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Latin American Countries With The Greatest Central Government Debt


Latin American Countries With The Greatest Central Government Debt

Argentina has the highest public debt in Latin America.

Global debt rose from $ 74 trillion in 1997 to $ 257 trillion in 2018, representing 317% of global GDP. Increasing debt is a trend that affects developed and developing countries and all sectors of the economy. The countries with the highest public debt / GDP ratio are Japan (237.69%), Sudan (207%), Greece (176.6% 4%), Eritrea (165.11%) and Lebanon (155.13%). . Latin America has been struggling with public debt since the Latin American Debt Crisis in the early 1980s. In 2019, central government gross public debt in Latin America accounted for an average of 41.9% of GDP. The level of borrowing varies from one country to another and reports recovery to 11 countries compared to 2018. Argentina has the highest public debt rate in about 86% of GDP. Brazil ranks second with 77.2%, followed by Costa Rica (52.9%), Columbia (50.7%), Uruguay (50.3) and Honduras (48.7%). Those with the lowest gross public debt are Paraguay (18.4%) and Peru (21.3%). In 2015, Venezuela’s debt / GDP ratio is about 31%, but it is currently estimated at 80% due to the country’s political crisis and hyperinflation.

Effects Of External Debt

Governments spend large sums to pay off foreign debt, which can damage fragile economies, especially in developing countries. In extreme conditions, high-debt countries may try to sell debt to the private sector or borrow from the World Bank and IMF. Venezuela attempted to print money to pay public debt, instead triggering more than a million percent hyperinflation. When the government spends most of what it collects to pay off its debt, it cannot finance development and public service.

Latin American Countries With The Greatest Central Government Debt


Argentina has the highest debt / GDP ratio in Latin America, with about 86% or $ 285 billion. The country is struggling with an economic crisis, which has seen that the pony has lost two thirds of its value since 2018. Inflation is about 30% and the economy has shrunk by 4% since 2015. Argentina’s external debt rose 60% between 2015-2019. Argentina has been in default eight times since independence in 1816, and in early 2020 it was about to default to another debt.Which Latin American nation has the highest foreign debt?,Which government has the most debt?,Which country has the biggest national debt?,What caused the Latin American debt crisis?,What is the lost decade in Latin America?,Why is it called the lost decade?,What country has no debt?,What country is the richest?,What country is in the least debt?,How Much Does China owe the US?,Who owns the world’s debt?,Who owns most of US debt?,How much is China’s debt?,Who owns Japan’s debt?,How much money does the US owe China 2020?,What triggered the debt crisis of 1982?,What caused the 1980s debt crisis?,What is the international debt crisis?


It is about 77.2% of Brazil’s public debt GDP, which is $ 1.34 trillion. The depth is expected to reach 81.8% by 2022 before it starts to decrease. Brazil debt reached a record 79.8% in August due to increased interest payments and a weak exchange rate before stabilizing at 77.2%. Brazil is borrowing from the international community to finance the financial deficit of approximately $ 112 billion in 2019. Unlike Argentina, Brazil pays its debts and is less likely to fall into default.

Costa Rica

Costa Rican public debt, which is about 52.9% of GDP and about $ 39 billion ‘equals. Most of the debt was made to finance the fiscal deficit, which rose to 6.96% of GDP in 2019. In February 2020, the Ministry of Finance has announced that it plans to use the profits derived from parastatal to pay outstanding interest. The government also announced that it plans to reduce tax evasion, reduce public spending and replace expensive debt. In addition to foreign debt, Costa Rica is struggling with inflation and rising unemployment.


Columbia’s public debt / GDP ratio of about 50.7%, or nearly 152 billion dollars. This is a slight drop from 52.16% in 2018 and a slight increase from 49.45% in 2017. Columbia is currently facing significant budget deficits. Columbia has experienced annual budget deficits over the past decade, which means it has led to more debt.


Uruguay’s public debt is about 50.3% of its GDP, or $ 28 billion. Like other countries in Latin America, Uruguay borrows to finance its financial deficit. At the close of 2019, the financial deficit was about 4.8% of GDP. Economy grew slowly over the last decade, but has risen over 50% of public spending in real terms. While public service spending increased by 16%, public benefit increased by 10%, putting more pressure on the government.

Latin American Countries With The Greatest Central Government Debt

Rank Latin American country Debt as share of GDP
1 Argentina 86%
2 Brazil 77.2%
3 Costa Rica 52.9%
4 Colombia 50.7%
5 Uruguay 50.3%

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