Governments exist by borrowing to fund the various activities that are necessary including public education, roads, hospitals and other projects. Debt is a common function of all working economies. There has been an increase in the debt to GDP rations throughout the world in past decades. This is because governments took advantage of the low interest rates offered, piling up debt that will cost them less in the long run, when the rates begin to rise, which is inevitable. Borrowing is a positive thing for working economies unless it goes unchecked and gets out of hand. It is particularly damaging for a country to borrow when the economy is in an economic downturn. The cheap debt that is amassed can quickly become unaffordable if it becomes too high and there is not enough money being generated within the country. Ideally, countries will have the ability to pay back debt without incurring further debt to meet obligations.
Here are the 20 nations in the world with the most debt to GDP ratios.