Most of the richest countries in the world are in Europe, an understandable fact given their long history of successful free-market economy, democratic values, security and social life. But how do we define which of the countries are the wealthiest in the world?
The answer lies in gross domestic product (GDP) per capita, a metric which helps get an estimation of the share in the country’s GDP by each of its citizens. In simple words, the higher the GDP and the lower the population, the higher the GDP per capita.
The wealthiest countries in the world by GDP per capita
Luxembourg
Continent: Europe
GDP per capita: USD 135,610
GDP: USD 89.1 billion
Population: 639 thousand
Spanning 2,586.4 square km, Luxembourg is one of the smallest countries in the world. The landlocked nation is surrounded by Belgium, France and Germany and is a major tourist destination in the region. Despite its small size and low population, Luxembourg is one of the wealthiest nations in the world and is categorised as a developed country by both the IMF and World Bank. Much of the country’s source of income comes from its extremely lucrative financial sector, which accounts for 25 per cent of its GDP.
Ireland
Continent: Europe
GDP per capita: USD 112,250
GDP: USD 589.57 billion
Population: 5.03 million
Located to the west of the United Kingdom, Ireland has been a financial powerhouse for a long time, owing to its robust banking industry. The Organisation for Economic Co-operation and Development (OECD) noted in its June 2023 report that the country has enjoyed double-digit growth in the last two years. But while it cautioned that GDP growth will fall to 4.4 per cent in 2023 and 3.7 per cent in 2024, employment growth and tourist season will help keep consumer spending “relatively strong” in 2023.
Switzerland
Continent: Europe
GDP per capita: USD 102,875
GDP: USD 813 billion
Population: 8.70 million
Being one of the most beautiful international destinations in the world has its perks. No wonder then that tourism remains one of the biggest contributors to the Swiss economy. In fact, 74 per cent of Swiss GDP is generated by the services sector and 25 per cent by industry. But the industry is nevertheless very influential. One of them is watches. According to the Federal Department of Foreign Affairs (Eidgenössisches Departement für auswärtige Angelegenheiten) of Switzerland, the country exported 20.7 million watches worth USD 24 billion in 2020. Even then, this was just 8 per cent of all exports for the year. The largest share of exported goods were chemical and pharmaceutical products, making up 52 per cent of all exports.
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Norway
Continent: Europe
GDP per capita: USD 99,273
GDP: USD 546.77 billion
Population: 5.41 million
Norway has been an oil-rich nation following the discovery of large offshore reserves in the late 1960s. Oil is, therefore, its main source of revenue. Rising prices have gone on to benefit the Western European country’s economy greatly. The country has a USD 1.3 trillion sovereign wealth fund as well, which is the world’s largest and is meant to help the country in a crisis. It also has one of the lowest income inequality gaps, meaning that its GDP per capita is far more an accurate representation of every Norwegian’s economic status than most other high-GDP countries.
Singapore
Continent: Asia
GDP per capita: USD 87,885
GDP: USD 497.35 billion
Population: 5.45 million
The city-state of Singapore has been one of Asia’s most developed economies for a long time. Its rise to growth started after its separation from Malaysia in 1965 under the visionary leadership of Lee Kuan Yew, who was the island nation’s first Prime Minister. Singapore, which has an area of only 719 sq km, is a leading economic destination in Asia, serving as a central trading hub in the region and housing the headquarters of several major businesses.
Qatar
Continent: Asia
GDP per capita: USD 81,971
GDP: USD 235.5 billion
Population: 2.93 million
The peninsular Arab country is located south of Bahrain and west of Saudi Arabia. It is one of the world’s most important oil-rich nations.
United States of America
Continent: North America
GDP per capita: USD 80,413
GDP: USD 26.95 trillion
Population: 332 million
The US is the world’s largest economy, with a GDP that is roughly 1.5 times larger than the second-largest China. The US is the centre of world trade and power. It is the home of nearly all of the world’s largest companies, especially in technology. Its military industry outsizes the combined size of most of the world’s other large economies. But it also suffers from major economic problems such as income inequality as objectively seen from the number of homeless populations in some of its most progressive states such as California and New York.
Iceland
Continent: Europe
GDP per capita: USD 78,845
GDP: USD 30.57 billion
Population: 373 thousand
Located between Greenland and the UK, Iceland is a Nordic island nation renowned for its breathtaking landscape carved by volcanoes, geysers, hot springs, lava fields and glaciers. Its export-driven economy is among the fastest-growing in the OECD region. Much of this is because of foreign tourism and strong domestic demand. It also has robust aluminium smelting and fishing industries.
Denmark
Continent: Europe
GDP per capita: USD 71,405
GDP: USD 420.8 billion
Population: 5.86 million
The Scandinavian country comprises numerous smaller islands and the Jutland peninsula. It is a picturesque nation known for its famous tourist attractions, cobbled streets and timbered houses. Service industries, trade and manufacturing are the primary parts of its economy.
Australia
Continent: Australia
GDP per capita: USD 63,490
GDP: USD 1.69 trillion
Population: 25.77 million
Australia is the mainland of the continent of the same name. Mining has an industry share of about 14.6 per cent followed by health and education at 13 per cent. Resources have a share of 63.3 per cent in exports, and China serves as the principal export destination.
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(All GDP per capita figures according to International Monetary Fund as of October 2023)
(Hero image: Courtesy of Polina Sushko/@plnsushko/Unsplash; Featured image: Courtesy of Duy Nguyen/@duykhuongxyz/Unsplash)
This story first appeared on Lifestyle Asia India
Frequently Asked Questions (FAQs)
– Which is the no.1 rich country?
The richest country in the world by GDP per capita is Luxembourg.
– Is India a rich country, as of 2023?
India has a growing GDP. However, due to its massive population, the GDP per capita is low.
– Which is the fourth richest country in the world?
The world’s fourth richest country, according to the IMF, is Norway.
– How did Qatar become rich?
Qatar became rich due to its oil wealth.
