The average debt ratio in Germany, Italy, Japan, and numerous developing economies typically exceeds 50 percent. High reliance on debt financing can arise if a country lacks a well-developed stock market or other systems for obtaining capital from equity sources.

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Many countries, including developed ones like Germany, Italy, and Japan, as well as numerous developing economies, often have high debt ratios due to a reliance on debt financing. This can be attributed to the lack of a well-developed stock market or alternative equity financing options, leading to a preference for debt as a source of capital.

The Average Debt Ratio in Germany, Italy, Japan, and Numerous