Connect with us

Markets

Visualizing the State of Global Debt, by Country

Published

on

View the expanded version of this infographic to see all countries.

Global Debt

View the expanded version of this infographic to see all countries.

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

Visualizing the State of Global Debt, by Country

Since COVID-19 started its spread around the world in 2020, the global economy has been put to the test with supply chain disruptions, price volatility for commodities, challenges in the job market, and declining income from tourism. The World Bank has estimated that almost 97 million people have been pushed into extreme poverty as a result of the pandemic.

In order to help with this difficult situation, global governments have had to increase their expenditures to deal with higher healthcare costs, unemployment, food insecurity, and to help businesses to survive. Countries have taken on new debt to provide financial support for these measures, which has resulted in the highest global debt levels in half a century.

To analyze the extent of global debt, we’ve compiled debt-to-GDP data by country from the most recent World Economic Outlook report by the IMF.

Global Debt by Country: The Top 10 Most Indebted Nations

The debt-to-GDP ratio is a simple metric that compares a country’s public debt to its economic output. By comparing how much a country owes and how much it produces in a year, economists can measure a country’s theoretical ability to pay off its debt.

Let’s take a look at the top 10 countries in terms of debt-to-GDP:

RankCountryDebt-to-GDP (2021)
#1Japan 🇯🇵257%
#2Sudan 🇸🇩210%
#3Greece 🇬🇷207%
#4Eritrea 🇪🇷175%
#5Cape Verde 🇨🇻161%
#6Italy 🇮🇹155%
#7Suriname 🇸🇷141%
#8Barbados 🇧🇧138%
#9Singapore 🇸🇬138%
#10Maldives 🇲🇻137%

Source: World Economic Outlook Report (October 2021 Edition)

Japan, Sudan, and Greece top the list with debt-to-GDP ratios well above 200%, followed by Eritrea (175%), Cape Verde (160%), and Italy (154%).

Japan’s debt level won’t come as a surprise to most. In 2010, it became the first country to reach a debt-to-GDP ratio 200%, and it now sits at 257%. In order to finance new debt, the Japanese government issues bonds which get bought up primarily by the Bank of Japan.

By the end of 2020, the Bank of Japan owned 45% of government debt outstanding.

What is the main risk of a high debt-to-GDP ratio?

A rapid increase in government debt is a major cause for concern. Generally, the higher a country’s debt-to-GDP ratio is, the higher chance that country could default on its debt, therefore creating a financial panic in the markets.

The World Bank published a study showing that countries that maintained a debt-to-GDP ratio of over 77% for prolonged periods of time experienced economic slowdowns.

COVID-19 has worsened a debt crisis that has been brewing since the 2008 global recession. A report from the International Monetary Fund (IMF) shows that at least 100 countries will have to reduce expenditures on health, education, and social protection. Also, 30 countries in the developing world have high levels of debt distress, meaning they’re experiencing great difficulties in servicing their debt.

This crisis is hitting poor and middle-income countries harder than rich countries. Wealthier countries are borrowing to launch fiscal stimulus packages while low and middle income countries cannot afford such measures, potentially resulting in wider global inequality.

The IMF Warns of Interest Rates

Global debt reached $226 trillion by the end of 2020, seeing the biggest one-year increase since World War II.

Borrowing by governments accounted for slightly over half of the $28 trillion increase, bringing global public debt ratio to a record of 99% of GDP. As interest rates rise, IMF officials warn that higher interest rates will diminish the impact of fiscal spending, and cause debt sustainability concerns to intensify. “The risks will be magnified if global interest rates rise faster than expected and growth falters,” the officials wrote.

“A significant tightening of financial conditions would heighten the pressure on the most highly indebted governments, households, and firms. If the public and private sectors are forced to deleverage simultaneously, growth prospects will suffer.”

Editor’s note: All data used in our visualization was extracted from the World Economic Outlook Report (October 2021 Edition) and The World Bank. We will update this data when the new report is available in April 2022.

Click for Comments

Agriculture

The World’s Top Cocoa Producing Countries

Here are the largest cocoa producing countries globally—from Côte d’Ivoire to Brazil—as cocoa prices hit record highs.

Published

on

This tree map graphic shows the world's biggest cocoa producers.

The World’s Top Cocoa Producing Countries

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

West Africa is home to the largest cocoa producing countries worldwide, with 3.9 million tonnes of production in 2022.

In fact, there are about one million farmers in Côte d’Ivoire supplying cocoa to key customers such as Nestlé, Mars, and Hershey. But the massive influence of this industry has led to significant forest loss to plant cocoa trees.

This graphic shows the leading producers of cocoa, based on data from the UN FAO.

Global Hotspots for Cocoa Production

Below, we break down the top cocoa producing countries as of 2022:

Country2022 Production, Tonnes
🇨🇮 Côte d'Ivoire2.2M
🇬🇭 Ghana1.1M
🇮🇩 Indonesia667K
🇪🇨 Ecuador337K
🇨🇲 Cameroon300K
🇳🇬 Nigeria280K
🇧🇷 Brazil274K
🇵🇪 Peru171K
🇩🇴 Dominican Republic76K
🌍 Other386K

With 2.2 million tonnes of cocoa in 2022, Côte d’Ivoire is the world’s largest producer, accounting for a third of the global total.

For many reasons, the cocoa trade in Côte d’Ivoire and Western Africa has been controversial. Often, farmers make about 5% of the retail price of a chocolate bar, and earn $1.20 each day. Adding to this, roughly a third of cocoa farms operate on forests that are meant to be protected.

As the third largest producer, Indonesia produced 667,000 tonnes of cocoa with the U.S., Malaysia, and Singapore as major importers. Overall, small-scale farmers produce 95% of cocoa in the country, but face several challenges such as low pay and unwanted impacts from climate change. Alongside aging trees in the country, these setbacks have led productivity to decline.

In South America, major producers include Ecuador and Brazil. In the early 1900s, Ecuador was the world’s largest cocoa producing country, however shifts in the global marketplace and crop disease led its position to fall. Today, the country is most known for its high-grade single-origin chocolate, with farms seen across the Amazon rainforest.

Altogether, global cocoa production reached 6.5 million tonnes, supported by strong demand. On average, the market has grown 3% annually over the last several decades.

Continue Reading

Subscribe

Popular