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20 Countries With the Least Amount of Debt


In today's global economy, countries often find themselves burdened with significant amounts of national debt. However, there are some nations that have managed to keep their debt levels relatively low. This article will explore 20 countries with the least amount of national debt in relation to their Gross Domestic Product (GDP).

Low levels of national debt can be attributed to various factors such as effective fiscal management, stable economic growth, and prudent government policies. These countries are often lauded for their financial responsibility and serve as a model for other nations looking to reduce their own debt levels.

From developed nations to emerging economies, this list of countries will highlight their successes in minimizing national debt and maintaining economic stability. Understanding these debt levels in relation to their GDP is essential, as it provides a more accurate picture of a country's overall fiscal health.

Top 5 Countries with the Least Debt


Brunei, a small and wealthy country in Southeast Asia, boasts one of the lowest national debts relative to its GDP. Its oil and gas industry has been the main contributor to its economic stability.

Hong Kong

In addition to being a global financial hub, Hong Kong has managed to maintain one of the lowest debt levels in the world. The region's adherence to strict financial discipline and effective monetary policies has helped keep its debt low.


Estonia ranks high among countries with little national debt. The small Baltic nation has fostered a thriving tech industry and has implemented strict fiscal policies to maintain a balanced budget, contributing to its low debt-to-GDP ratio.

United Arab Emirates

The oil-rich United Arab Emirates (UAE) is another country with a low level of debt. Its substantial oil reserves and diversified economy have allowed the UAE to manage their finances well and maintain a low debt-to-GDP ratio.


Algeria, a country located in North Africa, has managed to keep its national debt low mainly due to its vast reserves of natural resources, particularly hydrocarbons. Prudent economic management and policies have also played a part in maintaining Algeria's low debt-to-GDP ratio.

Factors Contributing to Low Debt

Various factors contribute to a country having low debt levels. These factors can include the abundance of natural resources, economic growth, effective financial controls, and balanced budget policies. In this section, we will explore how each of these factors can play a role in maintaining a country's low debt status.

Natural Resources

Some countries have large reserves of valuable natural resources, such as oil, gas, and minerals. The presence of these resources can significantly boost a country's economy and provide a constant source of revenue. For example, a country with a large oil reserve can export it and generate income that can be used to fund government spending, reducing the need for borrowing. With fewer loans and external financial assistance, a country is able to maintain low debt levels.

Economic Growth

Economic growth plays an essential role in keeping a country's debt levels low. A growing economy creates jobs, increases consumer spending, and generates tax revenue for the government. When a government has sufficient revenue, it can fund its programs and policies without having to borrow money. This, in turn, reduces the necessity for taking on debt and helps to maintain low debt levels.

Financial Controls

Effective financial controls can also contribute to low debt levels. Strong financial institutions and regulatory frameworks ensure that government spending is managed responsibly and transparently. This can help prevent excessive borrowing and ensure that debt levels are kept in check. Additionally, prudent financial management practices can help a government identify and reduce wasteful spending, further reducing the need for debt financing.

Balanced Budget Policies

Lastly, balanced budget policies can play a significant role in maintaining low debt levels. Adhering to these policies, governments aim to match their spending with the revenue they generate. This approach minimizes the need for borrowing and helps to keep national debt levels low. Countries that prioritize balancing their budgets tend to have fiscal discipline and are better equipped to manage and maintain low debt levels.

Debt-to-GDP Ratio as an Indicator

The debt-to-GDP ratio is a crucial financial indicator that helps in understanding the economic health of a country, by comparing its government debt to its gross domestic product (GDP). This ratio serves as a useful tool for comparing a country's ability to repay its debts and manage its economic growth, while also highlighting its susceptibility to economic crises.

When assessing the financial stability of a nation, a lower debt-to-GDP ratio is generally preferred, as it implies that the government has a stronger capacity to pay off its debt with the wealth generated by its economy. High debt-to-GDP ratios, on the other hand, indicate a higher risk of default and can hamper a country's economic growth, as well as its ability to respond to financial crises.

However, it's essential to recognize that the debt-to-GDP ratio is just one of the many economic indicators, and its interpretation might vary depending on the context. For instance, developed countries often maintain higher debt-to-GDP ratios than developing or least developed countries, yet they may still be considered financially secure due to other factors such as strong credit ratings, stable currencies, and diversified economies.

In the context of the 20 countries with the least amount of debt, analyzing their debt-to-GDP ratios can provide valuable insights into their respective economic stability and overall financial management. Paying attention to other economic indicators, such as inflation rates, unemployment rates, and the size of the informal economy, can further enrich our understanding of their debt profiles and financial health.

Comparison to Countries with High Debt

In contrast to the 20 countries with the least amount of debt, several countries have much higher levels of debt, such as the United States, France, China, and Brazil. It is essential to understand the differences between these countries and the ones with lower debt levels to appreciate the factors contributing to their economic situations.

The United States, for example, has a significant amount of debt, with its economy being one of the largest in the world. While its debt-to-GDP ratio is not as high as some other countries, the sheer size of its debt has raised concerns about its sustainability. Factors such as increasing healthcare costs, an aging population, and large budget deficits contribute to this growing debt.

France also has a high level of debt relative to its GDP. This is due to factors such as high levels of public spending, social welfare programs, and a slow economic growth rate. Despite attempts to implement reforms and austerity measures, the country's debt continues to be a challenge for policymakers.

At the same time, China's debt has been growing rapidly in recent years. While the country has experienced remarkable economic growth, it has also accumulated a large amount of debt, particularly in the corporate and local government sectors. China's debt-to-GDP ratio has been increasing, raising concerns about its ability to manage its debt levels in the long term.

Lastly, Brazil has been grappling with high levels of public debt as well. The country has faced economic crises, high inflation rates, and political instability, making it challenging to control its debt levels. As a result, Brazil's debt-to-GDP ratio has risen significantly and remains a key issue for the country's economic future.

In conclusion, countries with high debt levels face various challenges and differ significantly from those with the least amount of debt. The reasons behind these situations are complex and multifaceted, encompassing factors such as economic growth, public spending, and political stability.

Sovereign Wealth Funds & Investment Management

Sovereign wealth funds (SWFs) are state-owned investment funds that manage the surplus reserves of a country, investing in a variety of assets, such as stocks, bonds, real estate, and alternative investments like private equity funds or hedge funds[source]. A country's ability to manage its debt is significantly influenced by the performance and size of its SWF, with some nations benefiting from substantial resources.

For example, Saudi Arabia, home to one of the largest SWFs globally, utilizes its vast oil reserves to bolster its economy and strengthen its sovereign wealth fund. Kuwait, another significant player in the sovereign wealth fund space, created the Kuwait Investment Authority in 1953, leveraging its oil revenues to manage the country's wealth and contribute to the nation's overall economic stability.

However, not all countries with low debt and strong SWFs are entirely dependent on natural resources. Botswana, for instance, owes much of its economic stability to its successful management of diamond revenues, which are invested into various assets through its SWF, the Pula Fund.

Similarly, Russia operates the Russian National Wealth Fund, which plays a vital role in managing the country's surplus reserves, diversifying its investments, and minimizing the risks associated with fluctuations in global commodity prices.

These examples demonstrate how countries like Saudi Arabia, Kuwait, Botswana, and Russia can effectively manage their debt and bolster their economies through the strategic use and management of sovereign wealth funds, whether generated through oil reserves or other valuable natural resources.

Tax and Revenue Systems

When examining countries with the least amount of debt, it is essential to understand the various tax and revenue systems that contribute to their stable economic standing. In this section, we will cover Income Tax Systems, Natural Resource Taxes, and Government Regulations, exploring how these factors play a significant role in ensuring low national debt levels.

Income Tax Systems

Income tax systems differ across countries, with some opting for progressive taxation, where tax rates increase with income levels, while others implement a flat-rate income tax, applying the same rate to all taxpayers regardless of income. A favorable tax environment may encourage economic growth, job creation, and a stable fiscal situation. For example, countries such as Turkey have introduced corporate tax changes, ensuring a competitive business environment and contributing to their low debt levels.

Natural Resource Taxes

Revenues generated from natural resources, such as oil and gas, play a crucial role in the economies of some countries with low national debt. For instance, Saudi Arabia maintains low debt-to-GDP ratios due to its high export rates of petroleum and petroleum goods. Additionally, oil and natural gas have been the backbone of the economy of countries like Kuwait, contributing to 30% of its GDP, 60% of budget revenues, and almost 95% of its export earnings, consequently showing its control over national debt.

Government Regulations

Government regulations play an essential role in maintaining low levels of national debt. Effective fiscal policies, such as responsible government spending, prudent use of national resources, and stringent economic measures, can positively influence a country's economic situation. Strict regulations on borrowing and a balanced budget can contribute to a stable fiscal environment, significantly impacting the nation's debt-to-GDP ratio. By monitoring these policies and ensuring their timely implementation, governments can maintain low national debt levels.

Impact on Social Services and Welfare State

Low levels of national debt can have significant implications for a country's social services and welfare state. As governments face less pressure from debt repayments, they may be able to allocate more resources to key areas such as healthcare, education, poverty alleviation, and subsidies and support.


Countries with low debt often have greater capacity to invest in healthcare and medical services. This can result in better access to quality healthcare for citizens, as well as improved overall health outcomes.


Low-debt nations may be able to prioritize educational spending, resulting in better quality education systems and increased access to education for all citizens. This not only improves individual outcomes but can also contribute greatly to the overall development and prosperity of a country.

Poverty Alleviation

With fewer financial constraints from debt, such countries can focus on poverty alleviation programs and social safety nets. This often leads to reduced income inequality, a stronger middle class, and overall improvements in the living conditions of citizens.

Subsidies and Support

Low levels of national debt may allow governments to provide various forms of subsidies and support to industries, businesses, and individuals. This not only helps to foster economic growth, but can also create employment opportunities and contribute to exports and overall economic strength.

It is important to note, however, that simply having low levels of debt does not automatically translate to strong social services and welfare provisions. Factors such as political will, social priorities, and the efficiency and effectiveness of government spending also play crucial roles.

External Debt vs Public Debt

When discussing the debt levels of countries, it is important to differentiate between external debt and public debt. While they may appear similar, there are key differences between these two concepts that can impact a country's overall financial situation.

External debt refers to the total debt obligations owed by a country to foreign creditors. This includes debt owed by both the public and private sectors to outside entities, such as international banks and other countries. External debt can arise from various sources, including loans, trade financing, and foreign direct investments. A country with a high external debt may face challenges in servicing its debt obligations, especially when its currency's value decreases relative to foreign currencies.

Public debt, on the other hand, represents the total debt obligations of a country's government. It includes both domestic and external debt held by the public sector, such as bonds and loans. Public debt can be used to fund government initiatives, infrastructure projects, and social welfare programs. A high public debt can lead to concerns about a country's fiscal sustainability and potential for default.

In the context of the United States, the nation's public debt has been increasing over the years, primarily due to rising government expenditures and various economic stimulus measures. According to the International Monetary Fund (IMF), global public debt levels have also been increasing, with numbers reaching close to 100 percent of GDP.

Despite their differences, both external and public debt are critical factors to consider when analyzing a country's financial health. Balancing the two types of debt and monitoring their trajectories can help inform policy decisions and contribute to greater economic stability.

Economic Outlook and Future Considerations

Low-debt countries such as Kazakhstan, Nigeria, and others have unique economic considerations to keep in mind. While these nations maintain lower levels of national debt, they must address future challenges to maintain economic stability and sustainable growth.

In Kazakhstan, the economy is largely state-controlled and heavily reliant on oil and natural gas, which account for approximately 30% of its GDP, 60% of budget revenues, and almost 95% of export earnings. To sustain economic growth, diversification is crucial for Kazakhstan. Reducing dependency on finite and volatile resources should be a primary concern for the nation's future economic outlook.

Nigeria, on the other hand, has been struggling with higher debt levels relative to some other low-debt countries. Its economic situation is also largely dependent on oil, accounting for a significant portion of its GDP and export earnings. In order to maintain a low debt profile, Nigeria needs to address factors such as weak revenue mobilization, limited fiscal space, and high debt servicing costs.

Considering the global landscape, the World Bank projects that growth is expected to decelerate markedly in 2022 due to COVID-19 flare-ups, diminished fiscal support, and lingering supply bottlenecks. Low-debt countries should monitor global economic trends and implications for their economies closely, addressing potential risks and adapting to changing circumstances.

Ultimately, countries with the least amount of debt should focus on their individual economic situations and diversification initiatives to maintain low debt levels while fostering long-term growth. International cooperation and leveraging strengths in various sectors of their economies can be useful in achieving these goals.

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Garrett Parker

Written by Garrett Parker

Garrett by trade is a personal finance freelance writer and journalist. With over 10 years experience he's covered businesses, CEOs, and investments. However he does like to take on other topics involving some of his personal interests like automobiles, future technologies, and anything else that could change the world.

Read more posts by Garrett Parker

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