A nation’s wealth is determined by its economic stability and prowess. And while a lot of countries are still striving for economic growth and prosperity, some have managed to emerge as leaders in amassing wealth.
What is GDP?
GDP stands for Gross Domestic Product. It is an economic indicator that showcases the total value of all goods and services produced in a country for a period, usually a year. It is mostly used by the government of a country to measure its economic health.
What is GDP Per Capita?
GDP per capita is a measure of how much economic output or income, on average, each person in a country generates. It is gotten by dividing the total GDP (the value of all goods and services produced) of a country by its population.
What is the difference between GDP and GDP Per Capita?
GDP provides the total value of economic production within a country usually within a year while GDP per capita gives an average measure of economic output each person generates in a country.
Top 50 richest countries in the world based on GDP per capita
| S/N | Country | GDP Per Capita | GDP | Population Size |
| 1 | Luxembourg | $135,683 | 86 billion | 655,489 |
| 2 | Bermuda | $110,869 | 7 billion | 64,055 |
| 3 | Ireland | $99,152 | 504 billion | 5,101,817 |
| 4 | Switzerland | $93,457 | 801 billion | 8,842,605 |
| 5 | Norway | $89,203 | 482 billion | 5,547,152 |
| 6 | Singapore | $72,794 | 397 billion | 5,987,131 |
| 7 | United States of America | $69,288 | 23.3 trillion | 333,772,010 |
| 8 | Iceland | $68,384 | 26 billion | 387,758 |
| 9 | Denmark | $67,803 | 398 billion | 5,852,704 |
| 10 | Qatar | $61,276 | 180 billion | 3,025,675 |
| 11 | Sweden | $60,239 | 636 billion | 10,285,938 |
| 12 | Australia | $59,934 | 1.6 trillion | 26,379,798 |
| 13 | Netherlands | $58,061 | 1 trillion | 17,247,312 |
| 14 | Finland | $53,983 | 297 billion | 5,566,268 |
| 15 | Austria | $53,268 | 480 billion | 9,159,142 |
| 16 | Canada | $52,051 | 2 trillion | 38,726,052 |
| 17 | Belgium | $51,768 | 594 billion | 11,739,522 |
| 18 | Israel | $51,430 | 489 billion | 9, 058,234 |
| 19 | Germany | $50,802 | 4.3 trillion | 84,579,285 |
| 20 | Hong Kong | $49,661 | 369 billion | 7,677,645 |
| 21 | New Zealand | $48,802 | 250 billion | 4,938786 |
| 22 | United Kingdom | $47,334 | 3.1 trillion | 68,945,912 |
| 23 | Macao | $45,422 | 30 billion | 675,640 |
| 24 | France | $43,519 | 3 trillion | 65,702,654 |
| 25 | Andorra | $43,048 | 3 billion | 80,115 |
| 26 | Japan | $39,285 | 4.9 trillion | 125,326,833 |
| 27 | Italy | $35,551 | 2.1 trillion | 60,198,032 |
| 28 | South Korea | $34,758 | 1.8 trillion | 51,400,260 |
| 29 | Malta | $33,257 | 17 billion | 445,031 |
| 30 | Brunei | $31,723 | 14 billion | 449,923 |
| 31 | Cyprus | $30,798 | 28 billion | 1,233,463 |
| 32 | Spain | $30,116 | 1.4 trillion | 46,808,524 |
| 33 | Slovenia | $29,201 | 62 billion | 2,079,786 |
| 34 | The Bahamas | $28,239 | 11 billion | 404,396 |
| 35 | Estonia | $27,281 | 37 billion | 1,329,180 |
| 36 | Czech Republic | $26,378 | 282 billion | 10,767,899 |
| 37 | Portugal | $24,262 | 254 billion | 10,108,590 |
| 38 | Turks and Caicos Islands | $24,047 | 943 million | 40,274 |
| 39 | Saudi Arabia | $23,586 | 834 billion | 36,423,878 |
| 40 | Lithuania | $23,433 | 66 billion | 2,609,773 |
| 41 | Bahrain | $22,232 | 39 billion | 1,877,481 |
| 42 | Slovakia | $21,088 | 117 billion | 2,079,786 |
| 43 | Latvia | $20,642 | 40 billion | 1,824,345 |
| 44 | Greece | $20,277 | 215 billion | 10,271,919 |
| 45 | Hungary | $18,773 | 182 billion | 9,587,579 |
| 46 | Saint Kitts and Nevis | $18,230 | 1.05 billion | 54,316 |
| 47 | Poland | $17,841 | 679 billion | 37,723,615 |
| 48 | Croatia | $17,399 | 69 billion | 4,030,127 |
| 49 | Barbados | $17,034 | 5 billion | 288,419 |
| 50 | Uruguay | $17,021 | 59 billion | 3,509,471 |
Source: The data on the GDP and GDP Per Capita on this page are from the World Bank and presented in US dollars (USD). And the population size data is from Worldometer.
How is GDP calculated?
GDP is usually calculated in different ways depending on inflation, population changes, and changes in the value of a currency. But, the most common one is the expenditure approach, which adds up the spending on various components of the economy. The components include:
- Consumption (C): This includes the expenditure on personal consumption of households, such as food, housing, transportation, healthcare, and entertainment.
- Investment (I): This includes expenditures businesses invest in equipment, machinery, changes in business inventories, construction of new buildings, and structures.
- Government Spending (G): This includes expenditures incurred by all levels of government, such as salaries of government employees, public infrastructure projects, and purchase of goods and services for the use of the public.
- Net exports (NX): This shows the difference between exports (the value of goods and services produced domestically and sold abroad), and imports (the value of goods and services produced abroad and bought domestically). If the value of exports is higher than that of imports, there will be a trade surplus, which means there is an increase in GDP. Conversely, if imports are higher than exports, there will be a trade deficit, which means a subtraction from GDP.
What is the Formula for Calculating GDP?
The formula for calculating GDP using the expenditure approach is: GDP = C(consumption) + I(Investment) + G(Government spending) + NX(Net exports)
What is the richest country per GDP Per Capita?
The richest country in the world is Luxembourg, with a GDP per capita of $135, 683.
This is because of its diversified economy, strong financial sector, and favourable tax policies. Luxembourg’s wealth is mostly sourced from the banking, steel, and industrial sector. The country is best known as the one with the largest banking center with 200 banks and 1000 investment funds operating there.
Renowned for its favourable business environment, political stability, and robust regulatory framework, Luxembourg has become a home for international investors. The country’s banking sector, investment funds, and wealth management services attract capital from around the world.
Luxembourg is committed to innovation, particularly in financial technology (FinTech), and this has further solidified its status as a leading country in the financial services industry.
What are the 10 Richest Countries in the World?
The 10 richest countries in the world are:
- Luxembourg – $135,683
- Bermuda – $110,869
- Ireland – $99,152
- Switzerland – $93,457
- Norway – $89,203
- Singapore – $72,794
- United States of America – $69,288
- Iceland – $68,384
- Denmark – $67,803
- Qatar – $61,276
Bottom Line
The richest countries in the world showcase different factors that contribute to their economic prosperity. Luxembourg has through its commitment to financial technology attracted international investors to itself and thereby in the lead, despite its small size.
However, it is important to know that, that a country is wealthy doesn’t mean there is equal distribution of wealth among its citizens. When measuring a country’s well-being, it is important to take into consideration its social welfare, and other socio-economic factors.
Also, economic ranking fluctuates at every point in time due to various global and domestic factors. Changed technological disruption, policy shifts, commodity prices, and geopolitical events can influence the economies of these nations.
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