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How global debt hits your pocket.

Dubai: According to a report from the International Monetary Fund, Greece will need far bigger debt relief than Eurozone partners have been prepared to envisage so far due to the devastation of its economy and banks in the last two weeks.

If the current third bailout for Greece is indeed approved, the national debt as a percentage of its Gross Domestic Product (GDP) will be at 200 per cent, second only to Japan, which has a debt to GDP ratio of 242.59 per cent.

By comparing what a country owes to what it produces, the debt-to-GDP ratio indicates a country's ability to pay back its debt. It's not a hard and fast rule, but it is a good indicator.

Before the third bailout, Greece owed $38,444 (Dh141,210) for every man, woman and child. If the terms of the proposed third bailout are agreed, every Greek will be further $8,250 in the hole, thanks to Athens.

According to the latest statistics from the World Bank and the IMF, Japan is the world's most indebted country, with Tokyo owing $99,725 for every citizen.

In the red

If you're Indian, the New Delhi government has put you $946 in debt, according to 2014 data. Then, in total, the Indian government owed $1.75 trillion, representing a debt-to-GDP ratio of 68.1 per cent.

For every citizen of Pakistan, the Islamabad government owed $822. In 2014 terms, it owed $229.9 billion. In global terms, it's debt-to-GDP ratio is at 66.6 per cent.

The United Kingdom government owes $2.627 trillion with a debt-to-GDP of 95.3 per cent, according to 2014 data. In individual terms, London has put every one of its 64.4 million citizens $38,938 in debt.

Every American now owes $58,604 with a debt-to-GDP ratio of 107.3 per cent, while Canadians are $45,454 in the red, thanks to Ottawa owing $1.886 trillion, with a debt-to-GDP ratio of 85.6 per cent.

Citizens of Australia can reflect that the federal government in Canberra has a debt-to-GDP ratio of 34.26 per cent. Nevertheless, every Aussie can roo that they owe $18,110

Little Kiribati, a nation of islands in the Pacific, owes just $15 million to international creditors.

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Publication:Gulf News (United Arab Emirates)
Geographic Code:4EUGR
Date:Jul 16, 2015
Words:393
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