Which countries of the world are the richest?
How does one measure the wealth of a nation? Is it by its size, the number of mineral resources it has, or its population?
We rank a nation’s wealth is by its GDP (Gross Domestic Product), which is a measure of the economic output of a country.
The GDP per capita is the GDP divided by the total population of the country. This translates to the average amount of economic output per person.
Countries with high GDP per capita could have as much as $90,000, while poor countries with low GDP per capita could be as low as $200.
Keep in mind that population plays a big role in this.
Top 10 Richest Countries In World History
1. Denmark:
With a population of 5.8million, Denmark as a GDP per Capita of $61, 478. This is a sweet deal for the citizens who are some of the most financially secure people in the world.
We call this economic model Flexicurity. In this model, employers can hire and fire workers as they please.
There’s no minimum wage and you can start a business within hours, it’s that easy.
In Denmark, employees can get excellent unemployment insurance packages, which is halved in six months and runs out in 2years.
There is also a social support system that makes sure everyone has the minimum necessary to live.
Denmark’s major source of income is its highly developed and diversified economy, which includes a strong services sector, and a robust manufacturing industry.
2. San Marino:
You may have not heard about this small landlocked country surrounded by Italy.
It is also possible that you have not met anyone from there because their population is a mere 34,000 people, but the cool part is they have a GDP per Capita of $61, 508.
San Marino used to be a tax haven, which makes their country a very attractive place for business investments.
In 2010, they introduced new measures such as forbidding anonymous companies and in 2017 they reduced bank secrecy, which is how they got off the list.
Their economy suffered for a short while, their GDP dropped by 30%, but they managed to bounce back by thriving manufacturing and tourism.
They also attracted legit companies with significantly lower taxes than other countries of Europe.
San Marino is the only country in the world where there are more cars than people, that’s how rich they are.
3. Brunei
Brunei has a population of 460,000 people, and GDP/Capita of $64,405.
Their citizen live simple life while the Sultan and his family manages about 90% of the country’s wealth.
The Sultan likes to enjoy the finer things in life, such as the gold Rolls Royce, and a luxurious palace, and to keep the people from revolting, they offer free education, free healthcare, subsidized funeral and cars.
In Brunei, there are twice as much cars as there are people, but there isn’t much freedom because of Islamic laws.
Brunei has the highest oil reserve per capita in the world, which is where their massive wealth comes from.
They have also diversified their economy, giving rise to a strong financial sector.
4. United States Of America:
The US has a population of over 400million and a GDP/Capita of $68,309.
They are the largest importer, and the second largest exporter of goods in the world.
The US is home to 30% of the world’s millionaires, and house 139 out of the 150 biggest companies in the world.
Amongst developed countries, its population has high income.
The richest 10% control 72% of the wealth of the country. In fact, the 3 top richest people in the country have more money than the lower half of the population.
And 15% of the population doesn’t have health insurance.
5 Norway
GDP/Capita for Norway is $69,176 with their population at 5.5million people.
This makes it one of the smaller countries in Europe by population.
The government employs 30% of the working class and charges the citizen $225 a year in order to provide free healthcare for everyone.
Their oil assets are invested in a sovereign wealth fund which the state can draw from and use freely.
This is the largest wealth fund of all with a $1.3Trillion dollars invested, which controls about 1% of the shares in the world.
Despite being very rich in oil, the Norwegian government subsidizes electric cars, and hopes to not rely on oil at all by 2025.
6. Switzerland:
They practice a system of direct democracy through which there is a referendum every 4months to vote on the main laws.
They have a population of 8.6million, and a GDP/Capita of $75,880.
Their taxes are really low, and their policies encourage business creation. Switzerland is known for its banking sector.
In fact, 28% of the world extra-territorial funds is located in Switzerland.
Their manufacturing sector also features giant companies such as Nestle, Roche and Rolex.
The population of Switzerland is ethnically diverse with people from all over the world, including German, French, and Italian immigrants.
7. Qatar
Its GDP/Capita is $97,262 with an unemployment rate of 0.1%.
Qatar became one of the richest countries in the world when they started to liquefy their gas for easy export, making oil and gas a whopping 85% of its export.
Just like Norway, Qatar has a sovereign wealth fund of $330billion, out of which $5billion is invested in Manhattan real estate in New York.
The other 15% of Qatar exports comes from petrochemical products, fertilizers and Islamic finance.
8. Ireland
This country has a GDP/Capita of $99,289, with a population of 5million people.It’s easy to tell that this country is progressing.
In 1987, it had an unemployment rate of 17%, and so to fix this, they reduced their wage taxes and simplified their labor laws.
This made it easy for multinationals to expand their headquarters across the country and employ more people.
Today multinationals employ a quarter of the nation’s work force and pay 80% of the business taxes.
By easing the cost and ease of doing business, Ireland became a hub for investments by multinationals.
You can find Apple, Facebook, Intel, Pfizer and Microsoft, and Google in Ireland, making it one of the largest exporters of pharmaceutical products, software, and medical equipment.
9. Singapore:
With a GDP/Capita of $102,742, this country has the highest percentage of millionaires.
Singapore also has the busiest port in the world, the largest ship repair center, and a major oil refinery.
There is no minimum wage, the income tax is very low, and duty is pretty much non-existence.
Singaporean government however forces its citizens to save a quarter of their salaries, this money is used to pay for medical emergencies, education and pensions.
The state also gives the equivalent of $740 to the poorest citizens to cover for education and health.
10. Luxembourg:
Luxembourg is the richest country in the world with GDP/Capita at $122,740. The major economic activities are banking and Industry, iron and steel making.
Luxembourg has the third most competitive financial sector in Europe after London and Zurich.
The minimum wage is about $2600 a month, and public transportation has been made free since 2020.
Luxembourg is also the most important investment fund center in Europe.
Their financial sector is home to more than 200 banks and over 1000 funds,
And it is the leading hub for private banking, investment banking and wealth management.
Frequently Asked Questions
1. Which country is the richest in the world?
The richest country in the world going by GDP per capita is Luxembourg.
2. Which country has the richest citizens?
With a GDP/Capita of $102,742, and the high number of millionaires (1 in 6 households), Singapore is the country with the richest citizens.
3. How can rich countries help the poor countries?
There a couple of ways rich countries can help poor countries. First and foremost, rich countries can provide loans, grants, and other forms of assistance.
Additionally, rich countries can open up their markets to goods and services from poor countries, allowing greater trade and economic development.
Conclusion On The Richest Countries In The World
The richest countries in the world, based on normal GDP per capita are Luxembourg, Qatar, Switzerland and Ireland.
These countries characterized by a highly developed economy, low unemployment, and a high standard of living.
However, it is important to note that GDP per capita is not the only indicator of economic prosperity.
Other indicators such as income inequality, poverty rates, and quality of life, should also be considered when evaluating the economic well-being of a country.