Published on 2 Apr 2024 on Insider Monkey via Yahoo Finance

15 Countries with the Largest Budget Deficit as a Percent of GDP

In this article, we will look at the 15 countries with the largest budget deficit as a percentage of GDP. If you want to skip our detailed analysis, you can go directly to the 5 Countries with the Largest Budget Deficit as a Percentage of GDP. 

A budget deficit occurs when the government's spending on public service, infrastructure, and other projects exceeds its revenue over a period, thus resulting in a negative balance of payment. While a budget deficit can bring positive effects on the economy in a short-term analysis by increasing aggregate demand, uplifting an economy from a recession, and increasing government spending. It is contagious in the long run for the economy's overall health and can lead to higher borrowing, higher interest payments, and low investment rates. Even some of the leading global economies, including the United States and China, are not immune to the challenge of having a budget deficit. According to the IMF, the Asia-Pacific region is on track to contribute two-thirds to global growth in 2024. However, a majority of our countries with the largest budget deficit as a percentage of GDP belong to the Asia-Pacific region.

Asia Leading the Global Economic Growth