How much of the US GDP is household debt?
2014-2023. In the third quarter of 2023, household debt in the United States amounted to over 75 percent of its GDP. It can be generally observed that U.S. households are more indebted by the end of the year than in any other quarter.
| 2023: | 120.56971 |
|---|---|
| 2022: | 119.78896 |
| 2021: | 120.30839 |
| 2020: | 126.16688 |
| 2019: | 105.33471 |
Total household debt rose by $212 billion to reach $17.5 trillion in the fourth quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit. Credit card balances increased by $50 billion to $1.13 trillion over the quarter, while mortgage balances rose by $112 billion to $12.25 trillion.
Mortgage loans as a share of gdp reached 15.3% in 2022 in the USA, according to the National Central Bank. This is 70.0% less than in the previous year. Historically, mortgage loans as a share of GDP in the USA reached an all time high of 73.4% in 2007 and an all time low of 15.3% in 2022.
The higher the debt-to-GDP ratio, the less likely the country will pay back its debt and the higher its risk of default, which could cause a financial panic in the domestic and international markets.
The major international owners of US debt include Japan ($1.1T), China, UK, Belgium, Switzerland, Cayman Islands and smaller amounts from the rest of the world. After the recent weak treasury auction, US government officials warned that they are seeing waning demand from international buyers.
| Country/territory | US foreign-owned debt (January 2023) |
|---|---|
| Japan | $1,104,400,000,000 |
| China | $859,400,000,000 |
| United Kingdom | $668,300,000,000 |
| Belgium | $331,100,000,000 |
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
At the end of September 2023, domestic creditors held 77 percent of the outstanding debt held by the public. Foreign creditors held the remaining 23 percent.
What percentage of America is debt-free? According to that same Experian study, less than 25% of American households are debt-free. This figure may be small for a variety of reasons, particularly because of the high number of home mortgages and auto loans many Americans have.
What percentage of GDP is investment in the US?
United States Investment: % of GDP
United States Investment accounted for 20.7 % of its Nominal GDP in Mar 2023, compared with a ratio of 21.3 % in the previous quarter. US investment share of Nominal GDP data is updated quarterly, available from Mar 1947 to Mar 2023, with an average ratio of 22.3 %.
GDP takes into account consumption, investment, and net exports. While GDP also considers government spending, it does not include transfers such as Social Security payments.
| Total Average Consumer Debt by State | ||
|---|---|---|
| State | Average FICO® Score, 2023 | Average Debt, 2023 |
| California | 722 | $148,428 |
| Colorado | 731 | $154,481 |
| Connecticut | 726 | $110,034 |
- Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP. ...
- United States. ...
- China. ...
- Russia.
U.S. Household Debt Is at an All-Time High
The total household debt of $17.3 trillion entering 2024 is a new high for the U.S. The largest increase in any category was credit card debt, which swelled by 16.6% between Q3 2022 and Q3 2023, the most recent term for which federal data was available.
Debt-to-GDP measures the financial leverage of an economy. One of the Euro convergence criteria was that government debt-to-GDP should be below 60%.
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt. Japan surpassed China as the top holder in 2019 as China shed over $250 billion, or 30% of its holdings in four years.
If China (or any other nation that has a trade surplus with the U.S.) stops buying U.S. Treasuries or even starts dumping its U.S. forex reserves, its trade surplus would become a trade deficit—something which no export-oriented economy would want, as they would be worse off as a result.
China owes the United States $1.3 trillion, which is the most debt out of all the countries that are its debtors. Japan was the primary debt holder until 2008, but now comes in second place, with $1.2 trillion. Other countries with outstanding U.S. debt include Russia, India and South Korea.
How can the US get out of debt?
Of course, just as with an individual or family, cutting spending and increasing revenue are smart first steps. Beyond that, the government considers things like new taxes, a higher retirement age, removing loopholes from the tax code, and more to reduce annual deficits and the national debt.
Debt as a share of GDP has risen to about the same level as in the United States, while in dollar terms China's total debt ($47.5 trillion) is still markedly below that of the United States (close to $70 trillion). As for non-financial corporate debt, China's 28 percent share is the largest in the world.
Key Findings. 48.6% of Americans consider themselves to be “broke,” and 66.2% feel they are “living paycheck to paycheck.” There is a gender gap in the results: Females are more likely to consider themselves “broke” at 55.8%, compared to males at 41.1%.
A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
Men have 2% more credit card debt than women. Men have 20% more personal loan debt than women. Men have 16.3% more auto loan debt than women. Men have 9.7% more mortgage debt than women.
