The United States holds significantly more total national debt than Canada, both in absolute terms and relative to its economy. As of 2025-2026, the US national debt is over $ 36 $ 3 6 trillion, compared to Canada’s total government debt of approximately $ 2.5 $ 2 . 5 trillion (CAD), with the U.S. having a higher debt-to-GDP ratio.
Canada's debt-to-GDP ratio is about 42%, compared to over 100% in the U.S. Canadian borrowing costs are 1.2% lower than U.S. costs, the widest gap since 1870. A spike in trade uncertainty could cut Canadian business investment by 25%.
What is the Country with the Highest Public Debt Level? Japan is the country expected to have the world's highest public debt-to-GDP ratio this year, 242%. This high debt burden is relatively recent: In 1990, the ratio was only around 50% of GDP.
As of 2021 (the latest available data), federal debt reached 115 percent of gross domestic product (GDP), ranking 16th highest out of 164 countries for which the IMF has data. Japan tops the ranking with central government debt of 221 percent of GDP, followed by Greece, Sudan, Eritrea, and Singapore.
2. Who are the creditors of this debt? The debt is made up of government bonds held by individuals and financial institutions, mostly Canadian (around two-thirds of Canadian government securities are held by Canadian investors, such as insurance companies, pension funds, and financial institutions).
Foreign holdings
Including both private and public debt holders, the top three December 2020 national holders of American public debt are Japan ($1.2 trillion or 17.7%), China ($1.1 trillion or 15.2%), and the United Kingdom ($0.4 trillion or 6.2%).
During Prime Minister Justin Trudeau's tenure, federal per-person debt increased by 35.3 per- cent between 2015 and 2022.
Despite any federal assurances, the federal deficit is still projected at $78 billion for 2026, narrowing only to $57 billion by 2030, and leaving Canada exposed to higher debt costs and weak growth.
Economies with the lowest government debt as a share of GDP 2025. In 2025, Liechtenstein was estimated to have the lowest debt-to-GDP ratio in the world, at just 0.5 percent, with Brunei having the second-lowest at 2.3 percent.
Key Drivers of the National Debt. What is causing the growth of our national debt? There are three primary drivers of the overall growth in spending: America's aging population, rising healthcare costs, and rapidly escalating interest costs.
The very poorest of the world's poorest countries, South Sudan has been wracked by violence since its creation in 2011.
Inflation under 2% is in green. In 2016, the GDP per capita in Canada was 44820 compared to 57638 in the US. This table show the same economic indicators in the United States in selected years between 1980 and 2017.
39% of Canadians aged 55-64 have less than $5,000 in savings (-5 pts); 73% have $100,000 or less in savings. More than one in three (36%) women aged 55-64 have no savings at all, compared to one in five (22%) men.
Inflation adjusted to the 2023 calendar year. As of April 2024, the five countries owning the most US debt are Japan ($1.1 trillion), China ($749.0 billion), the United Kingdom ($690.2 billion), Luxembourg ($373.5 billion), and Canada ($328.7 billion).
Between 1997 and 2008, $105 billion of the federal debt was repaid, dropping to $457.6 billion in 2007-08. Between 2008 and 2015, more than $150 billion was added back onto the federal debt, leaving it at $612 billion. According to the 2015 budget, balance had been reached.
The United States, Canada, Japan, South Korea, Turkey, the Southern Cone, Western European countries and other allies represented the "First World", while the Soviet Union, China, Cuba, North Korea, Vietnam, and their allies represented the "Second World".
“Deep recession” is another name for an economic depression, which is an unusually severe recession. There's no formal definition, but some people define a depression as a recession where GDP declines 10%. Depression in Canada in 2025 is highly unlikely but not impossible.
Among the provinces, Newfoundland and Labrador ($20,544) recorded the highest net debt per capita in 2024, followed by Manitoba ($19,327), Ontario ($17,961) and Quebec ($17,856). The lowest net debt per capita was in Alberta ($1,972), followed by British Columbia ($2,871).
The debt ratio stabilized at a relatively high level after the crisis until the pandemic. The massive increase in debt during the pandemic and subsequent government spending raised the overall federal-provincial net debt ratio to about 75 percent of GDP, nearing levels from the time of the “Debt War” conference.
The primary lenders of the Canadian government are domestic and foreign financial institutions. These include big corporations, insurance companies, banks, investment funds, pension funds, etc. These financial institutions buy bonds and treasury bills from the government.
We have slower income growth, so we have fewer resources with which to pay our debt. Paul Solman: That is fewer tax revenues, which would mean borrowing even more. Plus, lower growth means less demand from businesses to borrow money for investment, which also tends to lower rates.
If China embarked on a mass sale of its US treasuries, the value of the debt would plunge and yields would soar. This would drive up US government borrowing costs and hammer the public finances in a highly destabilising move. But the scenario is highly unlikely, not least because the pain for China would be huge.
Over the 12 months from the close of trading on Jan. 17, 2025, to the end of day Jan. 15, 2026, the federal government added approximately $2.25 trillion to the national debt, according to calculations shared exclusively with Fortune by the Peter G. Peterson Foundation.