(NewsSpace.com) – With its economic output and military strength, the US is the most powerful country in the world. However, according to the United Nations, it’s also the most debt-ridden. In its annual report, the UN outlines the amount of debt each country has and how it could hinder its governments.
The 2024 edition of “A World of Debt” was recently released, and it notes that global public debt has grown nearly 100% since 2010, when it was $51 trillion. At the end of 2023, it stood at $97 trillion, the highest it’s ever been.
The report is quick to point out that the United States has the most public debt, $33.417 trillion, but developing countries account for a third of it as well. The United States has the world’s highest Gross Domestic Product (GDP), a measure of economic output, so it makes sense that its public debt would also be the highest.
However, while the US is able to sustain and pay its obligations, the same cannot be said of the developing regions, which include Africa, Latin America and the Caribbean, and Asia and Oceania. That disparity could cause significant problems—perhaps even collapse—in the future if it’s not addressed.
In fact, the UN report notes that Africa’s debt is growing disproportionately to its GDP, and its borrowing costs are the highest of all the regions. Where Germany has the lowest rate at 0.8%, Africa’s breaks the charts at 9.8%. For comparison, the US’ borrowing rate is 2.5%.
The excessive debt of developing countries could lead to governmental problems. Paying their obligations, especially at a higher borrowing cost, leaves less money for them to invest in their people’s futures, especially in the education and healthcare sectors and for infrastructure development.
The purpose of the UN report is to point out the disparity between developed and developing countries and to inspire a change in the “global financial architecture.”
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