts say that big countries accumulate large debts to finance essential programs such as pensions, healthcare, infrastructure, and defense.

However, the real measure of sustainability lies not only in the total amount owed but also in how that debt compares to the country’s economic output.

Analysts warn that the growing imbalance between government spending and economic growth could influence interest rates, taxation policies, and investment trends worldwide.

Economists note that while debt can stimulate growth in the short term, excessive borrowing poses long-term risks if not managed carefully potentially leading to higher costs for governments, businesses, and citizens across the globe.