Which Countries Carry the Highest External Debt Load?

By Vipin Agnihotri

The India Street is back again with some interesting information for their readers. This time around it is countries with highest external debt. Take a look.

India-

Because of depreciating dollar, India's external debt has risen to $155 billion at the close of 2006-07. In terms of statistic, this is an increase of $28.6 billion over the previous year. What’s more, multilateral and bilateral debts have also witnessed moderate increase during 2006-07.

United States of America-

In June last year, American external debt stood at $12.249 trillion. In my opinion, soaring oil prices in 2005-2007 threatened inflation and unemployment in the US. It is worth mentioning in this regard that the steady fall of the US dollar this year has put the US economy at an advantage. This is because of the fact that US government can pay back a part of its huge external debt with a devalued currency.

United Kingdom-

In June 2006, UK's external debt stood at $8.280 trillion. Most of the experts are of the opinion that UK economy has passed its peak, with slower growth anticipated this year. There is a risk of a recession in the next two years.

Germany-

In June 2006, Germany's external debt stood at $3.904 trillion. In my opinion, German economy will slow sharply this year. Some of the important factors that has assisted Germany in cutting down its external debt are country had no property bubble and its workers have long settled for modest pay rises.

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