Markets

Insider Trading

Hedge Funds

Retirement

Opinion

25 Countries with the Lowest Debt to GDP Ratios

In this article, we take a look at the 25 countries with the lowest debt to GDP ratios. You can skip our detailed analysis and go directly to 10 Countries with the Lowest Debt to GDP Ratios

Debt Ratio Swings

Global debt is surging. The year 2020 saw these debts rising by 30 percentage points to 263% of GDP, marking the single most significant increase since the 1970s. World Bank notes that this surge is primarily due to rising interest rates, high inflation, and slow economic growth. Advanced economies saw debt increase by 300% of GDP while Emerging markets and Developing Economies (EMDA) saw a rise of 200% in GDP. Moreover, research on developing economies showed that debts have been rising for them, too, mainly due to sustained primary deficits.

The following year has witnessed global debt sustained at above pre-pandemic levels. However, IMF reports total public and private debt to have fallen by 10 percentage points to 247% of GDP. Debt ratio swings can largely be attributed to the economic rebound from the pandemic as well as the inflation that followed. The falls in public and private debt have been mainly experienced in advanced economies, with a fall of 5% of GDP in 2021. Emerging markets, except for China, also marked a decline. However, low-income developing countries continue to experience high debt levels primarily due to higher private debts.

In fact, almost 60% of low-income countries have already gone into or are at a high risk of debt distress. December 2021 also saw IMF’s Catastrophe Containment and Relief Trust (CCRT) lending coming to an end. Coupled with rising interest rates, borrowing costs have been increasing significantly, pressing national budgets and making it increasingly difficult for countries to service their debts.

Debt Carrying Capacities

Due to strong growth and high inflation, debt-to-GDP ratios have steadily declined for most advanced and EMDI economies. When these two factors come into play, they tend to improve nominal incomes that are subject to taxation. Therefore, governments with higher inflation pushed with rapid growth are at a higher chance of raising revenues and meeting obligations than those without. These economies are said to have larger debt-carrying capacities.

As a result, advanced economies generally have the capacity to sustain higher ratios of debt to GDP. Developing countries lack such capacities owing to credit rating downgrades that such high ratios bring them. Coupled with capital inflow withdrawals, local currency values plummet and worsen the overall economic situation of such economies.

Considering this backdrop, it must be noted that 2023 will be characterized by slow growth and tightening financial conditions. This situation is rather risky as servicing debt is becoming costlier for countries. As of 2022, 23 EMDEs were at risk of or already going into debt distress. Moreover, global growth is likely to plunge this year at 1.6%. As a result, governments would need more than just economic growth to lower their debt levels.

Many countries have been keeping their debt-to-GDP ratios low owing to their robust fiscal policies, strong economic growth, and even resilient risk management. Even though outliers such as Palestine, Congo, and even Afghanistan exist who depend on grants and loan proceeds or have both their GDP and debt levels low, other countries are proving they have resilient economies otherwise.

Methodology

To compile the list of 25 countries with the lowest debt-to-GDP ratio, we used statistics from Trading Economics. Countries were then listed in descending order from highest to lowest debt to GDP ratio.

Pixabay/Public Domain

25. Ethiopia

Debt to GDP ratio: 31.4

Ethiopia’s economy is on the verge of collapse with dire need of debt restructuring and loans from IMF. World Bank notes GDP worth US $111.27 billion as of 2021. Moreover, national debt stood at US $43.04 as of 2021.

24. Denmark

Debt to GDP ratio: 30.1

Denmark’s state debt remains at its lowest levels despite the pandemic, Central Bank notes. Its debt has been shrinking due to a budget surplus in 2022. This surplus was then used to pay off a large portion of its borrowing. Its debt levels as of 2022 stood at $120.1 billion, while its GDP amounted to $390.68 billion.

23. Saudi Arabia

Debt to GDP ratio: 30

Saudi Arab has successfully pursued a sustainable and well-structured debt strategy coupled with robust risk management over the years. The Kingdom has been heavily reliant on oil but has also been striving for economic diversification. Its debt strategy includes diversifying its investors, implementing higher risk management standards, as well as improving risk-based prices of issuances.

22. Guatemala

Debt to GDP ratio: 30

Guatemala’s public debt, as of 2021, was $26,458 million. The country has been enjoying stable growth over the years, with an estimated 4% growth in the economy in 2022. The growth has largely been driven by investment as well as private and public consumption. Despite the promising outlook, the country faces challenges from poverty and inequality, lack of jobs, and frequent natural disasters.

21. Equatorial Guinea

Debt to GDP ratio: 27.1

Equatorial Guinea, a Central African country, is an upper-middle country whose debt-to-GDP ratio stands at 27.1%. The country was in severe debt and consecutively faced recession for 7 years before experiencing a rebound in the year 2022. Owing to strong hydrocarbon revenues and favorable oil prices, the country’s overall economy has improved.

20. Botswana

Debt to GDP ratio: 26.1

Botswana is a county in Southern Africa with a debt-to-GDP ratio of 26.1%. The country has been experiencing robust growth in the past few years, primarily due to the diamond mining, and water and electricity sectors. In 2022, the economy expanded by 5.8%. Public debt, as of the year 2021, stood at 19% of GDP only as the country has been relying more on its reserves over the years.

19. Luxembourg

Debt to GDP ratio: 24.5

The European country of Luxembourg has a debt-to-GDP ratio of 24.6%. Despite being small, the country has a high income per capita and strong public and external balance sheets. It maintains a strong fiscal position while its financial assets exceed debt stock by a huge margin. Its GDP, as of the year 2021, was $85.51 billion. Projections for the year 2023 remain comparatively weaker due to tighter financial conditions, weak investment, and geopolitical uncertainty.

18. Kazakhstan

Debt to GDP ratio: 24.4

Kazakhstan recorded GDP growth of 3.2%, amounting to $224 billion. GDP growth in the year 2023-24 is forecasted to be led by the hydrocarbon sector stemming from a rise in oil production. External debt for the country as of January 2023 stood at $160.5 billion. The country has a low debt to GDP ratio due to its debt limit restriction set at 53.5% of gross domestic product.

17. Haiti

Debt to GDP ratio: 23.1

Haiti’s debt-to-GDP ratio stands at 23%. It is one of the poorest countries in the Western Hemisphere, with half of the population living below the poverty line. The country is engulfed in debt, foreign intervention, natural disasters, and political instability, being effectively collapsed. GDP in the country stood at $22 billion in 2022, while foreign debt levels stood at $1.25 billion, as per IMF.

16. Australia

Debt to GDP ratio: 22.3

Australia enjoys a low debt-to-GDP ratio owing to its prudent fiscal management policies and generally strong economic growth. However, IMF forecasts GDP growth to be slow in 2023 at 1.6%. The slow growth is largely due to higher interest rates that have been promulgated to battle inflation.

15. Palestine

Debt to GDP ratio: 21.3

Palestine’s public debt has been increasing primarily due to the Israeli-Palestinian conflict restricting investment, movement, and overall trade. This has hindered its economic development. Moreover, the country relies heavily on foreign aid for its public expenditures. Public debt, as of 2022, stood at $11,231 million, with GDP improving the same year largely from recoveries made in private sector consumption.

14. Kosovo

Debt to GDP ratio: 20.74

Despite the shocks coming from the pandemic, unfavorable weather conditions, Russia’s invasion of Ukraine, high energy and food prices, and overall uncertainties in the market, Kosovo is one of the countries whose GPD has surpassed pre-pandemic levels. Exports and private consumption are driving GDP growth in 2023. Even though the public debt is low, the economy is facing large trade deficits, and overall government expenditure is unfavorable.

13. Bulgaria

Debt to GDP ratio: 20.5

Bulgaria has one of the lowest levels of debt in the European Union. CEIC said the national government debt reached $21.1 billion in March 2023. Meanwhile, growth in GDP, as of 2023, is expected to slow down to 1.7% before a rebound the following year. Unlocks in EU funds will help drive the rebound.

12. Bosnia and Herzegovina

Debt to GDP ratio: 19.6

Bosnia and Herzegovina, a country in Southeastern Europe, experienced some contractions in its economy during the pandemic. However, it resumed growth in 2021 by 7.5%. Post 2021, strong growth is still being experienced due to manufacturing and demand-driven service sectors. Meanwhile, debt for the country reached $5 billion in 2022, while GDP stood at $53 billion.

11. Eswatini (Swaziland)

Debt to GDP ratio: 19.44

Swaziland, now known as Eswatini, has had debt levels equating to 38.4% of GDP in 2021. GDP growth has been slow at approximately 0.4% in 2022. The primary reasons for slow growth are weak agriculture sector performance, domestic demand pressures, and social and political uncertainty. The country also largely depends on South Africa for its exports and imports.

Click to continue reading and see the 10 Countries with the Lowest Debt to GDP Ratio.

Suggested Articles:

Disclosure: none. 25 Countries with the Lowest Debt to GDP Ratios is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…