With debt at about 128% of GDP, the United States sits alongside France, Italy, and the United Kingdom—not in isolation. Japan stands out with a debt-to-GDP ratio of over 230%, but faces no immediate financing pressures. Why?
Because dependence on foreign countries – and never absolute debt – is the true obstacle.
China: about 102% debt to GDP, of which about 3% is foreign-owned
Japan: about 230% debt to GDP, of which about 12% is in foreign hands
United States: about 128% debt to GDP, of which about 22% is foreign owned
The United States is unusual: It carries a heavy debt burden but stays predominantly domestically financed.
This composition is way more essential than the headline number. Foreign debt also decreased in percentage terms from 2019 to 2025, as the next figure shows.
