GDP, or Gross Domestic Product, is a measure of a country’s wealth derived from a variety of sources such as export revenues, incomes, consumption, and the value of goods and services produced in a given year. GDP’s popularity in illustrating and comparing wealth is due to the fact that it establishes a benchmark based on these measurements and uses the same criteria across the board. The GDP per capita is the country’s wealth divided by the number of people living there, and it’s a useful metric for determining a country’s quality of life. When the GDP per capita is high, it frequently indicates that the country’s citizens are wealthy and prosperous.
Here is a list of the world’s 15 wealthiest countries, ranked by their GDP per capita in Purchasing Power Parity (PPP). PPP is a prominent macroeconomic indicator that compares the currencies of different nations by the cost of a “basket of commodities,” allowing for a more direct comparison of economic production and living standards.
1. Luxembourg
Luxembourg is the world’s richest country, with high income levels and a low unemployment rate. Its wealth is also relatively stable, with an inflation rate of barely 1.1 percent. According to the World Economic Forum, the large number of people working in this small, landlocked country while residing in neighboring western European countries is the primary reason for Luxembourg’s high GDP. The modern infrastructure and high labor market values encourage investment and replication of large overseas companies.
2. Singapore
Despite the lack of natural resources on which to construct their economy, the hardworking and ingenious Singaporeans have transformed their country into the world’s second richest. The economy is fueled by its status as a worldwide financial services hub. Manufacturing, services, transportation engineering, and logistics jobs pay highly, and the country’s principal exports include electronics, biotechnology, and chemicals.
3. Qatar
The once-sleeping peninsula off Saudi Arabia’s eastern coast has transformed into a significant oil-exporting world center in the last two decades, with only a small fishing industry and almost no schools. Qatar began substantial natural gas shipments to Japan and Spain in 1997, then expanded to additional nations in the early 2000s. After fifteen years and 14 natural gas plants, the country’s GDP has risen from $30 billion to more than $200 billion. Qatar, behind Russia and Iran, has the world’s largest natural gas reserves, with about 900 trillion cubic feet, accounting for 60 percent of the country’s total GDP.
4. Ireland
Low corporate taxes continue to entice numerous multibillion-dollar corporations to relocate and expand their operations in Ireland, contributing to the country’s GDP and high level of living. Despite high earnings, citizens’ income per capita has grown at a considerably slower rate than the country’s overall GDP. Others, however, admire the country’s stability and ongoing wealth gains from tourism, agriculture, and manufacturing.
5. Switzerland
Switzerland, one of the happiest and healthiest countries on the planet, is home to German, French, and Italian-speaking residents who have coexisted happily and prospered for over 800 years. Despite the country’s high cost of living, pricey goods and services, and the Swiss Frank’s extremely high value in relation to other currencies, people flock to the country for business or tourism. Switzerland is considered highly by investors looking for a secure haven for extremely profitable endeavors due to its steady economy and fixed currency value. Tax incentives attract investment, and foreign corporations strive to expand their operations in Switzerland.
