External debt acts as an economic burden and it can ultimately shape national fiscal policies and defense strategies, especially for countries with sizable military expenditures. Countries like the United States owe trillions in debt, and this has largely influenced geopolitical relations and even military operations.
Even further, the influence of external debt extends beyond immediate financial concerns to diplomatic relationships and strategic alliances. Nations that are heavily indebted typically find themselves under greater scrutiny, which, again, can influence their foreign policies and military engagements.
The relationship between debt, economic policy, and military strategy ultimately weaves a complex web. Military budgets can marshal sizable forces but if these are cut for debt obligations then a country’s ability to project power could diminish as well. Here, 24/7 Wall St. is taking a closer look at the world military powers with the largest external debt.
To determine the countries with the most external debt in the world, 24/7 Wall St. reviewed the 2025 Military Strength Ranking from Global Firepower, an annually updated defense-related statistics website with information on 145 countries. Global Firepower ranked 145 countries based on their PowerIndex, a composite of over 60 measures in categories such as military might, financials, logistical capability, and geography. The smaller the PowerIndex value the more powerful a nation’s theoretical conventional fighting capability is. We ranked these countries based on their external debt. We also included supplemental information regarding purchasing power parity, foreign exchange/gold reserves, defense budgets, a composition of military assets, as well as the overall military strength score.
Here is a look at the military powers with the most external debt in the world:
Why Are We Covering This?
Understanding global military dynamics is incredibly important due to the interconnected nature of international relations and conflicts. As long as civilization has existed, the world has witnessed shifting power balances and alliances which have ultimately shaped the current geopolitical landscape. While key players like the United States, China, and Russia are considered the strongest military powers in the world, there are a number of other nations with their own spheres of influence and strengths that impact global relations from a military perspective.
30. India
- External debt: $371,020,500,000
- Military defense budget: $75,000,000,000 – #4 out of 145
- Foreign exchange and gold reserves: $627,793,000,000
- Purchasing power parity: $13,104,000,000,000
- Total military aircraft: 2,229
- Total military vehicles: 148,594
- Total naval vessels: 293
- Military strength score and world rank: 0.1184 – #4 out of 145
To back up its finances, India has 5,137,550 total military personnel, which is composed of 1,455,550 active personnel, 1,155,000 reserves, and 2,527,000 paramilitary forces. India also has a total population of 1.409 billion.
29. Mexico
- External debt: $371,359,000,000
- Military defense budget: $7,600,000,000 – #39 out of 145
- Foreign exchange and gold reserves: $214,317,000,000
- Purchasing power parity: $2,873,000,000,000
- Total military aircraft: 433
- Total military vehicles: 19,658
- Total naval vessels: 167
- Military strength score and world rank: 0.5965 – #32 out of 145
To back up its finances, Mexico has 630,655 total military personnel, which is composed of 412,000 active personnel, 98,655 reserves, and 120,000 paramilitary forces. Mexico also has a total population of 130.74 million.
28. Poland
- External debt: $386,947,000,000
- Military defense budget: $48,700,000,000 – #12 out of 145
- Foreign exchange and gold reserves: $193,783,000,000
- Purchasing power parity: $1,616,000,000,000
- Total military aircraft: 479
- Total military vehicles: 23,138
- Total naval vessels: 62
- Military strength score and world rank: 0.3776 – #22 out of 145
To back up its finances, Poland has 602,100 total military personnel, which is composed of 202,100 active personnel, 350,000 reserves, and 50,000 paramilitary forces. Poland also has a total population of 38.75 million.
27. Portugal
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- External debt: $399,395,000,000
- Military defense budget: $4,627,000,000 – #52 out of 145
- Foreign exchange and gold reserves: $53,710,000,000
- Purchasing power parity: $529,901,000,000
- Total military aircraft: 115
- Total military vehicles: 10,828
- Total naval vessels: 194
- Military strength score and world rank: 0.6856 – #39 out of 145
To back up its finances, Portugal has 260,400 total military personnel, which is composed of 24,000 active personnel, 211,700 reserves, and 24,700 paramilitary forces. Portugal also has a total population of 10.64 million.
26. Brazil
- External debt: $432,224,000,000
- Military defense budget: $26,157,300,000 – #19 out of 145
- Foreign exchange and gold reserves: $355,021,000,000
- Purchasing power parity: $4,016,000,000,000
- Total military aircraft: 513
- Total military vehicles: 22,464
- Total naval vessels: 64
- Military strength score and world rank: 0.2415 – #11 out of 145
To back up its finances, Brazil has 900,000 total military personnel, which is composed of 360,000 active personnel, 340,000 reserves, and 200,000 paramilitary forces. Brazil also has a total population of 220.05 million.
25. Indonesia
- External debt: $440,000,000,000
- Military defense budget: $10,600,000,000 – #29 out of 145
- Foreign exchange and gold reserves: $146,359,000,000
- Purchasing power parity: $3,906,000,000,000
- Total military aircraft: 459
- Total military vehicles: 20,440
- Total naval vessels: 331
- Military strength score and world rank: 0.2557 – #13 out of 145
To back up its finances, Indonesia has 1,050,000 total military personnel, which is composed of 400,000 active personnel, 400,000 reserves, and 250,000 paramilitary forces. Indonesia also has a total population of 281.56 million.
24. South Korea
- External debt: $503,519,500,000
- Military defense budget: $46,300,000,000 – #14 out of 145
- Foreign exchange and gold reserves: $420,930,000,000
- Purchasing power parity: $2,615,000,000,000
- Total military aircraft: 1,592
- Total military vehicles: 58,880
- Total naval vessels: 227
- Military strength score and world rank: 0.1656 – #5 out of 145
To back up its finances, South Korea has 3,820,000 total military personnel, which is composed of 600,000 active personnel, 3,100,000 reserves, and 120,000 paramilitary forces. South Korea also has a total population of 52.08 million.
23. Greece
- External debt: $550,000,000,000
- Military defense budget: $6,500,000,000 – #44 out of 145
- Foreign exchange and gold reserves: $13,608,000,000
- Purchasing power parity: $375,780,000,000
- Total military aircraft: 558
- Total military vehicles: 61,888
- Total naval vessels: 192
- Military strength score and world rank: 0.5337 – #30 out of 145
To back up its finances, Greece has 419,050 total military personnel, which is composed of 142,700 active personnel, 221,350 reserves, and 55,000 paramilitary forces. Greece also has a total population of 10.46 million.
22. Denmark
- External debt: $555,500,000,000
- Military defense budget: $7,225,466,250 – #40 out of 145
- Foreign exchange and gold reserves: $109,371,000,000
- Purchasing power parity: $428,385,000,000
- Total military aircraft: 117
- Total military vehicles: 3,856
- Total naval vessels: 50
- Military strength score and world rank: 0.8109 – #45 out of 145
To back up its finances, Denmark has 83,000 total military personnel, which is composed of 20,000 active personnel, 12,000 reserves, and 51,000 paramilitary forces. Denmark also has a total population of 5.973 million.
21. Austria
- External debt: $630,000,000,000
- Military defense budget: $5,475,750,000 – #47 out of 145
- Foreign exchange and gold reserves: $31,212,000,000
- Purchasing power parity: $590,354,000,000
- Total military aircraft: 85
- Total military vehicles: 7,322
- Total naval vessels: 0
- Military strength score and world rank: 1.3704 – #68 out of 145
To back up its finances, Austria has 141,600 total military personnel, which is composed of 16,000 active personnel and 125,600 reserves. Austria also has a total population of 8.968 million.
20. Finland
- External debt: $660,000,000,000
- Military defense budget: $6,779,661,000 – #42 out of 145
- Foreign exchange and gold reserves: $16,929,000,000
- Purchasing power parity: $321,126,000,000
- Total military aircraft: 163
- Total military vehicles: 11,704
- Total naval vessels: 264
- Military strength score and world rank: 0.8437 – #48 out of 145
To back up its finances, Finland has 947,800 total military personnel, which is composed of 24,000 active personnel, 870,000 reserves, and 53,800 paramilitary forces. Finland also has a total population of 5.626 million.
19. Norway
- External debt: $716,144,000,000
- Military defense budget: $9,710,000,000 – #32 out of 145
- Foreign exchange and gold reserves: $80,459,000,000
- Purchasing power parity: $449,528,000,000
- Total military aircraft: 97
- Total military vehicles: 6,552
- Total naval vessels: 43
- Military strength score and world rank: 0.6811 – #38 out of 145
To back up its finances, Norway has 63,250 total military personnel, which is composed of 23,250 active personnel and 40,000 paramilitary forces. Norway also has a total population of 5.510 million.
18. Sweden
- External debt: $1,002,448,700,000
- Military defense budget: $13,000,000,000 – #28 out of 145
- Foreign exchange and gold reserves: $60,863,000,000
- Purchasing power parity: $676,353,000,000
- Total military aircraft: 169
- Total military vehicles: 6,795
- Total naval vessels: 308
- Military strength score and world rank: 0.4835 – #27 out of 145
To back up its finances, Sweden has 82,300 total military personnel, which is composed of 24,400 active personnel, 32,900 reserves, and 25,000 paramilitary forces. Sweden also has a total population of 10.59 million.
17. Panama
- External debt: $1,115,532,300,000
- Military defense budget: $917,202,000 – #90 out of 145
- Foreign exchange and gold reserves: $6,757,000,000
- Purchasing power parity: $159,867,000,000
- Total military aircraft: 38
- Total military vehicles: 262
- Total naval vessels: 30
- Military strength score and world rank: 3.6575 – #136 out of 145
To back up its finances, Panama has 80,000 total military personnel, which is composed of entirely of paramilitary forces. Panama also has a total population of 4.470 million.
16. China
- External debt: $1,218,458,500,000
- Military defense budget: $266,850,000,000 – #2 out of 145
- Foreign exchange and gold reserves: $3,450,000,000,000
- Purchasing power parity: $31,227,000,000,000
- Total military aircraft: 3,309
- Total military vehicles: 144,017
- Total naval vessels: 754
- Military strength score and world rank: 0.0788 – #3 out of 145
To back up its finances, China has 3,170,000 total military personnel, which is composed of 2,035,000 active personnel, 510,000 reserves, and 625,000 paramilitary forces. China also has a total population of 1.415 billion.
15. Belgium
- External debt: $1,449,264,300,000
- Military defense budget: $10,200,000,000 – #31 out of 145
- Foreign exchange and gold reserves: $40,813,000,000
- Purchasing power parity: $751,592,000,000
- Total military aircraft: 108
- Total military vehicles: 4,606
- Total naval vessels: 9
- Military strength score and world rank: 1.2564 – #62 out of 145
To back up its finances, Belgium has 31,400 total military personnel, which is composed of 25,000 active personnel and 6,400 reserves. Belgium also has a total population of 11.98 million.
14. Singapore
- External debt: $1,713,410,600,000
- Military defense budget: $15,000,000,000 – #26 out of 145
- Foreign exchange and gold reserves: $359,835,000,000
- Purchasing power parity: $754,758,000,000
- Total military aircraft: 230
- Total military vehicles: 8,998
- Total naval vessels: 50
- Military strength score and world rank: 0.5271 – #29 out of 145
To back up its finances, Singapore has 315,500 total military personnel, which is composed of 51,000 active personnel, 252,500 reserves, and 12,000 paramilitary forces. Singapore also has a total population of 6.028 million.
13. Switzerland
- External debt: $2,200,000,000,000
- Military defense budget: $25,039,000,000 – #20 out of 145
- Foreign exchange and gold reserves: $863,892,000,000
- Purchasing power parity: $733,779,000,000
- Total military aircraft: 146
- Total military vehicles: 6,996
- Total naval vessels: 0
- Military strength score and world rank: 0.7869 – #44 out of 145
To back up its finances, Switzerland has 156,299 total military personnel, which is composed of 101,584 active personnel, 49,715 reserves, and 5,000 paramilitary forces. Switzerland also has a total population of 8.861 million.
12. Canada
- External debt: $2,337,375,700,000
- Military defense budget: $41,000,000,000 – #15 out of 145
- Foreign exchange and gold reserves: $117,551,000,000
- Purchasing power parity: $2,238,000,000,000
- Total military aircraft: 351
- Total military vehicles: 21,704
- Total naval vessels: 73
- Military strength score and world rank: 0.5179 – #28 out of 145
To back up its finances, Canada has 100,500 total military personnel, which is composed of 68,000 active personnel, 27,000 reserves, and 5,500 paramilitary forces. Canada also has a total population of 38.79 million.
11. Spain
- External debt: $2,572,738,300,000
- Military defense budget: $23,397,000,000 – #22 out of 145
- Foreign exchange and gold reserves: $103,089,000,000
- Purchasing power parity: $2,242,000,000,000
- Total military aircraft: 461
- Total military vehicles: 17,626
- Total naval vessels: 152
- Military strength score and world rank: 0.3242 – #17 out of 145
To back up its finances, Spain has 226,902 total military personnel, which is composed of 133,282 active personnel, 15,150 reserves, and 78,470 paramilitary forces. Spain also has a total population of 47.28 million.
10. Italy
- External debt: $2,750,000,000,000
- Military defense budget: $30,890,000,000 – #16 out of 145
- Foreign exchange and gold reserves: $247,396,000,000
- Purchasing power parity: $3,097,000,000,000
- Total military aircraft: 729
- Total military vehicles: 73,480
- Total naval vessels: 196
- Military strength score and world rank: 0.2164 – #10 out of 145
To back up its finances, Italy has 289,000 total military personnel, which is composed of 165,500 active personnel, 18,500 reserves, and 105,000 paramilitary forces. Italy also has a total population of 60.96 million.
9. Ireland
- External debt: $3,300,000,000,000
- Military defense budget: $1,500,000,000 – #76 out of 145
- Foreign exchange and gold reserves: $12,905,000,000
- Purchasing power parity: $608,463,000,000
- Total military aircraft: 22
- Total military vehicles: 1,712
- Total naval vessels: 8
- Military strength score and world rank: 2.1103 – #97 out of 145
To back up its finances, Ireland has 9,465 total military personnel, which is composed of 7,765 active personnel and 1,700 reserves. Ireland also has a total population of 5.233 million.
8. Australia
- External debt: $3,427,504,300,000
- Military defense budget: $55,700,000,000 – #8 out of 145
- Foreign exchange and gold reserves: $61,703,000,000
- Purchasing power parity: $1,584,000,000,000
- Total military aircraft: 327
- Total military vehicles: 15,648
- Total naval vessels: 44
- Military strength score and world rank: 0.3298 – #18 out of 145
To back up its finances, Australia has 89,400 total military personnel, which is composed of 57,350 active personnel and 32,050 reserves. Australia also has a total population of 26.77 million.
7. Japan
- External debt: $4,679,698,100,000
- Military defense budget: $57,000,000,000 – #7 out of 145
- Foreign exchange and gold reserves: $1,295,000,000,000
- Purchasing power parity: $5,761,000,000,000
- Total military aircraft: 1,443
- Total military vehicles: 31,964
- Total naval vessels: 159
- Military strength score and world rank: 0.1839 – #7 out of 145
To back up its finances, Japan has 328,150 total military personnel, which is composed of 247,150 active personnel, 56,000 reserves, and 25,000 paramilitary forces. Japan also has a total population of 123.2 million.
6. Luxembourg
- External debt: $4,730,000,000,000
- Military defense budget: $726,092,925 – #98 out of 145
- Foreign exchange and gold reserves: $2,977,000,000
- Purchasing power parity: $88,533,000,000
- Total military aircraft: 1
- Total military vehicles: 182
- Total naval vessels: 0
- Military strength score and world rank: 2.6415 – #117 out of 145
To back up its finances, Luxembourg has 1,000 total military personnel, which is composed of 1,000 active personnel, and no reserves or paramilitary forces. Luxembourg also has a total population of 671,254.
5. Netherlands
- External debt: $4,779,954,300,000
- Military defense budget: $27,000,000,000 – #18 out of 145
- Foreign exchange and gold reserves: $69,830,000,000
- Purchasing power parity: $1,240,000,000,000
- Total military aircraft: 120
- Total military vehicles: 2,755
- Total naval vessels: 64
- Military strength score and world rank: 0.6412 – #36 out of 145
To back up its finances, the Netherlands has 53,145 total military personnel, which is composed of 41,380 active personnel, 6,765 reserves, and 5,000 paramilitary forces. Netherlands also has a total population of 17.77 million.
4. Germany
- External debt: $6,238,609,300,000
- Military defense budget: $50,000,000,000 – #11 out of 145
- Foreign exchange and gold reserves: $322,700,000,000
- Purchasing power parity: $5,230,000,000,000
- Total military aircraft: 584
- Total military vehicles: 83,260
- Total naval vessels: 61
- Military strength score and world rank: 0.2601 – #14 out of 145
To back up its finances, Germany has 215,600 total military personnel, which is composed of 181,600 active personnel and 34,000 reserves. Germany also has a total population of 84.12 million.
3. France
- External debt: $6,992,104,900,000
- Military defense budget: $55,000,000,000 – #9 out of 145
- Foreign exchange and gold reserves: $240,792,000,000
- Purchasing power parity: $3,764,000,000,000
- Total military aircraft: 976
- Total military vehicles: 110,932
- Total naval vessels: 129
- Military strength score and world rank: 0.1878 – #8 out of 145
To back up its finances, France has 376,000 total military personnel, which is composed of 200,000 active personnel, 26,000 reserves, and 150,000 paramilitary forces. France also has a total population of 68.37 million.
2. United Kingdom
- External debt: $9,593,749,000,000
- Military defense budget: $71,500,540,000 – #6 out of 145
- Foreign exchange and gold reserves: $177,915,000,000
- Purchasing power parity: $3,700,000,000,000
- Total military aircraft: 631
- Total military vehicles: 38,200
- Total naval vessels: 109
- Military strength score and world rank: 0.1785 – #6 out of 145
To back up its finances, the United Kingdom has 1,108,860 total military personnel, which is composed of 184,860 active personnel and 924,000 reserves. The United Kingdom also has a total population of 68.46 million.
1. United States
- External debt: $22,303,546,100,000
- Military defense budget: $895,000,000,000 – #1 out of 145
- Foreign exchange and gold reserves: $773,426,000,000
- Purchasing power parity: $24,662,000,000,000
- Total military aircraft: 13,043
- Total military vehicles: 391,963
- Total naval vessels: 440
- Military strength score and world rank: 0.0744 – #1 out of 145
To back up its finances, the United States has 2,127,500 total military personnel, which is composed of 1,328,000 active personnel and 799,500 reserves. The United States also has a total population of 341.96 million.
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