In these days the world’s economy is going through lots of changes and these changes are real struggle sometimes, that’s why it is worth reading Insider Monkey’s article published recently about the countries that have the most debts in 2017. There are rich countries that have difficulties in paying their debts, and there are some countries, where the GDP per capita is increasing significantly from day to day. GDP means a gross domestic product which is a measure of the total output of one country divided by the number of people who live in it. The GDP is mostly used while comparing one country to another to see the performance of the countries.
You may be thinking now how come that a country that has stable economy, struggles with its debts. Actually it is because the government spends lot more money than they can take from the citizens in the form of tax. In this case they can do three things: the tax can be increased, expenditure can be decreased or they borrow money. According to the latest statistics, the worldwide debt is about $200 trillion and this amount is rather alarming.
We have picked three countries from Insider Monkey’ list for now: Spain, Ireland, and Italy. Spain’s debt is $2.03 trillion, if we consider it per capita, it means $44,100. Even though the government and the opposition trust that Spain will be out of its Excessive Debt Procedure (EDP) in two years, today Spain is one of the countries with most debt. Ireland struggles with a debt of $2.23 trillion, it’s $471,000 per capita. The International Monetary Fund (IMF) is expecting the Irish economy to grow by 3.5% this year, and 3.2% the year after, Ireland is still one of the countries with the most debt. The expectation IMF has for the Irish economy is significantly lower than the Department of Finance predicts, which is 4.3% in 2017. Italy has a debt of $2.23 trillion, and it means $37,900 debt per capita, but because of the overall external debt. The GDP percent in Italy is 133 and it is struggling to stay competitive internationally and it goes from bad to even worse. According to the European Commission, Italy’s GDP has risen up to 0.9% this year, and it is expected to rise by 1.1% next year.
For any further interesting and edifying facts, you should read Insider Monkey’s article about 10 countries that have the most debt in 2017.