G7 Government Debt as % of GDP — 2025 (IMF World Economic Outlook)
📋 Among advanced economies, average government debt stands near 113% of GDP, led by Japan (230%), Italy (137%), and the United States (124%). The UK at ~98% is below the G7 average — but this uses the narrow PSND measure. Including off-balance-sheet liabilities the picture is considerably worse. See our Off-Balance-Sheet Debt page for the full picture.
G7 + Key Economies — Full Fiscal Scorecard 2025/26 (IMF Data)
| Country | Debt % GDP | Deficit % GDP | Interest % Revenue | GDP Growth | CPI 2025 | Verdict |
|---|---|---|---|---|---|---|
| 🇯🇵Japan | 237% | -3.9% | ~8% | +1.1% | 2.5% | Extreme debt but own currency/buyers |
| 🇮🇹Italy | 137% | -3.4% | ~12% | +0.6% | 1.9% | High risk — ECB support critical |
| 🇺🇸USA | 124% | -6.5% | ~14% | +2.0% | 2.9% | Reserve currency status provides buffer |
| 🇫🇷France | 112% | -5.1% | ~8% | +0.7% | 1.8% | Rising fast — political paralysis |
| 🇬🇧UK | 98% | -4.5% | ~8.5% | +1.3% | 2.6% | Interest burden highest in G7 |
| 🇨🇦Canada | 45% | -1.8% | ~5% | +1.2% | 2.7% | Best positioned G7 fiscally |
| 🇩🇪Germany | 64% | -2.0% | ~4% | +0.2% | 2.6% | Debt brake abandoned — rising fast |
| 🇦🇺Australia | 55% | -0.5% | ~4% | +1.5% | 3.2% | Strong position, commodity wealth |
| 🇳🇴Norway | 18% | +8% | <2% | +2.0% | 3.1% | Oil fund — £1.4tn sovereign wealth |
| 🇸🇪Sweden | 32% | -0.5% | <3% | +0.5% | 1.6% | Model fiscal discipline |
| 🇬🇷Greece | 162% | +0.5% | ~8% | +2.2% | 3.0% | Improving after 2012 crisis |
| 🇨🇳China | 84% | -4.7% | ~6% | +4.6% | 0.5% | Local govt hidden debt concern |
⚠️ The UK's distinctive problem is its interest burden, not its debt level. At ~8.5% of government revenue spent on debt interest, the UK has the highest interest-to-revenue ratio in the G7 — higher even than Italy and the US. This is because UK gilts have shorter average maturities and more index-linked bonds (sensitive to inflation) than comparable countries. High interest burden means less money for public services at any given tax level.
Debt % GDP — G7 Countries vs UK (2025)
✅ The UK's debt level (98% GDP) is actually below the G7 average of ~113%. Japan at 237% and Italy at 137% both carry far higher ratios. However debt level alone doesn't tell the full story — the UK's interest burden, short gilt maturities, and large off-balance-sheet liabilities make its fiscal position more precarious than the headline number suggests.
GDP Growth Comparison — G7 2019–2025 (%)
UK
USA
Germany
France
🚨 The UK's growth problem: The UK grew just 0.4% in 2023 — the weakest G7 performance outside Germany. Since the 2008 financial crisis the UK has consistently underperformed its pre-crisis trend growth rate. Cumulative output is around 20-25% below the pre-2008 trend path. This persistent growth shortfall directly drives the fiscal problem — slower growth means less tax revenue and a higher debt/GDP ratio.
Interest Payments as % of Government Revenue — G7 + Comparators 2025
Interest as % of Revenue (higher = worse)
UK highlighted
🚨 This is the UK's most alarming international comparison. Despite having lower debt/GDP than Japan, Italy and the USA, the UK spends a higher share of tax revenues on interest than almost any other advanced economy. The reasons: shorter average gilt maturity (so more refinancing at high rates), large stock of index-linked gilts (which surged in cost during 2022 inflation), and a relatively narrow tax base compared to Scandinavian peers.