US' external debt at $25.8 trillion in 2025, reveals study; check list of top 10 wealthy nations with most debt

The richest country with the most debt in 2025 is the United States, with $25.8 trillion in external debt, a new study by Falcon Funded, a prop trading firm, revealed. The firm said the methodology for data collection included GDP figures, external debt totals, economic freedom indices, inflation rates, and a specialised Financial Stress Score.

List of top 10 rich countries with the most debt in 2025

1. The United States leads the ranking with a Financial Stress Score of 100, driven by its massive external debt of $25.8 trillion, the highest in the world. It maintains a relatively balanced debt-to-GDP ratio compared to other top debtor nations. It also shows moderate economic freedom and currently manages inflation at a stable 2.4 per cent.

2. Singapore ranks second with a Financial Stress Score of 75.75. It has the most pronounced imbalance between debt and economic size among the top 10, with external debt surpassing its GDP by more than four times. However, unlike the US, Singapore counters this strain with the highest economic freedom score in the group and exceptionally low inflation, currently at just 0.9 per cent.

3. The United Kingdom comes with a score of 74.09. The UK shoulders the third-largest absolute debt burden at $10.53 trillion, with obligations surpassing its economy by nearly 2.5 times. In comparison to Singapore, the UK exhibits a more modest economic freedom score while confronting slightly higher inflation at 2.8 per cent, which is a higher rate among European countries on the list.

4. France ranks fourth with a score of 64.57. French external obligations surpass its economic output by approximately 2.6 times, slightly more severe than the UK. The nation benefits from one of the lowest inflation figures among the top 10 at 0.8 per cent, significantly better than the UK.

5. Switzerland secures the fifth place with a score of 54.64. Switzerland's external debt follows a similar trend to France, surpassing the size of its economy by approximately 2.6 times. Unlike France, Switzerland has the lowest inflation rate in the top 10 at just 0.3 per cent and the second-highest economic freedom score after Singapore, significantly mitigating its debt burden.

6. Germany holds the sixth position with a score of 52.60. As Europe's largest economy, Germany exhibits a notably healthier balance than its continental neighbours, with external obligations surpassing its economy by only 1.6 times, much lower than Switzerland, France, or the UK. Germany outperforms France in economic freedom while maintaining moderate 2.2 per cent inflation.

7. Belgium ranks seventh with a score of 47.72. Belgian external obligations surpass its economy by approximately 2.5 times, similar to the UK pattern. The country goes through the highest inflation among European nations on the list at 2.9 per cent, slightly worse than the UK, while maintaining comparable economic freedom scores.

8. Finland secures eighth place with a score of 43.84. Finland’s external debt amounts to 2.3 times its GDP, but the country benefits from low inflation, just 0.5 per cent, the second-lowest after Switzerland’s exceptional stability. Additionally, Finland boasts greater economic freedom than Belgium and France, which helps mitigate the impact of its high debt levels.

9. Argentina has a score of 41.59, showcasing a contrast to all preceding nations with external obligations at less than half its economic output. This apparent advantage is completely overshadowed by inflation at 55.9 per cent and the weakest economic freedom score in the top 10, leading to significant financial stress despite having comparatively lower debt.

10. Canada ranks tenth, with a score of 40.12. Canadian external obligations surpass its economy by nearly 1.5 times, resembling Germany's more balanced approach rather than the severe imbalances observed in European countries such as France or the UK. The country, with strong economic freedom, has moderate inflation at 2.3 per cent and the lowest stress score despite substantial debt.

Use of ‘borrowed capital for productive investments than consumption’

“National debt levels have reached historically unprecedented territories, fundamentally altering the risk profile of even the most stable economies. While absolute debt figures matter, the true concern lies in sustainability metrics and how effectively countries leverage their borrowed capital for productive investments rather than consumption," a Falcon Funded spokesperson said.

"High-freedom economies with controlled inflation demonstrate remarkable resilience despite alarming debt ratios–suggesting that quality of governance may ultimately prove more decisive than the raw numbers in determining which nations navigate these turbulent financial waters successfully,” the firm added.