Developing countries pay the highest interest payments on public debt as a share of their gross domestic product (GDP), with Zambia paying the highest rate at ***** percent. Many developing countries rely on public debt to finance key investments, but a high debt burden means that funds need to be allocated to debt repayments.

In 2019, Interest Payments on Government Debt in Zambia jumped by 33.9points from a year earlier.

The Latin American countries Brazil and Mexico pay the highest sum in public debt interest as a share of their gross domestic products (GDP) among the G20 member countries. Meanwhile, Saudi Arabia ad South Korea had negative ratios, meaning that they received more payments than they paid themselves. Worldwide, Zambia paid the highest public debt interest payments in terms of its GDP.

Among the largest economies worldwide, Italy has the highest public debt interest payment to gross domestic product (GDP) ratio. In 2023, Italy paid *** percent of its GDP in public debt interest payments. Among the countries in the list, Japan had the lowest public debt interest payment to GDP ratio, at **** percent.

Nepal NP: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 35.343 USD mn in 2016. This records an increase from the previous number of 32.390 USD mn for 2015. Nepal NP: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 25.917 USD mn from Dec 1970 (Median) to 2016, with 47 observations. The data reached an all-time high of 35.778 USD mn in 2013 and a record low of 0.101 USD mn in 1971. Nepal NP: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Nepal – Table NP.World Bank: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Jordan JO: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 283.894 USD mn in 2016. This records an increase from the previous number of 282.456 USD mn for 2015. Jordan JO: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 172.734 USD mn from Dec 1970 (Median) to 2016, with 47 observations. The data reached an all-time high of 394.936 USD mn in 1998 and a record low of 1.793 USD mn in 1970. Jordan JO: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Jordan – Table JO.World Bank: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Graph and download economic data for Federal Outlays: Interest as Percent of Gross Domestic Product (FYOIGDA188S) from 1940 to 2024 about outlays, percent, federal, interest, GDP, and USA.

CN: External Debt: INT: Interest Payments: General Government Sector data was reported at 1.600 USD bn in 2031. This records a decrease from the previous number of 12.443 USD bn for 2030. CN: External Debt: INT: Interest Payments: General Government Sector data is updated yearly, averaging 1.448 USD bn from Dec 1981 (Median) to 2031, with 51 observations. The data reached an all-time high of 13.199 USD bn in 2024 and a record low of 63.918 USD mn in 1981. CN: External Debt: INT: Interest Payments: General Government Sector data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s China – Table CN.World Bank.IDS: External Debt: Disbursements and Interest Payment: Annual. General government long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.

The long-term interest rate on government debt is a key indicator of the economic health of a country. The rate reflects financial market actors' perceptions of the creditworthiness of the government and the health of the domestic economy, with a strong and robust economic outlook allowing governments to borrow for essential investments in their economies, thereby boosting long-term growth.

The Euro and converging interest rates in the early 2000s

In the case of many Eurozone countries, the early 2000s were a time where this virtuous cycle of economic growth reduced the interest rates they paid on government debt to less than 5 percent, a dramatic change from the pre-Euro era of the 1990s. With the outbreak of the Global Financial Crisis and the subsequent deep recession, however, the economies of Greece, Italy, Spain, Portugal, and Ireland were seen to be much weaker than previously assumed by lenders. Interest rates on their debt gradually began to rise during the crisis, before rapidly increasing beginning in 2010, as first Greece and then Ireland and Portugal lost the faith of financial markets.

The Eurozone crisis

This market adjustment was initially triggered due to revelations by the Greek government that the country's budget deficit was much larger than had been previously expected, with investors seeing the country as an unreliable debtor. The crisis, which became known as the Eurozone crisis, spread to Ireland and then Portugal, as lenders cut-off lending to highly indebted Eurozone members with weak fundamentals. During this period there was also intense speculation that due to unsustainable debt loads, some countries would have to leave the Euro currency area, further increasing the interest on their debt. Interest rates on their debt began to come back down after ECB Chief Mario Draghi signaled to markets that the central bank would intervene to keep the states within the currency area in his famous "whatever it takes" speech in Summer 2012.

The return of higher interest rates in the post-COVID era

Since this period of extremely high interest rates on government debt for these member states, the interest they are charged for borrowing has shrunk considerably, as the financial markets were flooded with "cheap money" due to the policy measures of central banks in the aftermath of the financial crisis, such as near-zero policy rates and quantitative easing. As interest rates have risen to combat inflation since 2022, so have the interest rates on government debt in the Eurozone also risen, however, these rises are modest compared to during the Eurozone crisis.

In 2023, the U.S. government spent a total of 875 billion U.S. dollars on interest of public debt. 497 billion U.S. dollars was on interest for debt held by the public.

The national debt of the United Stated can be found here.

Egypt Debt Service: Government: Annual: Interest: Paid data was reported at 1.083 USD bn in 2017. This records an increase from the previous number of 835.800 USD mn for 2016. Egypt Debt Service: Government: Annual: Interest: Paid data is updated yearly, averaging 645.100 USD mn from Jun 2001 (Median) to 2017, with 17 observations. The data reached an all-time high of 1.083 USD bn in 2017 and a record low of 578.100 USD mn in 2005. Egypt Debt Service: Government: Annual: Interest: Paid data remains active status in CEIC and is reported by Central Bank of Egypt. The data is categorized under Global Database’s Egypt – Table EG.F018: Government Debt Service. Interest Paid includes interest payments on Egyptian bonds and notes floated abroad.

Germany DE: Expenditure: Interest Payments data was reported at 16,690.000 EUR mn in 2022. This records an increase from the previous number of 10,407.000 EUR mn for 2021. Germany DE: Expenditure: Interest Payments data is updated yearly, averaging 20,492.000 EUR mn from Dec 1972 (Median) to 2022, with 51 observations. The data reached an all-time high of 45,812.000 EUR mn in 1998 and a record low of 1,559.440 EUR mn in 1972. Germany DE: Expenditure: Interest Payments data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Germany – Table DE.World Bank.WDI: Government Revenue, Expenditure and Finance. Interest payments include interest payments on government debt--including long-term bonds, long-term loans, and other debt instruments--to domestic and foreign residents.;International Monetary Fund, Government Finance Statistics Yearbook and data files.;;

Chad TD: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 131.269 USD mn in 2018. This records an increase from the previous number of 114.540 USD mn for 2017. Chad TD: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 4.478 USD mn from Dec 1970 (Median) to 2018, with 49 observations. The data reached an all-time high of 131.269 USD mn in 2018 and a record low of 0.047 USD mn in 1980. Chad TD: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Chad – Table TD.World Bank.WDI: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Ethiopia ET: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 397.416 USD mn in 2016. This records an increase from the previous number of 302.586 USD mn for 2015. Ethiopia ET: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 43.328 USD mn from Dec 1970 (Median) to 2016, with 47 observations. The data reached an all-time high of 397.416 USD mn in 2016 and a record low of 6.271 USD mn in 1970. Ethiopia ET: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Ethiopia – Table ET.World Bank: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Laos LA: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 138.296 USD mn in 2016. This records an increase from the previous number of 103.727 USD mn for 2015. Laos LA: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 4.583 USD mn from Dec 1970 (Median) to 2016, with 47 observations. The data reached an all-time high of 138.296 USD mn in 2016 and a record low of 0.182 USD mn in 1970. Laos LA: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Laos – Table LA.World Bank: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Mexico MX: Expenditure: Interest Payments data was reported at 597,090.096 MXN mn in 2017. This records an increase from the previous number of 465,694.963 MXN mn for 2016. Mexico MX: Expenditure: Interest Payments data is updated yearly, averaging 43,244.000 MXN mn from Dec 1972 (Median) to 2017, with 39 observations. The data reached an all-time high of 597,090.096 MXN mn in 2017 and a record low of 5.000 MXN mn in 1972. Mexico MX: Expenditure: Interest Payments data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Mexico – Table MX.World Bank.WDI: Government Revenue, Expenditure and Finance. Interest payments include interest payments on government debt--including long-term bonds, long-term loans, and other debt instruments--to domestic and foreign residents.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files.; ;

Mali ML: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 38.133 USD mn in 2016. This records an increase from the previous number of 32.492 USD mn for 2015. Mali ML: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 17.424 USD mn from Dec 1970 (Median) to 2016, with 47 observations. The data reached an all-time high of 59.093 USD mn in 1996 and a record low of 0.411 USD mn in 1970. Mali ML: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Mali – Table ML.World Bank: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Yemen YE: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 30.929 USD mn in 2016. This records a decrease from the previous number of 74.160 USD mn for 2015. Yemen YE: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 30.929 USD mn from Dec 1970 (Median) to 2016, with 47 observations. The data reached an all-time high of 77.469 USD mn in 2014 and a record low of 0.000 USD mn in 1970. Yemen YE: External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Yemen – Table YE.World Bank: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Afghanistan External Debt: INT: Interest Payments: Public and Publicly Guaranteed data was reported at 7.973 USD mn in 2018. This records a decrease from the previous number of 8.068 USD mn for 2017. Afghanistan External Debt: INT: Interest Payments: Public and Publicly Guaranteed data is updated yearly, averaging 4.899 USD mn from Dec 1981 (Median) to 2018, with 27 observations. The data reached an all-time high of 9.146 USD mn in 2014 and a record low of 0.341 USD mn in 1982. Afghanistan External Debt: INT: Interest Payments: Public and Publicly Guaranteed data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Afghanistan – Table AF.World Bank.WDI: External Debt: Disbursements and Interest Payment. Public and publicly guaranteed long-term debt are aggregated. Public debt is an external obligation of a public debtor, including the national government, a political subdivision (or an agency of either), and autonomous public bodies. Publicly guaranteed debt is an external obligation of a private debtor that is guaranteed for repayment by a public entity. Interest payments are actual amounts of interest paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

Germany DE: Expenditure: Interest Payments: % of Expenditure data was reported at 1.342 % in 2022. This records an increase from the previous number of 0.865 % for 2021. Germany DE: Expenditure: Interest Payments: % of Expenditure data is updated yearly, averaging 5.168 % from Dec 1972 (Median) to 2022, with 51 observations. The data reached an all-time high of 7.174 % in 1998 and a record low of 0.865 % in 2021. Germany DE: Expenditure: Interest Payments: % of Expenditure data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Germany – Table DE.World Bank.WDI: Government Revenue, Expenditure and Finance. Interest payments include interest payments on government debt--including long-term bonds, long-term loans, and other debt instruments--to domestic and foreign residents.;International Monetary Fund, Government Finance Statistics Yearbook and data files.;Median;