At roughly 128% debt-to-GDP, the United States sits alongside France, Italy, and the United Kingdom — not in isolation. Japan stands out at over 230% debt-to-GDP, yet faces no immediate funding stress. Why?
Because foreign dependence — not absolute debt — is the real constraint.
China: roughly 102% debt-to-GDP, with about 3% foreign-held
Japan: roughly 230% debt-to-GDP, with about 12% foreign-held
United States: roughly 128% debt-to-GDP, with about 22% foreign-held
The United States is unusual: it carries a large debt load, yet remains overwhelmingly domestically financed.
That composition matters far more than the headline number. The foreign debt also reduced in percentage from 2019 to 2025, as seen in the following figure.
