10 Countries With Highest Debt In The World

By siliconindia | Thursday, 12 September 2013, 12:36 Hrs

6. Romania

Rank-6

Gross foreign debt and foreign debt payments- 99 percent

Romania saw a severe economic contraction after managing a constant economic growth from 2001-2008. As a measure to reinforce the economy, nominal wages were decreased and taxes increased, with the latter resulting into decrease in investment. Although the macroeconomic policy helped rebuild the economy in 2010, the success of it will highly depend on raising human capital, reducing transaction cost for businesses and developing infrastructure.

7. Pakistan

Rank-7

Gross foreign debt and foreign debt payments- 90 percent

The economic growth of Pakistan has been very slow of about average 3 percent per year from 2008-12. Due to economic and political volatility, the Pakistani rupee has seen a dip of more than 40 percent since 2007. About 50 percent of the country’s population is under poverty as of 2011, according to UN Human Development Report. Inflation also shot up to 12 percent in 2011 from 7.7 percent in 2007, before coming down to 10 percent in 2012.