According to calculations based on data from national central banks and statistical services, the level of external debt in relation to GDP in Russia reached a historic low of 16.6% at the end of 2022.
This represents a decrease of ten percentage points compared to the previous year and is the lowest value since 2002. Only China has a lower figure among the world’s largest economies, with external debt falling from 15.4% to 13.7% over the year, while India follows with external debt at 19.1% of GDP.
The decline in Russia’s external debt was accompanied by a slowdown in GDP, which increased by only 1.1% in annual terms. In contrast, the highest level of external debt was observed in European economies, with the Netherlands leading the list at 380.5% of GDP, followed by the United Kingdom at 287% and Switzerland at 280.5%. However, these countries saw a decrease in their external debt over the year, with reductions of 14.29 and 16 percentage points, respectively.
France ranked fourth with external debt at 249% of GDP, followed by Belgium at 242%. Spain, Sweden, Germany, Norway, and Italy rounded out the top ten, with external debt ranging from 131% to 179% of GDP. Out of the 25 countries studied, only five experienced an increase in debt to non-residents compared to GDP, with Japan experiencing the most significant rise of 10 percentage points to 104%.
While the level of debt in relation to GDP decreased in most countries, seven countries saw an increase in their external debt in absolute terms, including Norway, the United States, and South Korea, which increased by 5%, Turkey by 4.5%, Argentina by 3%, Brazil by 2%, and Poland by 1%.
The IMF predicts Russia’s external debit to GDP to again fall in 2023.
