Almost every country has a government debt equivalent to at least 25% of its GDP, with some like Venezuela and Italy exceeding their total GDP, and global debt reaching $300 trillion or 356% of global GDP in 2021 after increases from the COVID-19 pandemic. While high-income countries can generally service their high debt-to-GDP ratios through diversified exports, low-income commodity-export dependent countries face volatile prices and currency devaluations that raise debt-servicing costs, occasionally requiring debt forgiveness to avoid economic crises.
Additional Links & Readings: