Australia is one of seven countries that Forbes magazine says is the "most likely to suffer a debt crisis" within the next three years.

China, whose economy has faltered in the past two years, comes No. 1 on the list of seven, but Australia is No. 2. Sweden, Hong Kong, South Korea, Canada and Norway complete the list of infamy. The article was written by Australian economist Steve Keen.

Consumer staples, as well as the banks, led the index down on Monday. Credit:Penny Stephens

Using data for both private and public debt compiled by Switzerland-based Bank of International Settlements, the magazine looks at the rate of growth of credit compared with gross domestic product, paying particular attention to when credit growth begins to fall.