The United States has the largest external debt in the world. As of June 2020, the total of U.S. Treasury securities held by foreign countries was $7.04 trillion , up from $6.63 trillion in June 2019. In 2017, the US debt-to-GDP ratio was ranked 43rd highest out of 207 countries.

That’s because as a country’s economy grows, the amount of revenue a government can use to pay its debts grows as well. In addition, a larger economy generally means the country’s capital markets will grow and the government can tap them to issue more debt.

Foreign holders of United States treasury debt Of the total 7.2 trillion held by foreign countries, Japan and Mainland China held the greatest portions. In 2020, the United States had a total public national debt of 26.95 trillion U.S. dollars, an amount that has been rising steadily, particularly since 2008.

The United States owes money to many countries, including Japan, mainland China, the U.K., Ireland, Luxembourg, Brazil, Switzerland and Belgium, among others.

Debt is good – for both personal finance and U.S. economic growth. After all, consumer spending accounts for 70 percent of the U.S. economy.

China takes the top spot among foreign holders of U.S. debt with $1.24 trillion in Treasury holdings as of June 2016. China trimmed its holdings 2.4% year-over-year, making it an owner of 6.4% of the total U.S. government debt and 19.8% as a percentage of total foreign holdings.

The public holds the rest of the national debt of $16.1 trillion. Foreign governments and investors hold 30% of it. Individuals, banks, and investors hold 15%. The Federal Reserve holds 12%.

The United States (US)