There are many countries known for their luxury and high-profile living, Singapore and the US are the big examples. However, we have surveyed several and researched several articles to present you with the list of the top 10 richest countries in the world.
This article goes further to explain the concept of wealth, size and the impact of global crises on these nations and goes further to identify the World’s Richest Country in the world today.
Table of Contents
It’s the Great Time to Understand Wealth: GDP vs. PPP
When comparing the economic power of a nation, one name that is likely to pop up is the Gross Domestic Product or GDP. It represents a total sum of all the goods & services that has been produced within a particular country. However, there are some limitations of Gross Domestic Product such as it fails to compare the matters by containing the price level of the countries.
Introducing the Purchasing Power Parity (PPP), which is a far better method that is used due to the costs to live in a particular country. PPP uses GDP and then adds the effects of inflation and exchange rates to better establish how far one’s money will go in that region.
You can try to put New York City and Mumbai on the same ratio card with reference to the living standard only with the help of the GDP. Although the GDP per capita of Mumbai is less than in other cities, making money in the city is rather cheap. PPP would adjust for such differences, and then give a clearer picture of the real purchasing power parity of the average citizen in each city.
The average per capita consumption in the ten richest countries of the world is forty times the IMF basic needs figure and one hundred and ten thousand US dollars per year or more. On the other hand, the poorest countries hover around $1500 or less than that. The above difference clearly indicates that the poverty level among the people of this world is extending more and more in distance away from the rich.
The distinction between GDP and PPP therefore deserves to be clearly understood to fully understand the workings of the global economy. While using GDP provides an overall picture, PPP provides a much better picture of the actual standards of living in different countries.
Source:
International Monetary Fund (IMF): https://www.imf.org/en/Home
Let’s Explore the World’s Richest Country from Top 10 Richest Countries
10. Norway 🇳🇴
Current International Dollars: 82,832
Norway is among the 10 World’s Richest Countries in an oil endowment. In the late 1960s, there were huge resources of oil in the North Sea. It has the largest sovereign wealth fund in the world nearly $1.4 trillion. Norway has also been in a position to bounce back after a 6.3% GDP contraction in the early part of 2020 and has the lowest income inequality.
9. United States 🇺🇸
Current International Dollars: 85,373
The US is an exception on this list as it is the largest country by land area of all the countries in the list. It has enjoyed economic activities that have been done during the pandemic period such as increased consumer expenditure. According to the IMF, the American economic growth estimate for 2024 is 2.7% and the country is expected to remain the world’s largest economy.
8. San Marino 🇸🇲
Current International Dollars: 86,989
San Marino, a small European country is one of the smallest countries in Europe and still has a relatively sound economy and comes in the World’s richest country list. It has low taxes and it does well in the area of business attraction, and its tourism and manufacturing sectors have been favourable through the latest economic cycles.
7. Switzerland 🇨🇭
Current International Dollars: 91,932
Switzerland is rich and this has something to do with banking. This means that the proportion of the millionaire population is high because the overall mean wealth per adult in the country is $ 685230. However, problems like for example the banking crisis that was recently and the lift of the interest rates are factors that can be seen to be a threat to the economy of the country.
6. United Arab Emirates 🇦🇪
Current International Dollars: 96,846
Historically, the UAE almost entirely depends on the global export of oil and the gas that comes with it. However, the country has tried in recent years to diversify its economy through investment in the tourism, trade and finance industries.
The pandemic momentarily shifted the UAE downwards in the rankings of a wealth powerhouse, but it was on the rise once again as the energy prices started rising. And, it is also comes in the World’s richest country list.
5. Qatar 🇶🇦
Current International Dollars: 112,283
At the moment Qatar possesses significant proven plus probable reserves of oil and gas and boasts high per capita, gross domestic product with a population of approximately 3 million residents. Nevertheless, these shocks have not spared this country, especially during the current pandemic, and fluctuating crude oil prices; nevertheless, the economy is robust, and the projected economic growth for the year 2024 is 2%.
4. Singapore 🇸🇬
Current International Dollars: 133,737
Having no other resources as such, Singapore has grown to become a formidable financial hub thanks to good management and a proper legal framework. It is among those countries whose economy was significantly affected by the pandemic but experienced a massive boost in the year 2021.
However, the turbulent state of the global economy has slowed down development expectations.
3. Ireland 🇮🇪
Current International Dollars: 133,895
The main cause of Ireland’s growth of wealth is because of its low corporate tax rates which attract multinationals. Although the economy of most of the countries has been gradually recovering from previous crises, the present structure of income distribution is very unfair, where the majority of the population has little or no income and the rest have most of the income.
2. Macao SAR 🇲🇴
Current International Dollars: 134,141
Macao’s economy is highly dependent on its casino sector. And, sometimes it’s referred to as the Asian Las Vegas. It has recovered from dips during the pandemic and is among the wealthiest regions in the world, with a PPP per capita of over $125,000.
1. Luxembourg 🇱🇺
Current International Dollars: 143,743
Luxembourg remains one of the richest nations on the planet, year in and year out. The nation has a small population and a powerful financial segment, which provides a comfortable life. However, it has been threatened by shifts in the global economy and the pandemic but has been persistent and has posted small growth in the post-crisis period.
Conclusion:
The findings obtained when analyzing the relationship between wealth and the size of countries show that there is no simple picture of the world economy. The developed countries are able to amass a lot of wealth per head owing to small populations and strong financial structures. However, the inequalities within these nations are the major problems in understanding the real worth of nations, especially after the occurrence of global shocks. It is therefore important for policymakers and economists to appreciate such dynamics to appreciate and anticipate future trends in international finance.
However, if you like these types of blogs, we welcome you to our Futurestatista website.
FAQ’s
What are the criteria of a ‘rich’ country?
Most of the time, a “rich” country is one that has high per capita income that can be calculated through the GDP or PPP.
Why are small countries richer?
Small countries are usually not very populous and therefore can have a high per capita GDP if they have a sound financial sector or are endowed with natural resources.
What is the impact of the pandemic on inequality?
The pandemic revealed deep disparities; affected low-wage workers the most; and underscored the lack of social protection.
Are all wealthy countries tax havens?
Not all wealthy countries are tax havens, but many use favourable tax regimes to attract foreign investments, leading to inflated GDP figures.
How can we measure true economic well-being?
True economic well-being can be measured by considering income distribution, access to resources, and quality of life indicators, not just GDP or wealth per capita.
