5 Countries With Almost Zero Debt

CHENNAI: With increasing recession and drowning economies, not only companies but most of the countries are under debt these days. Debt plays an important role in the economic status of a country. Not many countries in the world will be debt free. Have you ever thought about countries that live with least or zero debt? Checkout the list below compiled by THE RICHEST:

1. Palau

Palau is a tiny country with a population of just over 20,000 people. It is located in the North Pacific Ocean, which is in the southeast of the Philippines. The country’s economy is dependent on agriculture and fishing. Agriculture is mainly on a survival level and the principal crops are coconuts, root crops, and bananas. Fishing is also a potential source of revenue for the country. The country is said to be relying heavily on two things, one being tourism and the other, the U.S. government. The U.S. government agreed to pay Palau up to $700 million dollars in return for having access to military facilities on the island. In addition to that tourism industry has allowed Palau to remain debt-free.

 2. Liechtenstein 

Liechtenstein is a tiny European country located between Switzerland and Austria with a population of just 35,000 people. Despite being a small country with limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized and free-enterprise economy with a vibrant financial service sector.  The Liechtenstein economy depends on various and large number of small businesses. The country has low business taxes with the maximum tax rate of 20 percent and many holding companies with established nominal offices provide 30 percent of state revenues. Liechtenstein has also been a member of the European Economic Area since May 1995.

3. Brunei 

Brunei is located in the border of Malaysia. It is a small country with a wealthy economy that is a mixture of foreign and domestic entrepreneurship, welfare measures, government regulation, and village tradition. Brunei generates a good deal of its revenues from the export of crude oil and natural gas.  The country has a high GDP per capita and it also has substantial income from overseas investment supplements and from domestic production too. The government of the country provides all medical services along with food and housing. It has also diversified from the economies of oil and gas.  Japan, Indonesia and Australia are its three biggest trading partners.  

4. British Virgin Islands 

 

 

The Virgin Islands popularly known as the British Virgin Islands, is located to the east of Puerto Rico. This island is known as the offshore financial centre, as it enjoys one of the most prosperous economies of the Caribbean region. The country’s economy is mainly dependent on tourism and financial services. Tourism is one of the main sources of revenue as it employs a greater number of people within the territory. It also has a larger proportion of the businesses in the tourist industry which are locally owned.

5. Macau 

Macau is considered as one of the most popular tourist hub over the last couple of years. Apparel exports and gambling-related tourism are two main sources for the country’s economy. It has turned into an extremely popular gambling hub ever since opening its casino industry to foreign competition in 2001. Macau is currently rated as one of the world's top tourism destinations by the World Tourism Organization according to Wikipedia.  On an annual basis the country has billions of dollars in foreign investment pouring in. The territory has relied more on gambling and tourism-related services to generate growth and remain debt free.