Following the US and European debt crises, we experienced what happen when a country accumulates too much debts (which cannot be covered by its national reserves), then fails to meet its debt obligations (i.e. interest)
Today we will take a look at the countries who are the most stable fiscally., who not only have enough to cover its debts but far more to spend around. Calculations is taken via National reserves (foreign reserves + gold reserves) minus National debts.
Foreign & Gold Reserves: $2,622 billion
Source of Money: Manufacturing, Trade & Exports
Debt: $407 billion
Net Balance: $2,215 billion
A bankrupted nation in the 1950s, China progressed to be the largest manufacturing and exporting nation as of today. The country has built up the world’s biggest reserves. Rapid industrial and economic development have put China on path to become the world’s no.1 economy in 20 years.
2. Saudi Arabia
Foreign & Gold Reserves: $456 billion
Source of Money: Oil & Gas
Debt: $83 billion
Net Balance: $373 billion
Since oil first struck in Saudi Arabia in 1938, the country has been going on pretty well. Saudi Arabia possesses 25 per cent of the worlds proven petroleum reserves and ranks as the largest petroleum exporter, bringing in $500 million every day. Oil accounts for 90% of Saudi export earnings and high oil prices in recent years did help a lot.
Foreign & Gold Reserves: $387 billion
Source of Money: Trade, High-Tech Exports
Debt: $91 billion
Net Balance: $296 billion
A living standard only slightly above Africa in 1960s, Taiwan has developed itself to become a high-tech electronics and IT powerhouse, accounts for 70% of world’s IT fabrication market share. With a diversified economy ranging from electronics to petroleum refining to chemicals to pharmaceuticals, Taiwan is able to stock up one of the world’s largest reserves.
Foreign & Gold Reserves: $226 billion
Source of Money: Trade & Investment
Debt: $22 billion
Net Balance: $204 billion
When Singapore broke away from Malaysia in 1965, who would have thought the tiny island can generate so much wealth in 50 years. Singapore built itself to be one of Asia’s most important trading nation and a leading financial center in the world. Strategic investment success filled up Singaporean reserves to be among world’s largest.
Foreign & Gold Reserves: $150 billion
Source of Money: Oil & Gas
Debt: $4 billion
Net Balance: $146 billion
Petroleum accounts for 95% of export earnings, Algeria paid off most its debts in 2006 thanks to high oil prices. Not only rich in oil & gas, the country is also abundant in mineral resources, timber and agricultural lands. With the income from such exports Algeria stacked up a considerable amount of reserves.