While GDP per capita is an inaccurate statistic, it is a useful indicator for gauging a nation's quality of life.
Tiny Countries in Europe lead the position, owing to their exceptionally strong organizations, balanced and stable policy environment, and strong educational system, with the US and Singapore filling out the top ten.
Some extremely small and highly prosperous countries, such as Luxembourg, Singapore, and Hong Kong, benefit from the powerful and efficient financial system and taxation policies that enable enticing capital inflows and skilled expertise. Others, such as Qatar and Brunei, have abundant resources of hydrocarbons or other valuable mineral wealth.
In the age of widening disparities in income between rich countries and the rest of the world, a rich country can be defined in terms of GDP. GDP is a form of measurement that helps measure the value of any products and services generated within individual countries. A more accurate and precise way of measuring the wealth or richness of the country would be by dividing the result of GDP by the number of residents or people in the country. It is certainly a better approach to determine how rich or impoverished one country is in comparison to the other. This makes it evident rich countries are mostly the ones that are small in population. As these countries have large, enormous economies in comparison to their low population.
But we can only also determine a more realistic assessment of a country's average quality of life with regard to inflation rates and price of regional raw materials and services: this measure is known as the purchasing power parity (PPP), which is almost always exhibited as US Dollars to permit comparative analysis among various nations.
Let's get started and have a look at the top 10 richest countries in the world.
Luxembourg is famously visited for its magnificent castles and gorgeous landscapes, cultural celebrations, or delicious cuisine. Or, some only establish an international bank account here by way of one of its banks but never really visit it.
However, it is a sad thing: as this is a majestic place, in the center of Europe, a small country of around 620,000 people. This country has lots to serve to its visitors and its residents. Luxembourg leverages its great resources to provide its inhabitants, by far the greatest living standards in the Eurozone, coupled with decent housing, health facilities, and a great educational system.
In the advent of the pandemic, many countries and their economies have suffered drastically.
However, Luxembourg has withstood the pandemic better than many of its neighbouring European countries, with the help of its significant testing and connection tracking measures. In 2021, the GDP of the Grand Duchy will therefore recover by 4%from 0.1.3%. In 2014 in 2020, the nation surpassed $100,000 in per capita GDP in 2014 and has never looked back since then. This could not even be modified by the outburst of coronavirus.
As per the studies, due to the prestigious, highly skilled workforce of the 'Grande Region' and the not-so-popular tax rules, Luxembourg is one of the greatest financial institutions in the world. It is a leading global investor with assets of approximately EUR4.1 billion in the investment fund business. It is also having the biggest financial centre in Europe and the largest reinsurance company in Europe. In Luxembourg, there are around 3,900 funds. As of 2018, Luxembourg had 133 banks, 40 of which are international bank branches. In total, the banks have almost EUR 760bn in assets.
When the newly independent republic of Singapore was expelled from Malaysia in 1965, the newly formed Third-World Republic was a small country without any geographical wealth and with a lot of racial problems. Moving to half a century later, Singapore now ranks among the richest nations of the world per person. because of decades of export-oriented prosperity that saw strong investments in physical and human capital and the building of a thriving business environment.
Singapore is a prosperous fiscal paradise with no tax on capital profits and dividends.
In 1965, when the city-state was autonomous, half of its population was uneducated, with essentially no mineral wealth. Singapore has become one of the world's most business-friendly sites via hard effort and clever legislation. Singapore is today a thriving centre of trade, industry, and finance. That is not to suggest that it is immune to the consequences of the global downturn: the economy collapsed a record 5.4 percent in 2020, which for the first time caused the country to recession in more than a decade.
Ireland appeared unbeatable before the pandemic. The European Union faced all sorts of difficulties, but the Irish economy continued to waver: the European Union recorded a growth of just 1.2 percent in 2019. Ireland grew its economic growth by 5.9 percent. Although the pandemic did affect its growth and expansion, it is expected to recover this year.
The Irish economy, a country with less than five million residents, was among the most devastated by the economic downturn in 2008; Ireland recovered the financial situation, raised its employment figures, andalmost doubled their GDP per capita after following several politically challenging reform measures such as a large decrease in the government's salary and a restructure for their banking system.
Ireland has a considerably smaller profit than corporations and is one of the biggest corporate tax havens around the globe.
Ireland is one of the biggest corporate tax havens globally, and here common citizens are much less advantageous than giants.
And while they are certainly in a better position as they used to be. The OECD data shows that the consumable household income per capita is actually less than the other countries; it is around 25,300 dollars a year vs. 33,600 dollars.
Furthermore, the country's unemployment rate is predicted to rise to 8.1% of its current 5.8%, with the scheduled cessation of state aid to the pandemia leaving roughly 100,000 more unemployed than before the outbreak of coronavirus.
Crisis of oversupply and demand problem of 2020, or the amplifying impact of COVID-19pandemic: The oil price has been steadily and sometimes dramatically declining since 2010. Their per capita GDP was above $143,222 in 2014, but it was "only" $97,846 a year later, and it is currently considerably lower.
Despite this, the nation's oil, gas, and petrochemical resources are so vast, and its inhabitants account to only 2.8 million, that this masterpiece of the opulent edifice, luxurious shopping centers, and excellent gastronomy has managed to dominate the country to list of the world's wealthiest nations for the past 20 years.
Even though just roughly 12% of the population is Qatari, the country, like other Gulf nations, has seen COVID-19 rapidly spread, particularly amongst poor labourers residing in cramped spaces. Despite the fact that shutdowns, travel restrictions, curfew, and security measures have been enforced several times, Qatar has one of the largest populations with covid diagnosed cases in the area.
Despite this, the economy has shown some endurance and is now expected to improve due to increased gas output and investment in preparations for the 2022 World Cup.
With a population of around 8.6 million, Switzerland is known for its generous contributions to the world, including white chocolate, swiss army knife, computer kouse, LSD, velcro, etc.
Most of the country's income comes from banking, insurance, and tourism, coupled with the export of pharma products, precious stones, metals, gems, and even machines like computers, watch, etc.
The Swiss economy is backed by a high-performance institutional structure, a stable and sustainable corporate climate, and a highly effective school system.
Switzerland is the home to most of the millionaires in the world; almost 12% of its population is a billionaire. Despite being such a rich country, Switzerland was still affected by COVID- 19, but still, in comparison to countries like Spain, Germany, France, the loss was not that much. According to the International Monetary Fund (IMF), the aspects that didn't lead to more losses in the economy include rapid and consistent policy reaction via emergency expenditure and preventative methods, as well as the Switzerland economy, with its robust government and domestic financing, strong export markets and its minimal dependency on contact requiring sectors.
The national economy of Norway has been fuelled by oil since major offshore deposits were discovered in the 1960s. As the leading manufacturer of oil in Western Europe, the nation has enjoyed growing costs for years. The costs collapsed in early 2020, the world's pandemic followed — and there was a slump in the economy. In the last half hundred years and perhaps after World War two, Norway’s economy shrank for the first time by about 2.5 percent, the highest annual deterioration.
Nevertheless, GDP growth is estimated to bounce back in 2021. In extreme cases, if crisis, Norway economy can bank on their $1.3 trillion sovereign wealth fund – the world's largest – when it comes to any economic problem. However, Norwegians recognise that tremendous responsibility is born with great richness. Unlike some other rich countries, high levels of per capita GDP actually represent the well-being of individuals as it has one of the world's lowest-income inequality gaps.
7. United States
Well, not always the smallest countries are the richest, there is an exception to this - the USA.The United States managed to reach the top 10 in a very tough 2020 also.
But during the pandemic, did Americans really get richer? Of course, there were a considerable number of people who became jobless, lost their companies, were listed in food banks, who had huge debts and other expenditures to pay. However, the upper percentile employees making more than $60,000 annually continued to uphold their jobs at home, witnessed a value rise in their investment portfolios, and received a quantitative easing check.
Coming to the super-rich went during the crisis. The aggregate fortune for them has jumped in leaps and bounds; pandemic has made them exponentially rich. The United States is one of the world's richest per capita GDP countries due to its upper hand in several cutting-edge technologies, profound financial markets, a dynamic labour market, and a robust legal system. The very same elements would strive to advance the nation over the coming years and guarantee that the nation stays among the richest in the world while providing a further push to huge economic austerity. But the political picture is violently split, debt is high, socio-economic inequities are stark, and China has been widening the gap.
8. Brunei Darussalam
1800 rooms of which 257 restrooms, a formal dining room for 6000 individuals, a mosque for almost 2000 people, a 200 polo pony air-conditioning facility, 5 swimming pools, and 18 lifts: This is the opulent abode of Hassanal Bolkiah in Brunei.
He is reported to have a wealth of around $30 billion, which is manifold and multiple times more the value of England's Queen Elizabeth—derived from the nation's vast oil and gas resources.
Bolkiah is not the most richest person in the world, but he has been one for many years and decades.
Despite his big grandeur in Brunei, starvation is the characteristic feature amid the riches of the economy and the per capita paper purchasing power of more than $50,000.
Fortunately, with a few hundred registered cases, the country was spared the worst of the COVID-19 pandemic. The global drop in oil prices was a big hit: after having recorded a peak of 13 years of economic development of 3.9 percent in 2019, GDP growth dropped to 1.2 percent in 2 years.
9. Hong Kong SAR
This particular province of China, formerly a British colony, is the entrance to the continent and the highest financial hub in Asia. Hong Kong's economy is driven by cheap taxes, lack of capital gains or charges on inherited, no importing and exporting tariff, and the complete possession of its enterprise to ex-pats without any qualification for citizenship, residence, or nationality.
As a result, this country is quite wealthy in its entirety, at 1,104 square kilometers. This does not mean that all 7.5 million residents are: there is still a small portion that is not wealthy or rich. Hong Kong competes with New York for being the world's biggest place with a population of ultra-high total wealth persons.
This means that Hong Kong enjoys high levels of independence, administrative, parliamentary, and autonomous judicial powers. The Hong Kong administrative region is an integral part of the People's Republic of China.
Also, the increasing disparity in incomes has also contributed to the political turmoil in Hong Kong since 2019, which has disturbed companies and spoiled overseas investors. The epidemic led to a 6.1 percent decrease in last year's economy, which was the most significant.
Operational excellence, rich social resources, and friendly business cultureare part of the successful quality of life of the country. Denmark, a strong sector in operations and a food supply exporter, claims a thriving renewable energy sector in order to achieve carbon-neutral by 2050 by the Administration.
In 2020 the country should continue a positive growth path, with a favourable population and good consumption and investments, despite the fact that it has knocked off the coronavirus epidemic. Higher household debt, however, is a risk.
Jantelovenm refers to the moral notion prominent in Denmark and in other northern nations, meaning "the Law of Jante." It stresses society's well-being over individualism and self-interest, making egalitarianism a major aspect of relationships and decision-making.
During the pandemic, household and public finances were less affected than nations largely dependent upon manufacturing, tourist industry, or exports of petroleum goods. The Kingdom has a modern and commercially viable service sector which also means that High employment and earnings are available to its 6 million residents, which is an effective social security system, making it one of the happy countries in the world.