Despite being the world's largest economy, America's national debt has soared to historic levels following the COVID-19 pandemic and now exceeds a staggering $34 trillion ($26.7tn). As a percentage of gross domestic product (GDP), the nation's debt is the highest it's been since World War II. But who owns it?
American debt can be bought by anyone through US Treasury securities (bills, notes or bonds), which represent an IOU from the government to the investor. While most of the debt is owed domestically, foreign investors currently hold more than $8 trillion (£6.3tn), both through central banks and private funds. For many years, China, the world's second-largest economy, was America's biggest creditor, but frosty relations between the two superpowers have sparked some significant changes.
From the lowest to the highest, read on as we reveal the countries that hold the bulk of America's debt today, and find out where China figures in the rankings.
Based on the US Treasury’s most recent data from December 2023. All dollar amounts in US dollars.
The Vietnamese government has been increasing its holdings of America's national debt over the last 10 years. In December 2014, it had just $14 billion (£11bn) of US Treasury holdings compared to $30.7 billion (£24.1bn) in December 2023.
It's part of a wider recent expansion of the country's foreign exchange reserves – assets held by a central bank in a foreign country – and the State Bank of Vietnam expects this to continue in line with Vietnam's economic development. (It's one of the fastest-growing economies worldwide).
Peru has also increased its US Treasury holdings in recent years, from $19.3 billion (£15.1bn) in December 2019 to $32.5 billion (£25.5bn) four years later.
Boasting one of the strongest economies in South America, the Peruvian government has close ties with the US, one of its largest trading partners. In September 2023, the two nations signed a $20 million (£15.7bn) debt swap for Amazon conservation. The deal reduces Peru's debt payments to the US over the next 13 years, and in exchange, the money will go to a conservation fund to provide grants to protect and restore the country's tropical forests.
America and Chile have long had a strong economic relationship, including a free trade agreement that's been in place for more than 20 years. This helps encourage investments, including the South American country's $40.3 billion (£31.6bn) of US Treasury holdings.
In comparison, Chile's national debt is estimated at over $116 billion (£91bn) as of 2023 and is expected to grow over the next five years. The republic issued the first sustainability-linked bonds in Chilean pesos last summer, worth $2.2 billion (£1.7bn). These are linked to performance targets including a reduction in greenhouse gas emissions and an increase in the number of women holding board positions in market-reporting companies.
Colombia owned little, if any, US debt in the early 2000s, but quickly ramped up its spending on US Treasury securities to nearly $11.2 billion (£8.8bn) in 2008.
However, in 2016 it was one of several countries that sold off a hefty chunk of US debt in response to an economic downturn caused by crashing oil prices. By the end of 2023, Colombia's stake in US debt had risen to $40.7 billion (£31.9bn).
Poland has been among the top holders of US debt since 2003, with its holdings growing from $8.7 billion (£6.8bn) to a whopping $44.9 billion (£35.2bn) in December 2023.
Up until the pandemic, the former Soviet country had seen almost 30 years of continuous economic expansion and is considered a valuable trade partner for the US. The countries are also strong military allies; in 2023 the US agreed to lend Poland $2 billion (£1.6bn) to boost its military in the wake of the war in Ukraine, with the money going towards American-made weapons and defence services.
Italy reported its own national debt to be $3.1 trillion (£2.4tn) in November 2023, and there are fears the nation is heading toward another debt crisis and possibly a recession. Looking for ways to reduce the nation's mounting debt, Prime Minister Giorgia Meloni announced the government would sell off stakes in the national post office, rail, and energy companies.
Her political opposition has criticised these privatisation efforts, worth more than $21.6 billion (£16.9bn), noting they won't make much of a dent in the public debt.
Meanwhile, Italy holds $45.3 billion (£35.5bn) of US Treasury securities.
Oil transformed the small Gulf state of Kuwait, which has tied its economy to the black stuff despite attempts to divest over the last 40 years.
The Kuwait Investment Authority oversees one of the world’s largest sovereign funds with more than $803 billion (£629bn) in assets as of 2023, according to the Sovereign Wealth Fund Institute. A sizable chunk of that money is thought to be tied up in private investments in the US, in addition to Kuwait's $46.3 billion (£36.3bn) holding of US national debt.
The Swedish krona has seen its value decline against the euro in recent years. At the same time, the Scandinavian nation's economy has suffered due to high inflation, which is beginning to fall.
Nonetheless, high interest rates are still stifling growth. In response, the Swedish government raised $2 billion (£1.6bn) in a bond sale in January, almost half of which went to investors in Asia.
Meanwhile, Sweden holds $48 billion (£37.6bn) of US debt, making it one of America's most significant lenders.
Sweden's January bond sale took place amid a flurry of similar activity across Europe, including in Spain. The government raised €15 billion ($16.3bn/£12.8bn) in one day, with plans to issue another €55 billion ($47.8bn/£37.5bn) worth of government bonds later this year.
More government bonds were sold last year, but the central bank's governor has since called for plans to reduce the nation's deficit. Spain's national debt sat at $1.67 trillion (£1.3tn) as of September 2023.
On the flip side, the country owns $53.9 billion (£42.3bn) of America's national debt.
Israel holds around $55.4 billion (£43.4bn) of US-issued debt, which has grown over the last 20 years from just $12.2 billion (£9.6bn) in December 2003.
The US has also poured money into Israel's bonds following Hamas' attack in October last year. Of more than $6 billion (£4.7bn) dollars Israel has raised from foreign investors, at least $1 billion (£784m) has come from 15 US states and even counties.
Following the 1997 Asian Financial Crisis, the Philippines was one of many Asian countries that increasingly sought out US investments as a protective measure. Since 2008 it's been one of the top holders of America's national debt.
The two nations are increasingly close under President Ferdinand Marcos Jr., who took office in 2022. Last November they signed a nuclear cooperation pact, which provides US investment and technologies to help the Philippines transition to clean energy.
Over the last decade and a half, Australia has remained among the top holders of US debt. However, prior to January 2008, when its investments accounted for just $9.6 billion (£7.5bn) of the national debt, it didn't make the cut. Today that's steadily grown to $60.2 billion (£47.2bn).
Australia and America have a strong trade partnership that sees massive investments flow in both directions. In fact, the US Embassy in Australia valued the relationship at $1.6 trillion (£1.3tn). In addition, Australian companies employ approximately 150,000 people in America.
As of December 2023, Thailand owned $62.3 billion (£48.8bn) of America's national debt. This is actually a decrease from 2019, when the southeast Asian nation held as much as $95 billion (£74.5bn).
A lot of US money is also making its way into Thailand, mainly from the private sector and especially in the tech arena. Prime Minister Srettha Thavisin has met with executives from many of America's biggest companies, including Tesla and Meta, and the country has announced deals with Microsoft, Google, and Amazon totalling nearly $8.5 billion (£6.7bn).
The UAE held $64 billion (£50.2bn) of America's national debt in December 2023. However, it hasn't always been a regular investor.
Just over a decade ago, the UAE's Central Bank revealed it didn't own any public debt from the US government, claiming it offered too low a return on investment. By 2012, it had changed course with as much as $54 billion (£42.3bn) in Treasuries, which ballooned to $82 billion (£64.3bn) in 2015.
The Netherlands owns $73.5 billion (£57.6bn) worth of US Treasury securities as of December 2023, and these holdings have been steadily increasing over the past 20 years.
Meanwhile, analysts predicted the Netherlands would see high levels of borrowing in 2023, in part due to uncertainty around energy prices. In October, the Dutch government released its second-ever green bonds – the proceeds of which will go to "green" or climate-related spending – which raised nearly €5bn ($5.5bn/£4.3bn). According to the Dutch State Treasury Agency, the nation's outstanding debt is €394 billion ($430bn/£337bn) as of 29 February.
Mexico has historically been among the top 15 holders of US debt, but after reaching a peak of nearly $85 billion (£66.6bn) in early 2015, it's since reduced its holdings. The figure of $77.5 billion (£60.8bn) recorded in December 2023 marked the highest amount seen in nearly a decade.
Last year was a momentous one for trade between the neighbouring nations. Mexico became the top US trading partner at the beginning of 2023, overtaking China, with trade between the two countries totalling $263 billion (£206bn) during the first four months of the year.
Previously, the US Treasury included Bermuda’s holdings in a group of "Caribbean Banking Centers", which also included the Bahamas, the Cayman Islands, Netherlands Antilles, Panama, and the British Virgin Islands. The designation meant the group generally ranked among the top five biggest debt holders.
Now broken out by country, Bermuda ranks second out of the Caribbean regions for holding the most US debt, at $90.2 billion (£70.7bn).
Germany holds more than £100 billion (£78.4bn) of America's national debt. When US lawmakers struggled to come to an agreement about the nation's debt limit in early 2023, with the threat of default looming on 1 June, Germany's finance minister Christian Lindner spoke out about the risks and impacts to the global economy, saying: "Nobody would understand if domestic U.S. politics would cause further trouble for the global economy."
Similar to the Netherlands, Germany also saw its own national debt rise in 2023 due to the energy crisis, inflation, and high costs of borrowing. It plans to borrow less in 2024.
South Korea held $119 billion (£93.3bn) of America's national debt at the end of December 2023, but this figure is likely to be much higher as of 2024. Korean investors went on something of a buying spree at the beginning of 2024, anticipating a future US Federal Reserve interest rate cut.
A single brokerage firm announced it had purchased as much as KRW 400 billion ($305m/£239) worth of US Treasury securities in the first 45 days of 2024, more than half of what it sold in 2023. Meanwhile, another firm reported six-fold increases over 2023.
Norway has the world's largest sovereign wealth fund, valued at more than $1.5 trillion (£1.2tn). In late 2023, the fund posted record profits of $213 billion (£167bn), and these healthy returns have been attributed to tech stock growth.
Along with stakes in companies such as Microsoft and Apple, the fund has investments in 72 different countries, including $126.1 billion (£98.9bn) of America's national debt.
Among the Middle East countries, Saudi Arabia has long been the largest holder of US debt.
However, the kingdom has been selling off its shares, reducing its holdings to $109.2 billion (£85.6bn) in summer 2023, the lowest amount it’s held since 2016. While some speculated this was a move to diversify away from the US dollar, by the end of the year that figure had increased to $131.9 billion (£103bn).
Singapore has consistently been among the top 15 holders of America's national debt over the last two decades, with securities worth $199.2 billion (£156bn) by the end of 2023.
As America's relationship with Beijing continues to cool, the southeast Asian nation stands to benefit. In addition to its government-backed investments, Singapore's sovereign wealth fund is eyeing American tech firms and venture capital funds that are seeking investors outside of China.
For more than a decade, Brazil had been one of the top five investors when it came to US Treasuries. However, the South American nation sold off $21.5 billion (£16.9bn) of its shares in 2021 to help cover economic losses due to its currency losing value, as well as a wider economic downturn.
From a peak in 2018, when Brazil was the third largest holder of America’s public debt with nearly $314 billion (£246bn), its holdings have been reduced to $230.3 billion (£180bn) as of December 2023.
China was the biggest holder of America's national debt for many years until it began selling off its share. This trend continued in 2023, with mainland China shedding billions of dollars of its US Treasuries.
Conversely, tracked separately by the US Treasury, Hong Kong has steadily increased its holdings from $185 billion (£145bn) in October 2018 to $233.7 billion (£183bn) in December 2023.
India, too, has been bolstering its share of America's national debt over the last year. As of December 2023, India held $233.7 billion (£183bn) of these bonds, bills, and notes.
Despite the increase, among the Reserve Bank of India's $590 billion (£463bn) total holdings, the share of US Treasury securities has actually reduced as a percentage thanks to a recent shopping spree. The bank bought nine tonnes of gold last summer – part of a wider trend among central banks worldwide.
Mirroring the situation in South Korea, Taiwanese investors are rushing to purchase US Treasury securities, hoping to secure higher yields before any potential cuts to interest rates.
As of December 2023, government and private investors based in Taiwan held $252.5 billion (£198bn) of America's public debt. Reports from Bloomberg claim the country is the leader in Asia when it comes to the rush for foreign bond investments at the start of 2024.
French investors have also been keen to scoop up shares of America's debt. At the start of 2023, France held just under $184 billon (£144bn), which grew to $260 billion (£204bn) by the end of the year.
France itself has one of the world's largest bond markets – certainly the largest in Europe – with public debt exceeding €3 trillion ($3.3tn/£2.6tn) for the first time in 2023.
Switzerland, on the other hand, has relatively low levels of public debt, which it maintained even through the COVID-19 pandemic when other countries rapidly increased their spending. For 2023, this was an estimated CHF 127 billion ($145bn/£114bn).
When it comes to buying up America's debt, Switzerland has long been among the top holders of US Treasury securities, with $287.6 billion (£225bn) at the end of 2023.
It may seem surprising that a country with a population of fewer than 70,000 people is so high up on the list of US debt holders. However, the Cayman Islands is one of the biggest financial centres in Latin America and a global leader for off-shore investments due to its reputation as a tax haven.
The large majority of Cayman Island debt holders aren't residents, but rather investors from all over the world. Along with Luxembourg, it's one of the most popular places for domicile hedge funds.
Just over 10 years ago, China and Japan both held more than a trillion dollars of US debt – four times as much as Belgium, which was then the third-largest holder of US debt with $335.4 billion (£263bn).
By the end of 2015, the European country’s holdings amounted to less than half of that. Analysts speculated the selloff was actually down to Chinese investors, who started keeping US Treasuries in Belgian accounts around 2011.
As of December 2023, Belgium held $314.4 billion (£246bn) of America's public debt, though it's uncertain how much of this is actually Chinese-owned.
Ireland is home to the European operations of a number of US and other multinational companies such as Facebook, Alphabet (Google's parent company), and Apple. These businesses can take advantage of the country's low corporate tax rates and, therefore, have sizeable overseas profits. Many choose to redeem their offshore profits in US Treasury securities as a means of avoiding repatriation tax.
These investments have often put Ireland among the top five largest holders of US debt. However, after former President Trump enacted new tax reforms in 2017 which reduced the rates at which US companies are taxed on foreign profits, shares of US Treasury securities in Ireland quickly began to drop.
Jumping from number 12 in 2022 to the top five in 2023 is America's northern neighbour, Canada. In June 2022, it held little more than $206 billion (£161bn) worth of US Treasury securities. This figure rocketed to $336.1 billion (£263bn) by the end of last year.
Canadian investors have been busy pouring money into many foreign reserves. In December 2023 alone, it's estimated they spent CA$29.4 billion ($21.8bn/£17.1bn) on a variety of foreign securities.
Another country favoured by US companies with European subsidiaries for its tax benefits – especially asset managers – Luxembourg is in possession of $370.7 billion (£291bn) of US debt.
However, as with the Cayman Islands and Belgium, many of the US treasury securities purchased through Luxembourg are actually owned by foreign investors.
Coming in at number three, the UK's share of American national debt stands at $753.7 billion (£591bn). That's more than double what Luxembourg holds.
The City of London is one of the biggest hubs worldwide for the financial services industry. Some of the largest insurers and institutional investors are based in London, as well as asset managers, hedge funds, and other wealth managers. Post Brexit, the financial district is eager to make connections with the US, having lost access to the European market. The City of London Corporation, the city's governing body, even opened offices in New York and Washington DC in December 2023.
For more than a decade, China held the top spot as America's largest creditor. A decade ago it held as much as $1.32 trillion (£1tn) of US Treasuries. However, in recent years this figure has substantially dropped.
There are various reasons why China has downsized its holdings of American debt, from retaliating against US-imposed tariffs on Chinese goods to the country's poor economic growth and its own debt woes. Last summer, analysts suggested selling off shares of US Treasury securities could be a strategy to prop up China's weakened currency.
It's worth noting that it's difficult to know exactly how much the country owns, as many of these shares are held abroad via custodians.
Since 2019, Japan has owned more US debt than any other country in the world. When China started selling off its holdings, Japan had already been steadily adding to its share since October 2018. Combined, the two countries own a quarter of America's foreign-held debt, leaving both susceptible to risk – especially when disagreements among lawmakers raised the potential threat of the US defaulting on its debt in 2023.
Despite the risk, Japan's holdings of US debt increased from $1.08 trillion (£847bn) in December 2022 to $1.13 trillion (£886bn) a year later.