TOP 10 Countries by Budget Deficit as % of GDP (2025)
This ranking uses the IMF’s definition of general government net lending (+) / net borrowing (–) as a share of GDP. Negative values mean a fiscal deficit (the public sector borrows); positive values mean a surplus.
A deficit of –7% of GDP means the government’s net borrowing in that year is roughly seven percent of the economy’s total output. Many fiscal frameworks treat ~–3% as a “moderate” deficit benchmark, but sustainable levels depend on growth, debt costs, and institutional capacity.
Table 1 — Countries with the largest budget deficits, 2025 (% of GDP)
| Rank | Country | Budget balance 2025 (% of GDP) |
|---|---|---|
| 1 | Timor-Leste | -50.4 |
| 2 | Ukraine | -21.3 |
| 3 | Kiribati | -15.1 |
| 4 | Bolivia | -13.1 |
| 5 | Egypt | -12.4 |
| 6 | Saint Kitts and Nevis | -12.2 |
| 7 | Algeria | -11.5 |
| 8 | Brunei Darussalam | -11.1 |
| 9 | Bahrain | -10.7 |
| 10 | Malawi | -10.6 |
From pre-COVID baseline to pandemic shock to 2025
The table below compares the same Top 10 countries’ fiscal balances in 2019 (pre-COVID), 2020 (pandemic peak for many discretionary measures), and 2025 (latest IMF forecast). In general, deficits widened sharply in 2020 and then narrowed by 2025 — but the size and speed of consolidation differs a lot across countries.
Important nuance: very small economies can show extremely large deficit-to-GDP ratios because a single investment program, revenue swing, or temporary external grant can move the balance by double-digit percentage points.
Table 2 — General government net lending/borrowing (% of GDP), 2019 vs 2020 vs 2025
| Country | 2019 | 2020 | 2025 |
|---|---|---|---|
| Timor-Leste | -25.4 | -18.9 | -50.4 |
| Ukraine | -2.1 | -5.9 | -21.3 |
| Kiribati | 10.8 | 3.6 | -15.1 |
| Bolivia | -7.2 | -12.7 | -13.1 |
| Egypt | -7.6 | -7.5 | -12.4 |
| Saint Kitts and Nevis | -0.7 | -3.1 | -12.2 |
| Algeria | -8.5 | -10.5 | -11.5 |
| Brunei Darussalam | -3.7 | -15.8 | -11.1 |
| Bahrain | -8.6 | -17.3 | -10.7 |
| Malawi | -4.5 | -8.0 | -10.6 |
Interpreting “improvement”: moving from –12% to –6% is an improvement (a smaller deficit), even though the value is still negative.
| Economy | 2025 (% of GDP) |
|---|---|
| United States | -7.4 |
| China | -8.6 |
| Japan | -3.3 |
| Germany | -1.8 |
| World | -5.2 |
These paths are based on the same IMF WEO indicator (net lending/borrowing, % of GDP). The 2020 dip is visible in most economies, followed by partial normalization.
Methodology (how the ranking is built)
We rank countries by the most negative value of the IMF WEO indicator General government net lending (+) / net borrowing (–), % of GDP for the year 2025. This is a general government concept (central + local + social security funds), which is more comparable internationally than a “central government” cash balance.
- Dataset: IMF DataMapper — World Economic Outlook (October 2025 edition).
- Indicator code: GGXCNL_NGDP.
- Unit: percent of GDP.
- Sign convention: negative = deficit (net borrowing); positive = surplus (net lending).
- Rounding: values shown to one decimal.
Key insights from the 2025 Top 10
The 2025 list is dominated by a mix of (a) countries facing very large fiscal pressures and (b) small economies where the ratio can swing dramatically from year to year.
- In this dataset, the largest 2025 deficit is Timor-Leste at -50.4% of GDP, far below the world aggregate balance of -5.2%.
- All Top 10 countries in 2025 are below –7% of GDP, which typically indicates sustained borrowing pressure rather than a small, cyclical gap.
- Looking at 2019 → 2020 → 2025, some economies show partial post-pandemic consolidation, while others remain structurally weak in 2025.
- For very small economies, treat the ranking as a “stress signal”, not a like-for-like comparison with large diversified economies.
Countries in the 2025 Top 10 (most negative balances):
- Timor-Leste (-50.4% of GDP)
- Ukraine (-21.3% of GDP)
- Kiribati (-15.1% of GDP)
- Bolivia (-13.1% of GDP)
- Egypt (-12.4% of GDP)
- Saint Kitts and Nevis (-12.2% of GDP)
- Algeria (-11.5% of GDP)
- Brunei Darussalam (-11.1% of GDP)
- Bahrain (-10.7% of GDP)
- Malawi (-10.6% of GDP)
What this means for readers
Deficit-to-GDP is a fast “temperature check” for public finances. It becomes more informative when combined with (1) public debt level, (2) interest-to-revenue burden, (3) economic growth, and (4) the nature of financing (domestic vs external, local vs foreign currency).
A single year with a large deficit is not automatically a crisis. What matters is whether deficits persist and whether the government can finance them at sustainable rates without crowding out private credit or forcing inflationary finance.
FAQ
Is this the same as “central government deficit”?
Why can small countries have extremely large deficit ratios?
Are the 2025 numbers actual or forecasts?
How do I reproduce this ranking?
Sources
Note: cross-country comparability can be affected by fiscal year definitions, accounting standards (cash vs accrual), coverage differences, and off-budget entities. Use the sources above for indicator definitions and the latest revisions.
