Whether a huge national debt indicates a bad economic situation in the country has been always a big question for me. Look at the list of top 5 countries with the highest external debt:
Or, if we take GDP into consideration,
Source: http://worldpopulationreview.com/countries/countries-by-national-debt/
Would it be right to suggest that economic situation in Sudan is somehow better than that in Japan?
Or, if we take GDP into consideration,
Source: http://worldpopulationreview.com/countries/countries-by-national-debt/
Would it be right to suggest that economic situation in Sudan is somehow better than that in Japan?
You should always take GDP in consideration when looking at country debt. But of course you also need to look how is debt structured. But there are also other things important. Japan is quite deep in shit. Their population is aging fast. Sudan have one of youngest population on world. Also debt dont make economic situation worse, but better. Paying that debt off will make it worse.