5 Countries that Give the Most Debt to the United States
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29 January 2024 18:20 WIB
TEMPO.CO, Jakarta - The amount of United States debt in 2021 reached around US$ 28 trillion. About a quarter of US debt is from intra-government debt, that is, what the US government owes to other federal agencies. The remainder is public debt which includes state securities.
According to Investopedia, Japan and China are the US's largest debt providers. Following are the complete data:
1. Japan
Japan is the largest holder of United States debt, with US$ 1.266 trillion of treasury holdings, namely debt securities or bonds as of April 2020. This is the highest level of debt held by Japan in several years, beating China as the second largest holder of US debt.
The increase in Japanese ownership is the largest since 2013. Low yields in Japan make US debt securities more attractive compared to those in the Sakura country.
2. China
China ranks second in holding US government debt securities by controlling US$ 1.07 trillion in April 2020. However, in the last two years China has cut its holdings of US debt securities and this is the lowest in the last two years. China currently holds 15.5 percent of US foreign debt.
3. England
Britain has increased its holdings in US debt over the past eight years. In April 2020, Britain controlled US$ 368 billion in US debt securities or 6 percent of total foreign debt.
4. Ireland
Ireland is the fourth largest holder of US debt securities, even though this country's economy is not as large as other European countries, such as Germany. However, many US multinational companies, such as Alphabet/Google, set up offices there, making it profitable from a tax perspective. Ireland holds US$ 300 billion in US debt securities, or around 4 percent of total foreign debt.2
5. Luxembourg
Luxembourg is the fifth largest holder of United States debt among foreign countries. US debt securities controlled by Luxembourg reached US$ 267.8 billion or the equivalent of 3.8 percent of total foreign ownership.
INVESTOPEDIA
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