Published on: 2026-07-22
Almost every sovereign state owes money. Liechtenstein, Brunei, Tuvalu and Turkmenistan enter 2026 with public debt between just 0.5% and 3.7% of GDP, compared with a global ratio near 94%. Yet the countries closest to zero often rely on oil, foreign grants or fiscal reporting that leaves parts of the public sector out of view.
Liechtenstein leads at 0.5% of GDP, followed by Brunei at 1.5%, Tuvalu at 3.2% and Turkmenistan at 3.7%, showing how exceptional Liechtenstein remains even within the world’s lowest-debt group.
Liechtenstein backs its near-zero debt with net government financial assets above 140% of GDP, giving it the clearest financial cushion of the four.
Brunei ran an 11.8% fiscal deficit in 2023/24 without borrowing, relying instead on financial buffers built during stronger oil and gas years.
Tuvalu’s 3.2% debt ratio offers little protection from climate costs, while Turkmenistan’s 3.7% figure carries weaker transparency than the headline suggests.
Macao and Niue report no public debt. Their political status separates them from sovereign states, with Macao governed as a Chinese Special Administrative Region and Niue operating in free association with New Zealand.
The IMF’s broad measure puts every sovereign state above zero. Its four lowest 2026 ratios appear below.
| Country | 2026 debt | What the ratio misses |
|---|---|---|
| Liechtenstein | 0.5% of GDP | Large assets, but export and ageing risks |
| Brunei | 1.5% of GDP | Oil wealth, but heavy hydrocarbon dependence |
| Tuvalu | 3.2% of GDP | Grant support, but severe climate exposure |
| Turkmenistan | 3.7% of GDP | Gas revenue, but limited fiscal transparency |
Their position is even more unusual in a year when global bond issuance is projected to reach $29 trillion.
Liechtenstein has the strongest overall position because its 0.5% debt ratio is backed by large public assets, recurring surpluses and transparent accounts.
Liechtenstein’s government describes the country as having no public debt. The IMF uses the more precise description “virtually zero” because its broader general-government measure includes short-term loans held by municipalities, equal to about 0.5% of GDP. The difference comes from accounting scope rather than disagreement.
The government recorded a fiscal surplus of 2.8% of GDP in 2025, while net financial assets across the general government remained above 140% of GDP. Those assets allow Liechtenstein to absorb a downturn without issuing new debt.
The main pressure comes from an ageing population and an export-heavy economy exposed to weak external demand and Swiss franc strength. Near-zero debt leaves the government unusually well placed to meet those costs.
Brunei’s government recorded no debt or interest payments in 2023/24, although the IMF projects broader general-government debt of 1.5% of GDP in 2026. The earlier zero and the later projection reflect different reporting periods and fiscal coverage.
The government ran a deficit equal to 11.8% of GDP in 2023/24 without borrowing. Deposits accumulated during stronger oil and gas years covered the shortfall.
Hydrocarbon revenue fell from 24.5% of GDP in 2022/23 to 13% one year later, almost halving as a share of the economy. Brunei can continue drawing on government deposits, but persistent deficits would eventually force Brunei to lower spending, sell more assets or issue new debt.
Tuvalu’s public debt is projected at 3.2% of GDP in 2026. Grants, fishing licence income and projects funded by development partners reduce the amount the government needs to borrow.
Those funding sources also limit fiscal independence. Fishing revenue can fluctuate, while major infrastructure and public services remain tied to external support.
Climate adaptation requires resources far beyond the capacity of Tuvalu’s small domestic economy. Near-zero debt reduces interest costs, but it cannot finance the scale of protection the country may need.
Turkmenistan’s general-government debt is projected at 3.7% of GDP in 2026. Gas export revenue and restrained capital spending have reduced the need for conventional borrowing.
The published figure provides a less complete picture than the data for Liechtenstein or Brunei. Reporting across state-owned companies and the wider public sector remains limited, leaving some government-linked liabilities difficult to assess.
A prolonged fall in gas revenue would pressure the budget and test how much fiscal room exists beyond the published figure.
Macao and Niue both report no public debt. Macao is a Special Administrative Region of China, while Niue is self-governing in free association with New Zealand and is not a UN member.
Their political status places both outside the four-country sovereign comparison.
Singapore carries gross public debt approaching 172% of GDP, more than 300 times Liechtenstein’s ratio. The number reflects how the government manages savings and financial markets, not routine deficit spending.
Singapore holds substantial financial assets and restricts how borrowing proceeds can be used. Government securities support pension savings, reserve management and the domestic bond market.
Gross debt shows what a government owes without showing what it owns. Singapore’s assets and borrowing structure make its public finances far stronger than the 172% figure suggests. Liechtenstein shows the power of near-zero debt backed by assets, while Singapore shows that financial strength does not require zero debt.
Liechtenstein has the lowest projected general-government gross debt among sovereign states, at about 0.5% of GDP.
Liechtenstein’s national government describes itself as debt-free. The IMF records debt near 0.5% of GDP because its broader measure includes short-term municipal loans. The two descriptions reflect different accounting boundaries rather than conflicting financial conditions.
Macao and Niue both report no public debt. Macao is a Special Administrative Region of China, while Niue is self-governing in free association with New Zealand and is not a UN member.
Singapore issues government securities to support pension savings, manage reserves and maintain a functioning domestic bond market. The proceeds are restricted from routine spending, while public financial assets offset the large gross-debt figure.
A large economy could reduce debt through sustained surpluses, faster growth, inflation or asset sales. Reaching zero would also remove a major source of safe financial assets and leave less fiscal flexibility during recessions, wars or national emergencies.
The IMF’s October 2026 World Economic Outlook will show whether Liechtenstein, Brunei, Tuvalu and Turkmenistan still hold the world’s four lowest sovereign debt ratios. New borrowing, reserve drawdowns or broader public-sector reporting could change the order.
The ranking may change in October. The real test is whether those low ratios still rest on assets, stable revenue and complete public accounts.
