Are There Any Countries Not in Debt? 

Are there any countries not in debt? Yes, when referring to public debt. Monaco’s government states that it has no public debt, making it an example of a debt-free government.

However, this does not mean every household, business or bank within that country is debt-free. It also differs from having very little government debt or financial assets worth more than outstanding borrowing.

The distinction matters as borrowing rises globally. The IMF’s April 2026 Fiscal Monitor estimated global public debt at just under 94% of GDP in 2025 and projected it would reach 100% by 2029.

What Counts as National Debt?

National debt generally refers to outstanding government obligations, rather than all borrowing across an economy. General government debt covers central, regional and local government, alongside relevant social security funds. A narrower central-government figure can therefore leave out some public borrowing.

The debt-to-GDP ratio compares government debt with the size of the economy. For example, £10 billion of debt against annual GDP of £100 billion produces a ratio of 10%. This measures debt relative to economic output, not the proportion of government revenue spent on repayments.

Debt-Free Countries and Important Exceptions

The following examples show why the debt measure and reporting date need to accompany any claim about a debt-free country.

Country	What the official source reports	Reference period
Monaco	The government states that it has no public debt.	Undated official policy statement.
Liechtenstein	Public debt estimated at 0.5% of GDP.	2025 estimate, published by the IMF in March 2026.
Brunei Darussalam	BND352 million in outstanding government sukuk securities.	3 September 2026.

These are different measures, not a like-for-like ranking. Brunei’s figure covers outstanding government sukuk rather than a comprehensive total of all government liabilities.

Liechtenstein is better described as nearly debt-free, not completely debt-free. Its public finances also do not represent household finances: the IMF separately highlighted elevated household indebtedness in January 2026.

Macao needs a separate label. The IMF’s 2024 consultation report stated that it had no public debt. However, Macao is a Special Administrative Region of China, not an independent country. That historical finding should not be presented as a newly verified 2026 figure.

No Net Debt Is Not the Same as No Debt

To answer “are there any countries not in debt?” accurately, it is also essential to distinguish gross debt from net debt.

Gross debt measures obligations before accounting for financial assets. Net debt deducts relevant financial assets. A government can therefore owe money while holding assets worth more than its debt.

For example, a government with £20 billion in debt and £25 billion in eligible financial assets would have negative net debt of £5 billion. Nevertheless, creditors would still be owed £20 billion.

Singapore illustrates why assets matter. Its Ministry of Finance states that financial assets substantially exceed government debt. Most borrowing proceeds are invested, while a smaller category of borrowing finances nationally significant infrastructure.

Having assets that exceed debt does not remove the obligation to repay it.

Government Debt Versus a Budget Deficit

A budget deficit occurs when spending exceeds revenue over a period. Debt measures outstanding obligations at a particular date. A low debt figure therefore does not, by itself, show whether a government is balancing its budget.

Brunei provides a recent example of why these figures must be read separately. In its assessment published on 23 September 2026, the IMF estimated a fiscal deficit of 18.9% of GDP for FY2025/26, reflecting weaker hydrocarbon revenue and elevated spending.

That 18.9% figure is not Brunei’s debt-to-GDP ratio. It measures a fiscal-year shortfall, whereas the central bank’s sukuk figure measures securities still outstanding.

Why Do Governments Borrow?

Governments may borrow to finance infrastructure, respond to emergencies or maintain services when revenue falls during a recession. Borrowing allows costs to be spread over time rather than funded entirely from current taxation.

They also issue new debt to repay obligations reaching maturity. This process is called refinancing. The OECD’s Global Debt Report 2026 projects that 78% of OECD government borrowing in 2026 will refinance existing debt.

A large borrowing programme therefore does not necessarily mean an equally large increase in total debt. However, replacing older debt at higher interest rates can increase future financing costs.

Why Does National Debt Matter to Traders?

National debt can affect bond yields, borrowing costs and currency sentiment, so it matters to forex and macro traders.

If investors become concerned about a country’s ability to manage its debt, bond yields may rise and confidence in its currency may weaken. However, low debt alone does not guarantee a stronger currency.

Traders should consider debt alongside interest rates, inflation, economic growth and fiscal policy when analysing a country’s financial outlook.

What Does Government Debt Mean for Financial Markets?

For investors, debt sustainability concerns a government’s ability to keep servicing its obligations without a default or extraordinary financial support. When payments fall due and whether refinancing remains available matter alongside the headline debt figure.

Currency exposure is also important. When debt is denominated in foreign currency, depreciation of the domestic currency increases its local-currency cost. Investors may demand higher bond yields when they perceive greater repayment risk.

For forex traders, this means analysing debt alongside borrowing costs and exchange-rate exposure. A low debt ratio alone is not a trading signal.

Conclusion

So, are there any countries not in debt? Yes, when the question concerns public debt, with Monaco providing an official example. However, that statement should not be extended to every household or business within its borders.

The key is to check what the figure measures and when it was reported. Zero debt, low debt and negative net debt describe different situations. Understanding those differences is more useful than relying on an undated list of supposedly debt-free countries.

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