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US, China, and Japan cumulative national debt surpasses $50 trillion

US, China, and Japan cumulative national debt surpasses $50 trillion

The global national debt situation is heading into a crisis situation that has been complicated by the economic impact of the coronavirus pandemic. However, even established economies have not been spared as they record historic levels of debt.

According to data acquired by Finbold, the cumulative national debt of the United States, Japan, and China has hit $52.35 trillion as of November 2021. Over the past year, the debt has surged 11.6% from the November 2020 figure of $46.87 trillion. Therefore, the cumulative national debt has grown by a whopping $5.48 trillion in the last 12 months.

The U.S. accounts for the highest debt in 2021 at $28.95 trillion, a growth of 6.35% from a similar period last year. Japan’s debt has grown 23.39% to $15.14 trillion. Among the highlighted countries, China has the least national debt at $8.26 trillion, which grew $7.38 trillion from last year.

Pandemic’s role in surging national debt 

The research highlights how the recent economic crisis has contributed to the national debt surge. According to the research report:

“Overall, the pandemic resulted in widescale unemployment with businesses closing down, resulting in reduced tax revenues while increasing automatic stabilizer spending for unemployment insurance. Consequently, the countries faced budget deficits that have surged considering that they have instituted legislation to cushion the economy through stimulus packages.”

Just like other countries globally, the U.S., China, and Japan skyrocketing national debt has resulted in concerns regarding the threat posed by the debt. According to economists, spiking national debts might hamper growth which will potentially result in more debt.

Furthermore, a crisis can push countries to print more money which in return results in inflation. Generally, to manage the current debt situation, countries are compelled to observe transparency, restructure economic policies and work towards lowering the debt.

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