Ranked: The Top 20 Countries Holding the Most U.S. Debt

Bruno Venditti
2025-03-13 09:13:00
www.visualcapitalist.com

Top 20 Countries Holding the Most U.S. Debt

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The United States owes foreign investors $8.5 trillion of its national debt—almost one-quarter of its total debt.

The graphic above illustrates the foreign holders of U.S. national debt using data from the U.S. Department of the Treasury, as of December 2024.

The Growing U.S. Debt

The U.S. debt increases when the government spends more than it collects in taxes and other revenue. To cover this shortfall, the U.S. Treasury issues Treasury bills, notes, and bonds. These securities are highly liquid, widely used by central banks as reserves, and favored by investors during market volatility.

The national debt is the total of the government’s accumulated budget deficits, minus any surpluses.

As of today, the U.S. national debt has surpassed $34 trillion and, according to projections from the Congressional Budget Office, could reach $50 trillion within the next decade.

Japan is the largest foreign holder of U.S. debt, with over $1 trillion, followed by China ($759 billion) and the United Kingdom ($723 billion).

Country	December 2024 (USD)
Japan	$1T
China	$759B
UK	$723B
Luxembourg	$424B
Cayman Islands	$419B
Canada	$379B
Belgium	$375B
Ireland	$336B
France	$332B
Switzerland	$289B
Taiwan	$282B
Hong Kong	$255B
Singapore	$249B
India	$219B
Brazil	$202B
Norway	$158B
Saudi Arabia	$138B
South Korea	$125B
Mexico	$103B
Germany	$97B
Rest of World	$1.6T
Total	$8.5T

Does the U.S. Need to Pay Off Its Debt?

Technically, the U.S. must pay interest on its debt and the principal of maturing government bonds. However, as reported by Business Insider, it is rare for nations to fully pay off their debt. For example, Great Britain still holds debt from the Napoleonic Wars.

More important than the total debt is its relationship to GDP—in other words, how much the country’s resources can cover interest and principal payments on that debt.

The U.S. debt-to-GDP ratio was approximately 98% at the end of FY 2024—just below the critical 100% threshold, which some experts consider a warning sign.

Debt Under Trump

Another way to contain the growth of debt would be by reducing federal spending.

To achieve this, the new Trump administration established the Department of Government Efficiency (DOGE).

Under Elon Musk’s leadership, DOGE has already targeted several federal agencies. The department’s goal is to identify and eliminate unnecessary expenditures, with Musk estimating potential savings of $2 trillion in government “waste.”

Learn More on the Voronoi App

To learn more about this topic, check out this graphic where we break down the U.S. debt composition by domestic and foreign investors, as well as intragovernmental holdings.

The post Ranked: The Top 20 Countries Holding the Most U.S. Debt appeared first on Visual Capitalist.

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