Where is the global debt crisis more severe and why?

According to a 2019 IMF report, it identifies around 32 countries sitting on a sovereign debt
timebomb that could be triggered any time by the smallest event and the COVID-19 adds no less
fuel to it. Global debt has increased by 9%age points from 322% to 331% from 2019 to 2020.

It is majorly divided among 3 segments comprising of Government/ Public debt, Corporate Debt,
Household Debt and different economies have different proportions of debt distribution among
the three. The critical debt list is topped by some of the mature economies of the world like US,
and Japan whilst China being an emerging market holds a huge chunk too.

- The debt levels in US are raising owing to the 2017 Tax Cutting and Jobs Act. The
borrowing interest rates are extremely low and the country has violated its debt ceiling
around 14 times since 2001. Corporate debt is growing at a much higher rate too and
warnings of a debt crisis looming over US have been issued by economists.

- Japan faced a stock market crash where the government bailed out banks and insurance
companies and provided them with low-interest credit. Actions to reboot the struggling
economy skyrocketed Japan’s debt levels.

- Lower tax revenues in UK forced the government to borrow but the major reason for high
debt is on account of lending from the private sector which is four times more than the
government lending.

- China, an emerging economy has a debt of 310% of its GDP. Its borrowing rates have
risen at an unsustainable pace which could lead to a number of financial problems.
Corporate and household debt has also been rising at an expendable rate. Although since
most of China’s debt is state owned, it isn’t much concerning at the global scale.