Richest Country, the term itself is a broad one. The richest country with the highest GDP per capita in 2023 is Luxembourg. This European nation, with a population of roughly 600 thousand, has a per capita GDP of approximately $127 thousand.
The world’s GDP per capita has gradually increased over time, and the global quality of living has improved dramatically. The International Monetary Fund has measured the GDP of every nation on earth. As of 2022, the countries with the highest GDP are:
Luxembourg’s wealth comes from many different industries, such as banking, steel, telecommunications, and tourism.
Even though only about 600,000 people are living here, it is impressive that there are over 9,000 holding companies and the European Investment Bank. Businesses have been moving to Luxembourg for years to pay low taxes and pass the savings on to their customers.
Ireland, The second richest country in the world. Their growth comes mainly from agriculture, textiles, food, information technology, mechanical engineering, and medicines. Ireland’s leading trade partner is the United Kingdom.
Approximately 30% of Norway’s GDP is derived from the oil and gas industry. Iron, magnesium, titanium, and aluminum are among their exports. Over the past four or five decades, Norway’s economy has radically shifted from the fishing sector to the oil business.
Norway is the twelfth largest oil-producing country worldwide. It is the fifth-greatest exporter of oil and third-largest exporter of gas.
Norway was rapidly generating more oil per person than any other nation. In Norway, the oil industry was becoming a major business. As a result, there were thousands of new employment generated. With the gift of oil, Norway was transitioning from a fishing-based economy to an oil-based economy that would generate billions of euros.
Switzerland is known worldwide for making high-quality goods, and people from all over the world are willing to pay more for that. Most of the things made in Switzerland are usually of very high quality.
The fact that Swiss companies put quality over price has made them very popular and well-known. It was also a big part of their economic growth because their companies brought more money from other countries into Switzerland. This helped them grow and hire more Swiss workers.
Swiss businesses are already so big that now they hire workers not just from Switzerland but from all over the world.
Swiss multinational companies like Nestle, Rolex, Roche, Novartis, and Glencore, to name a few, contribute to the Swiss economic miracle and help build Switzerland’s legacy as a good quality producer.
Qatar’s economy is one of the most open in the middle east. The nation is renowned for its excessive wealth. Qatari people enjoy one of the highest monthly net earnings in the world, and the state owns or partially controls several world icons, from the Empire State Building in New York to the Paris Saint-Germain football club in France.
In recent decades, the demand for oil and natural gas has increased. As a result, it has aided Qatar in becoming the most stable economy in the Middle East.
However, possessing large oil and gas reserves does not ensure a thriving economy. For example, look at Valenzuela.
Most oil-rich economies squander money today rather than saving it for future economic development.
Qatar was aware that oil revenue is very variable. Therefore it began to save and invest the money it got from oil revenues.
The Qatar Investment Authority is a government-created fund that was established in 2005. As a sovereign wealth fund, it invests the money it receives from oil earnings to strengthen its economy and minimize its long-term reliance on oil.
The Qatari sovereign wealth fund invests worldwide to diversify and expand the global assets of Qatar’s economy.
The Qatar investment fund was valued at 360 billion dollars in 2022. It has global investments in several asset types, including real estate, public corporations, and currencies.
Singapore’s income and corporation tax rates are half of those in the United States. Low taxes attracted many overseas businesses to Singapore, encouraging foreign direct investment as more companies invest in the economy, economic growth increases.
In the 1960s, when other economies had high tax rates, Lee Kuan Yew kept Singapore’s tax rates low to attract international investment.
The government has ordered Singaporeans to deposit a part of their salary into their CPF as their incomes rise (Central provident fund).
In 1955, CPF was established by the British colonial government. Every employee is required to keep a CPF account and deposit a portion of their salary into a CPF account, with the employer making a corresponding payment.
7. United States
The U.S. economy is the most powerful in the world, comprising nearly about 20% of the world’s GDP. More than 75% of the US GDP per person comes from the pharmaceuticals, oil, and gas industry. In addition, 20% comes from making cars and airplanes.
An entrepreneurial culture. People in the United States want to start businesses and help them grow and are willing to take risks. In the U.S., failing and trying again does not get you in trouble. Students who have gone to college or business school still want to start their businesses. In addition, the success of places like Silicon Valley and companies like Facebook makes people want to start their businesses.
A financial system that helps people start their businesses. The United States has a more advanced equity financing structure than European nations, and its banking system is less centralized, which is advantageous for local companies. In addition, the equity financing system involves “angel investors” who are eager to support new enterprises and a very active private investment market that helps finance the expansion of corporations.
In addition, more than 7,000 small banks in the national system of small local banks give loans to new businesses. These small banks are essential in their local communities.
Most of the basic research that drives high-tech entrepreneurship comes from U.S Universities. In addition, faculty members and people who have gotten their Ph.D. often spend time at new businesses near these universities. Both universities and companies like it when their activities overlap. This is because of how their cultures work. The best research universities bring in intelligent students from all over the world, and many stay in the U.S.
A population that is growing due to both natural growth and immigration. With a larger population comes a younger workforce that is more flexible and easier to train.
The workforce is more productive when people can move around a lot within the United States. Because the actual income is higher in the United States, ambitious and talented young people from all over the world want to move there. Even though there are limits on who can come to the U.S., there are also special rules that give people access to the U.S. economy and a way to become a citizen (“green card”) based on their skills and the support of businesses. People who want to come to the United States can do so through a separate “green card lottery.”
People are more likely to work hard and long hours if the culture and tax system support that. For example, the average American worker puts in 1800 hours per year, much more than the 1500 hours they put in in France and the 1400 hours they put in Germany. But, people in some Asian countries work much longer hours. For example, in Hong Kong, Singapore, and Korea, people work more than 2,200 hours per year.
A source of energy that gives North America energy independence from other sources. The government ownership of land and mineral rights has encouraged the spread of oil and gas exploration and production.
The government is smaller than in other developed countries. For example, the OECD says that total spending by the federal, state, and local governments in the U.S. was 38% of GDP, while the same number was 44% in Germany, 51% in Italy, and 57% in France.
The U.S. has a system of government that is not centralized, and states compete with each other. Competition between states encourages people to start businesses and work hard, and the legal systems protect the rights of business owners and property owners.
The United States political system gives each fifty states a lot of legal rules and taxing power. As a result, the states compete for businesses and people to live in them by having different laws and tax systems.
Some states don’t have income taxes and laws that make joining a union hard. Universities in each state offer low tuition rates to students who live in that state.
They also have different laws about who is responsible for what. Both small businesses and big companies are interested in legal systems. The United States may be the only high-income country that is as decentralized as it is.
According to the IMF, tourism, exports, and investment have fuelled Iceland’s GDP growth. The IMF also forecasts that the country’s tourist industry will see sustained expansion.
The Icelandic economy is sustained on aluminum smelting, fishing, and tourism. Iceland’s primary exports of materials are iron and fish products, while its primary exports of services are tourist industry services.
The Australian economy is flourishing because it has a lot of natural resources, and things are even better now that the prices of many commodities have risen.
Australia makes the most iron ore, bauxite, and opal of any country worldwide. It makes the second most gold, manganese, and lead of any country. The Australian economy also has other goods, such as zinc, cobalt, uranium, natural gas, coal, and many more.
As well as this, the fact that Australia is close to Asian markets that are growing has helped its economy take advantage of the country’s many natural resources.
The mining industry also gives jobs to Australians with and without a lot of skills that pay well.
Superannuation is how people in Australia save money for their old age. The Australian government made the superannuation guarantee in 1991.
A new law said that workers had to put away a certain amount of their pay into a pension plan. Then, like a 401k in the United States or a defined contribution pension in the United Kingdom, these accounts are put into the stock exchange.
Almost every person who worked in Australia had to follow these rules. Today, the amount of the contribution is 10%. By July 2027, this will have gone up to 12%. The superannuation scheme is a tax-efficient way for employees to save for retirement, so they can put in more money and do so at some point.
Denmark’s economy comes from its citizens rather than its natural resources. Even though they do produce some oil and gas in the North Sea.
Their main exports are industrial and manufactured goods (mostly machinery and technical instruments, some chemicals, especially those used in medicine and drugs, and long-lasting consumer goods like furniture), as well as agricultural goods (primarily dairy and meats, fish, and some grain). As a result, they send out more goods than they bring in.
Denmark’s logistics, shipping, and energy industries are also well known. But, unfortunately, they also send out more energy than they take in.
Their economy also benefits from the fact that their labor policy is based on a solid commitment to consensus. Employers, unions, and the government have all agreed to work together and have the same idea of each group’s needs and wants. As a result, even though there are still problems, they are dealt with in a way that has little effect on the country’s economy.
As a country, they also have social services that encourage retraining and make the workforce more flexible. They also have proactive and preventative health practices, national healthcare (which lowers the cost of healthcare), and a robust environmental policy. This means they tend to deal with problems before they get worse and cost more to fix.
The world’s richest countries in terms of GDP per capita are listed below.
|Ranks||Country||GDP Per Capita
|18||Hong Kong (SAR)||49700|
|20||United Arab Emirates||47793|
|51||Trinidad and Tobago||20746|
|56||Saint Kitts and Nevis||19129|
|61||Antigua and Barbuda||16787|
|94||Bosnia and Herzegovina||6818|
|133||West Bank and Gaza||3517|
|134||Papua New Guinea||3427|
|139||Congo, Republic of||2945|
|151||São Tomé and Príncipe||2231|
Read More World’s Richest Cities by GDP (Nominal)