Last updated on 31 de March de 2023
What are the top 10 richest countries in the world? This is what we will answer in this post, focusing on what these countries do well
Content
Introduction
Determining whether a country is rich or not is no easy task. There are many important variables, and such a decision should not be based on a single economic indicator.
Nonetheless, if we are interested in finding out which are the richest countries in the world, we need a standardized way to assess that.
With that in mind, we will talk about the 10 richest countries in the world based on their real GDP per capita.
Real GDP per capita is a metric that indicates how much economic value a country is able to product over the course of a year, for every person living in the country. We call it real because it assumes prices are the same in all countries, which means we only focus on actual economic output produced and not necessarily on the price at which it was accounted for.
The GDP figures we will focus on come from the International Monetary Fund and correspond to its macroeconomic estimates for the year 2021.
Something important to mention about our analysis of the 10 richest countries in the world is that we will exclude certain types of countries and territories from our ranking.
On the one hand, we will only consider sovereign countries and not territories dependent on other states. This excludes certain very prosperous jurisdictions such as Hong Kong, Macau or the Cayman Islands.
On the other hand, we will also exclude those countries with less than one million people. I know it may seem unfair, but it will keep our ranking cleaner and more relevant.
That means that some of the richest countries in the world will not be included in our ranking: Liechtenstein, Luxembourg, San Marino or Brunei, to name a few.
We begin our journey in Southeast Asia:
1) Singapore
If there is an Asian country that stands out in when it comes to its prosperity, it is undoubtedly Singapore. With about 6 million inhabitants, it has become one of the main financial centers on the planet and one of the most stable countries in the world.
Its real GDP per capita is close to US$103,000. And its economic growth continues year after year.
Additionally, Singapore could gain even more relevance over the next few decades if Hong Kong continues to move away from its traditional role as an international business center and becomes a mere province of China.
2) Ireland
In second place we have Ireland, one of the richest countries in Europe. With about 5 million people, Ireland is today home to numerous multinationals and attracts talent from all over the world.
It is one of the countries with the greatest economic freedom, offers a very attractive tax regime for corporation and is the only English-speaking country in the European Union.
Thanks to this, and a real GDP per capita of more than $99,000 per year, Ireland is one of the most attractive jurisdiction for expats.
3) Qatar
As expected, the Middle East, with its vast fossil fuel reserves, is also represented in the ranking of the richest countries in the world. After all, the global is still heavily dependent on oil and gas to function.
On top of its energy reserves, the Qatari government has spent the last few decades investing most of the revenue from oil and natural gas exports in developing the country’s infrastructure and economy.
The objective is clear: to make Qatar one of the most prosperous countries on the planet and not have to depend on those exports forever.
Its real GDP per capita for 2021, which obviously includes oil industry revenues, exceeds $97,000.
4) Switzerland
Switzerland is often associated with wealth and stability. With a very high level of economic development, an enviable standard of living and a haven for investors from all over the world, the small Central European country is truly unique.
With a real GDP per capita of $76,000 per year, it enters our ranking. Due to the high cost of living in Switzerland, if we were to use the nominal GDP per capita, it would rank much higher than Ireland.
Switzerland, with its almost 9 million people, stands out in multiple sectors of the economy: finance, pharmaceutical, engineering, watches, luxury tourism, and even food with its cheese and chocolate.
5) Norway
The Scandinavian country is one of the richest in the world, thanks to both its advanced economy and abundant exports of oil and natural gas.
With its 5.5 million inhabitants and a real GDP per capita of $69,000 per year, Norway also has one of the largest sovereign wealth funds on the planet. In other words: a massive amount of accumulated wealth. This will guarantee a high standard of living for its citizens in the decades to come.
6) United States
In sixth position we have the United Stated of America, thanks to a real GDP per capita in excess of $68,000 and a population of 330 million people.
Although the United States is often considered the largest economy in the world, if we want to be consistent and continue to use the real GDP, China overtook the US a few years ago. If we focus on the real GDP, however, the United States continues to be number one.
The United States has many challenges ahead, but also numerous strengths, including its technological development, leadership in the financial sector, natural resources, and one of the best demographics in the developed world, much better than China’s.
7) Denmark
Scandinavia manages to add another country to our ranking. Denmark, a with its 5 million people, has a highly developed economy. Thanks to that it enjoys a real GDP per capita of $61,000 per year.
Unlike Norway, Denmark is a country with scarce natural resources. And, despite its high level of taxation, it shows what can be achieved when entrepreneurship and wealth creation are encouraged.
8) Netherlands
The Netherlands, the cradle of financial capitalism, is also in the top 10 of most prosperous countries on the planet.
Considered a medium-sized country, with its 17 million inhabitants and a real GDP per capita above $60,000, the Netherlands is home to numerous multinational.
It is also the country with the healthiest public finances in the Euro zone, even though most investors think that is Germany.
9) United Arab Emirates
In ninth position we have another country in the Middle East: The United Arab Emirates. It has about 10 million people and world cities like Dubai and Abu Dhabi.
The UAE also possesses abundant reserves of oil and natural gas, which represent a very important source of income and economic activity. However, of all countries on the Arabian Peninsula, the UAE is the one that has managed to diversify its economy the most.
In fact, more than 90% of its population are foreigners, which proves the country’s capacity to attract talent from all over the world. As a result, its real GDP per capita is close to $60,000.
10) Taiwan
To finish off our ranking of top 10 richest countries in the world, we will talk about Taiwan and its 24 million inhabitants.
The Asian country does not have any natural resources. But it is one of the most important industrial powers in the region. In fact, Taiwan dominates the semiconductor manufacturing sector, which is crucial for the production of electronic products and cars.
Its real GDP per capita is above $59,000 per year. And despite its high level of economic development, Taiwan continues to achieve remarkable growth rates year after year.
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And if you are curious to know which countries have no minimum wage but still manage to be highly prosperous, check out this link:
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