What is the definition of a rich country? Is it the one with most amazing infrastructures? Or is it the one with the least debt deficit?
How does a country end up with the biggest or the least debt deficit? When a country experiences slower financial development, the government receives less in tax income. Therefore, the country has to take a loan to keep up the delivery of essential services. Any resources borrowed accumulate as public debts, and will eventually have to be paid back. This financial debts are not necessarily a very bad things. In fact, it’s quite normal for a country to raise debts. But excessive debts could put a country’s future financial wellbeing at risk if the actual reasons that your debts was required in the first place are not resolved.
One of the ways to evaluate countries least debt deficit is the debt-to-GDP ratio. Where financial debts are calculated in dollars and GDP is calculated in the value of products or services produced yearly. Therefore, the greater the rate, the longer it will take a country to pay off its debts.
While many countries around the world are being affected by debts and failures, the countries on this least debt deficit list have been able to keep their responsibilities low. Many but not all of the countries are rich in natural resources, which may help them keep their debts levels low.
There are many different ways to determine debts, and this article concentrates on public debts. Public debts relates to the amount of debts due by the federal government to other parties. This does not include debts that the federal government owes to itself.
So which are the top ten countries least debt deficit ratios with the cheapest levels of public debt? The answers might surprise just you.
10. Algeria – Debt Deficit: 7.9% of GDP
In the 10th rank of our top 10 countries with least debt deficit is Algeria. It is a North Africa country situated along the Mediterranean Sea. It is the home of Maqam Echahid, and many other world heritage sites.
It has the world’s ninth biggest confirmed gas supplies and 17th biggest oil supplies. This means the world to drive financial development forward without having to rely on loans and debts.
The country also scores well in human development signs, signifying that the US government has been able to put its oil reserves to good use.
Algeria may not seem to be a rich country. But it manages to develop healthily in the aspects of economy with minimum percentage of deficit, only 7.9% of its $213,518 GDP. It may be on the bottom of our top 10 list, but it has certainly surpassed many other countries.