Which country is the lowest in debt?

The Country with the Lowest Debt in the World

When it comes to national debt, size doesn’t always matter—but context certainly does. In 2026, Liechtenstein took the top spot as the country with the lowest government debt relative to its economy, boasting a mere 0.52 percent debt-to-GDP ratio. That’s almost unheard of in modern global finance, where most nations carry debt loads that stretch well into double or even triple digits as a share of GDP.

This tiny Alpine nation, nestled between Switzerland and Austria, isn’t just small in size—it’s strategic in policy. With a population under 40,000 and a highly specialized economy driven by finance, manufacturing, and low-tax incentives, Liechtenstein operates more like a precision-engineered economic unit than a traditional state. Its government consistently runs budget surpluses, thanks to a business-friendly climate and minimal public spending needs.

Just behind it, Brunei ranked second with a debt-to-GDP ratio of 1.48 percent. The Southeast Asian sultanate benefits from vast oil and gas reserves, which fund nearly all government expenditures without the need for heavy borrowing. However, its reliance on fossil fuels makes long-term stability more vulnerable to market shifts—unlike Liechtenstein’s diversified and resilient economic model.

What sets these countries apart isn’t just low debt, but a combination of disciplined fiscal management, unique geopolitical advantages, and economic structures that minimize reliance on external financing. While most of the world grapples with rising deficits, these nations prove that with the right mix of policy and circumstance, operating with near-zero debt is not only possible but sustainable.

In a global landscape where debt is often seen as inevitable, Liechtenstein stands as a quiet outlier—small in size, but towering in fiscal discipline.