Budget Deficit By Country As Percentage Of GDP

Budget Deficit By Country As Percentage Of GDP

Percentage of GDP Represented by Budget Deficits Across Countries

A nation’s fiscal health is gauged through the assessment of budget surpluses or deficits, representing the variance between government revenues and expenditures. Typically presented as a percentage of the Gross Domestic Product (GDP), positive figures denote surpluses, while negative values indicate budget deficits. States with deficits, where expenditures surpass revenues, face challenges requiring financial reform to enhance their overall economic well-being. The cumulative federal deficits are referred to as the “national debt.”

The countries grappling with significant deficits relative to GDP encounter various complications hindering optimal economic growth. Currently, Timor-Leste claims the highest national deficit, standing at -76.1% of its GDP, followed by South Sudan (-62.5%), Libya (-52.2%), Venezuela (-48%), and Afghanistan (-24.6%). Notably, the Middle East and Africa dominate this list, reflecting a convergence of developing economic structures and frequent civil conflicts, creating financially challenging circumstances for many nations in these regions.

 

Exemplary Instances of Factors Leading to High National Debt

To comprehensively grasp the common causes behind substantial deficits, we delve deeply into two nations, Syria and Egypt, experiencing notably elevated relative national deficits. These cases serve as illuminating studies, each representing distinct environments that ultimately lead to sizable national deficits.

  1. Civil Conflict in Syria: Syria has endured a prolonged domestic crisis, significantly impacting the nation. The ongoing civil conflicts have prompted various measures to address the country’s precarious security situation. Key contributors to Syria’s budget deficit include a scarcity of funds stemming from disrupted trade and reduced tax capacity, compounded by the persistent threat of terrorism.

    Regrettably, the civil war and sporadic terrorist attacks have forced many citizens, including influential business figures, to seek refuge beyond Syria’s borders. This exodus has substantially diminished capital and funding for the country, perpetuating the financial challenges. Despite promises from Syrian leaders for a brighter future, the population continues to disperse globally in search of safety and refuge. The fundamental factors driving this chain of events are rooted in the impact of war, an unstable infrastructure, and a lack of both domestic and foreign investment needed to secure funds for national development.

  2. Economic Challenges in Egypt (Not Explicitly Discussed, Suggested for Inclusion): Egypt, facing its own set of economic challenges, provides another archetypal example. Factors such as inadequate revenue generation, heavy reliance on subsidies, and a high level of public debt have contributed to Egypt’s significant budget deficit. Additionally, political instability and fluctuating global commodity prices further exacerbate the economic predicament.

    Both Syria and Egypt exemplify how internal strife, disrupted economic activities, and inadequate financial structures can lead to substantial national deficits, illustrating the need for comprehensive economic reforms and sustainable development strategies.

 

Egypt’s Energy Dilemma

In the Middle East, Egypt grapples with a severe economic setback characterized by overwhelming debts. While not entangled in a primary role in major conflicts like Syria, Egypt faces distinctive financial challenges primarily stemming from unbalanced governmental expenditures. Unlike its neighboring nations that dominate the global energy market, Egypt finds itself in the throes of an energy crisis, struggling to generate the necessary power to sustain its economy. Despite this predicament, Egyptians harbor aspirations for a brighter future, envisioning negotiations for increased funding for domestic development and an amplified cultural influence on the global stage. Demonstrating a commitment to honoring financial obligations, Egypt strategically prioritizes repayment plans as a pivotal element in its broader recovery efforts.

 

Common Challenges among Global Debt-Ridden Nations

Countries with substantial deficits as a percentage of GDP encounter formidable hurdles as they endeavor to recover from significant losses. The emergence of conflicts, such as the situation in Syria, exacerbates these challenges. As the Syrian population seeks refuge in safer havens, the labor force diminishes, compounding the complexity of devising effective recovery plans. In the case of Egypt, the government is actively addressing its energy crisis as a fundamental step towards national improvement. In numerous countries grappling with extensive debt, governments tirelessly explore strategies to overcome financial burdens while simultaneously fostering economic growth.

 

Budget Deficit By Country As Percentage Of GDP

Rank Country Deficit (As % of GDP)
1 Timor-Leste -76.1
2 South Sudan -62.5
3 Libya -52.2
4 Venezuela -48.0
5 Afghanistan -24.6
6 Oman -21.8
7 The Gambia -19.5
8 Republic of the Congo -17.9
9 Brunei -16.8
10 Djibouti -16.0
11 Iraq -15.3
12 Mongola -15.2
13 Algeria -13.8
14 Bahrain -13.6
15 Greenland -13.5
16 Saudi Arabia -13.0
17 Niue -12.6
18 Swaziland -12.3
19 Yemen -11.8
20 Eritrea -11.4
21 Kuwait -11.0
22 Zimbabwe -9.9
23 Egypt -9.8
24 Zambia -9.8
25 Syria -9.7
26 Lebanon -9.5
27 British Virgin Islands -9.1
28 Suriname -8.1
29 Ghana -7.9
30 Ecuador -7.5

Leave a Reply

Your email address will not be published. Required fields are marked *