Richest Countries in the world on the basis of GDP per capita (Nominal and PPP)

This article will speak about the richest countries in the world on the basis of GDP per capita.

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Introduction:

GDP – GDP, which is short for Gross Domestic Product, is the complete monetary/market value of the entire finished goods and services. These goods and services must be produced in a country within a specific period of time.

GDP is used to represent the economic situation of a country. It is an indicator for estimating the size of an economy and its rate of growth.

Generally, GDP is measured in three methods, which is by expenditure, production, or income. The inflation rate or population growth can be used to adjust the GDP while providing an extensive insight.

Although GDP has limitations, it is a key tool for guiding policymakers, investors, and businesses in order to make a strategic decision. 

GDP per capita – GDP per capita is the term for measuring the GDP per person belonging to that country’s population. 

It declares that the amount of output of a person/income of a person living in an economy can be an indicator for the average productivity or a person’s average living standards.

GDP per capita is represented in terms of Purchasing Power Parity (PPP), Nominal, or Real (inflation-adjusted).

GDP per capita (Nominal) – This is the GDP evaluated on the basis of the current market prices. This can be either in the local currencies or in US dollars as per the current currency exchange rates.

By doing so, the country’s GDP can be compared to other countries’ GDP according to their financial situation.

GDP per capita (PPP) – This GDP is evaluated on the basis of international currency (dollars) with the help of that country’s purchasing power parity. 

This method adjusts the differences in local prices as well as costs of living to compare with other countries based on their real output, income, and standard of living.

Real GDP – Real GDP is the measure of the country’s economic output while taking inflation or deflation into consideration. 

It is usually a better method of assessing GDP when compared to the nominal method and PPP method.

In simple terms, it measures the total goods and services of an economy within a given year, while considering the price levels. Real GDP is a better indicator where an economy in the business cycle.

GDP Growth Rate – GDP Growth Rate is the comparison of a country’s GDP in that respective year with the GDP in the previous year. By doing so, it can be determined how fast an economy grows. 

Economic policymakers often tend to concentrate on the GDP growth rate because it is connected with the policies’ crucial factors such as inflation and unemployment.

Top 10 richest countries in the world on the basis of their GDP per capita (nominal):

Given below are the stats that have been retrieved from the International Monetary Fund as of October 2020. 

First of all, let us have a look at the list of the top ten wealthiest countries on the basis of GDP per capita (Nominal):

  1. Luxembourg
  1. Switzerland
  1. Ireland
  1. Norway
  1. United States
  1. Singapore
  1. Denmark
  1. Iceland
  1. Qatar
  1. Australia

Now let us have a look at the economic stats of these countries and other general details. 

  1. Luxembourg:

Luxembourg stands in 1st place in the list of countries based on the GDP per capita (nominal).

GDP per capita (nominal):$109,602
GDP per capita (nominal) in 2019:$115,839
Rank in 2019: 1

The population of Luxembourg in 2021 is around 640,000. Regardless of the fact that the GDP of the country is $69.5 billion (very low compared to most countries), the nominal GDP per capita is high.

It usually costs more than €4,550 for a family of 4 people to live in Luxembourg, while a single person would need around €2,700. 

The cost of living in Luxembourg is expensive compared to 78% of cities in Western Europe and 85% of cities in the world. 

The economy of Luxembourg primarily depends on the banking & finance, steel, technology, and industrial sectors. 

Moreover, Luxembourg stands at the top when it comes to water, sanitation, healthcare, and personal rights. 

  1. Switzerland:

Switzerland is the second richest country on the basis of GDP per capita (nominal) by the end of 2020. 

GDP per capita (nominal):$81,867
GDP per capita (nominal) in 2019:$82,484
Rank in 2019: 2

The population of Switzerland is 8.715 million in 2021. Switzerland is a country that happens to pay the highest salaries to the individuals residing in it. 

Along with that, Switzerland has modernized social markets, and have some of the best systems when it comes to sanitation, water facility, electricity, education, etc.

In Switzerland, a family of four people would need somewhere around CHF 6,200, while a single person would need at least CHF 3,500. 

One of the most important things to consider is that Switzerland is the second most expensive country on the planet while being the most expensive country in Western Europe.

The crucial factors for the development of the economy in Switzerland are the Swiss Banking Industry, Tourism, Agriculture, and Watchmaking.

An interesting fact about the standard of living in Switzerland is that the richest 20% earn 5 times as much as the poorest 20% of people living there.

  1. Ireland:

Ireland is the third richest country in the world in terms of GDP per capita (nominal) by the end of 2020.

GDP per capita (nominal):$79,669
GDP per capita (nominal) in 2019:$80,504
Rank in 2019: 3

It is not just luck that made Ireland become one of the wealthiest countries in the world. Some of the contributing factors for the development of Ireland are excellent medical care, clean water, personal rights, etc.

Even though the education system of Ireland is somewhat average compared to some other countries in the world, yet, it is one of the best among other European countries.

The average needed for a family of 4 people to live in Ireland is around €4,800 and a single person would need at least €2,750 for living happily in Ireland. 

Ireland is the second most expensive country in Western Europe and is more expensive when compared to 95% of the countries in the world. 

The key business sectors that are responsible for the development of the economy in Ireland are Technology, Financial Services, Agriculture-related businesses, etc.

Ireland has the best jobs, salaries, housing, healthcare, and education among other aspects.

  1. Norway:

Based on the GDP per capita (nominal), Norway is the 4th richest country in the world by the end of 2020. 

GDP per capita (nominal):$67,989
GDP per capita (nominal) in 2019:$75,294
Rank in 2019: 5

Norway happens to be a country that is completely aware of pollution related issues and has a very amount of pollution. Along with that, this country also has very excellent medical services and support programs.

Taking these factors into consideration, we can understand why Norway was able to come in the first position when it comes to Social Progress Index rank.

Norway also has access to the best education system and scores 53.31 points out of 100 concerning the education system ranking in the world. 

When it comes to the cost of living in Norway, a family of 4 people living in Norway would need kr49,150 and a single person would need to have at least kr24,450.

Norway is the 3rd most expensive country in all of Western Europe and is expensive when compared to 93% of the countries in the world.

The best business activities of Norway that are the most beneficial for the development of its economy are oil exports and petroleum-related industries.

The standard of living in Norway is very good because it is a country with a rich economy, low unemployment rate, less population, and a high purchasing power.

  1. United States:

United States stands at the number five position on the list of the world’s richest countries based on the GDP per capita (nominal).

GDP per capita (nominal):$63,051
GDP per capita (nominal) in 2019:$65,254
Rank in 2019: 7

United States has the highest GDP in the world which consists of $20.8 trillion as of 2020. No doubt, the USA is one of the best countries with a developed economy and advanced facilities for the people living there.

The USA has the best housing, water, sanitation, healthcare, personal rights, etc. However, it lacks in certain aspects such as personal wellbeing, personal safety, and others.

In the United States, a family of 4 people would need at least $4,500 and a single person would need $2,500 to live sustainably. The cost of living in the United States is 75% expensive when compared to other countries of the world.

Some of the sectors responsible for the development of the economy in the United States are technology, aerospace, medicine, energy, transportation, telecommunications, etc.

Based on the relationship of people with the country, Americans have a higher standard of living when compared to most other countries in the world.

  1. Singapore:

Singapore is the 6th richest country in the world in terms of GDP per capita (nominal).

GDP per capita (nominal):$58,484
GDP per capita (nominal) in 2019:$65,234
Rank in 2019: 8

Singapore, because of its development in various aspects, was able to move from 8th place in 2019 to 6th place in 2020 when it comes to the list of richest countries in the world based on GDP per capita (nominal).

Based on the average income earned by the people, Singapore has an average income rank of 10 among the other countries of the world.

While being in Singapore, people should be careful about the restrictions and rules there. For instance, people who sing in public would be imposed with a fine of $10,000, 2 years imprisonment in case of selling/smuggling chewing gum, etc.

Singapore also happens to be one of the expensive countries to live in, while being expensive than 92% of the countries in the world. Not only that, but Singapore is the 2nd most expensive country to live in all of Asia.

Generally, a family consisting of 4 people would require as much as SGD 7,500 per month, while a single would need SGD 4,250 on average.

The essential sectors for the development of the economy in Singapore are exports, electronics manufacturing, financial services, imports/exports (through seaways), and others.

These sectors contribute a lot to the development of Singapore and help a lot for it to become a stable country in the world.

The standard of living is very high in Singapore and it is one of the favorite places for people to live there as expats.

  1. Denmark:

The 7th wealthiest country in the world based on GDP per capita (nominal) is Denmark.

GDP per capita (nominal):$58,439
GDP per capita (nominal) in 2019:$59,770
Rank in 2019: 10

Denmark previously used to be in the 10th position for the richest countries in the world on the basis of GDP per capita (nominal). Denmark is yet another country that is famous for the social awareness among its citizens. 

Regarding the Social Progress Index rank, Denmark is in the 4th position and has the best services related to water, sanitation, shelter, medical care, education, and others.

Among the countries of Western Europe, Denmark is 72% expensive than the remaining and it is 85% more expensive when compared to the countries in the world.

To live in Denmark, a family of 4 people would need kr32,300 and a single person would need to have at least kr16,800.

Most of the development of the economy in Denmark is based on the service-related industries, trade, and manufacturing sectors. However, a little percent depends on agriculture and fishing.

Denmark is an excellent country to live in, because of its safety, and low crime rate. Along with that, the people of Demark are known among the other countries of the world for their happy nature.

  1. Iceland:

Coming to the 8th position in our list for the richest countries based on their GDP per capita (nominal), we have Iceland.

GDP per capita (nominal):$57,189
GDP per capita (nominal) in 2019:$67,857
Rank in 2019: 6

Because of the aspects such as an excellent education system, personal rights, and other aspects, Iceland was able to have a place in our list of the richest countries based on GDP per capita (nominal).

However, in 2019, Iceland used to be in 6th place with a GDP per capita (nominal) of $67,857.

Even though an accurate estimate is not available on how much would be needed to live in Iceland, we want to give you a general understanding along with some price estimates.

For a family of 4 people, the general expenses for a month would be around kr884,100 and a single person would require around kr404,000 to live in Iceland.

The major business activities that contribute a lot to the development of the economy in Iceland are the fishing industry, tourism industry, and export industry. 

Iceland has the best employment system, environmental protection programs, social connections, good income, and other aspects that make Iceland a country having good living standards.

  1. Qatar:

Qatar is at the 9th place in the list of richest countries in the world based on GDP per capita (nominal).

GDP per capita (nominal):$52,751
GDP per capita (nominal) in 2019:$62,919
Rank in 2019: 9

Qatar is able to maintain its 9th rank in the list of countries based on GDP per capita (nominal). Qatar is a country of the Middle East, which needs no specific explanation to say that it is an oil-rich country. 

The wealthiest people of Qatar earn 13 times more than what the poorest people earn there. Qatar is the most expensive country among all of the Middle Eastern countries and is expensive when compared to 84% of the countries in the world.

A family of 4 people would need around 18,567 Qatari Riyal and a single individual would need at least 11,045 Qatari Riyal.

The major industries of Qatar are natural gas, crude oil production & refining, ammonia, petrochemicals, fertilizers, steel, cement, ship repair, etc., among other profitable industries.

Qatar is among the places in the world, where it is safe to live. However, people must get to know everything about the rules and restrictions here because the consequences for crimes in Qatar are very severe. 

  1. Australia:

Australia is the 10th wealthiest country in the world depending on the GDP per capita (nominal).

GDP per capita (nominal):$51,885
GDP per capita (nominal) in 2019:$54,348
Rank in 2019: 11

While Australia was in the 11th position in 2019 and it moved a bit forward in this race and reached the 10th rank by the end of 2020. 

Australia is known for providing the best basic medical care, water, sanitation, personal rights, communication, etc. Not only that, but Australia is also a country known as the best travel destination. 

Living in Australia is expensive than living in 88% of the countries in the world. A family of 4 people would need around AUD 6,700 per month while a single person would need at least AUD 3,750.

Mostly concentrated on the service sector for the development of the economy, Australia also involves in major industrial activities related to mining, manufacturing, and agriculture.

Australia is among the top countries in the world that have the highest standard of living. Excellent job aspects, a developed economy, and best-in-class financial services make Australia the best place to live.

Top 10 richest countries in the world on the basis of their GDP per capita (PPP):

Now let us have a look at the top ten richest countries in the world depending on their GDP per capita (PPP).

  1. Luxembourg
  1. Singapore
  1. Qatar
  1. Ireland
  1. Switzerland
  1. Norway
  1. United States
  1. Brunei Darussalam
  1. Macao SAR
  1. The United Arab Emirates

Now let us have a look at the economic stats of these countries and other general details. 

Note: To avoid repetitive content in this article, we haven’t included the general details for the countries in this list that have already been mentioned above. All the values given below are international dollars.

  1. Luxembourg:

Luxembourg is not only the richest country in the world based on GDP per capita (nominal), but it stands in first place in the list of richest countries based on GDP per capita (PPP)

GDP per capita (PPP):$112,875
GDP per capita (PPP) in 2019:$120,490
Rank in 2019: 2

Luxembourg was in the 2nd rank in the list for 2019, yet it somehow managed to improve its economy and therefore, is in the first position.

  1. Singapore:

Singapore is the 2nd richest country in the world, depending on the GDP per capita (PPP). 

GDP per capita (PPP):$95,603
GDP per capita (PPP) in 2019:$101,458
Rank in 2019: 3
  1. Qatar:

As for the 3rd richest country in the world based on GDP per capita (PPP), we have Qatar.

GDP per capita (PPP):$91,897
GDP per capita (PPP) in 2019:$95,108
Rank in 2019: 4
  1. Ireland:

The 4th richest country in the world as per the GDP per capita (PPP) is Ireland.

GDP per capita (PPP):$89,383
GDP per capita (PPP) in 2019:$91,959
Rank in 2019: 5
  1. Switzerland:

Switzerland is the 5th wealthiest country in the world based on GDP per capita (PPP). 

GDP per capita (PPP):$68,340
GDP per capita (PPP) in 2019:$72,008
Rank in 2019: 6
  1. Norway:

At the 8th position in the list of wealthiest countries in the world depending on GDP per capita (PPP), we have Norway.

GDP per capita (PPP):$64,856
GDP per capita (PPP) in 2019:$66,214
Rank in 2019: 7
  1. United States:

United States is the 7th richest country in the world based on GDP per capita (PPP).

GDP per capita (PPP):$63,051
GDP per capita (PPP) in 2019:$65,254
Rank in 2019: 8
  1. Brunei:

Brunei, which is known as ‘Negara Brunei Darussalam’ (meaning ‘Nation of Brunei, the Abode of Peace’), is the 8th richest country in the world according to its GDP per capita (PPP).

GDP per capita (PPP):$61,816
GDP per capita (PPP) in 2019:$61,033
Rank in 2019: 12

Among the countries of Southeast Asia, most are not considered safe for the people who move to live there. However, Brunei is considered to be safe among them with a very low crime rate.

However, people should be aware of the strict rules and regulations of Brunei as they are quite severe in some aspects (such as alcohol).

A family of 4 people would require B$ 4,600 and a single individual would need around B$ 2,300 to live in Brunei comfortably. 

The most profitable industries that are responsible for the development of the economy in Brunei are crude oil and natural gas. 

  1. Macau SAR:

Officially known by the name of Macau Special Administrative Region, and also called Macao, Macau is at the 9th place in the list of richest countries based on the GDP per capita (PPP).

GDP per capita (PPP):$58,931
GDP per capita (PPP) in 2019:$121,764
Rank in 2019: 1

Macau was actually in first place in 2019 before it dropped down to the 9th position in 2020. 

As far as we know, the aptest reason for this would generally be because of the spread of COVID-19, and as Macau being just 40 miles away from Hong Kong, it was impacted a lot.

Having a lot of business/job opportunities, Macau is a place crowded with lots of people. 

Macao’s currency is Pataca and a family of 4 people would need 34,100 Pataca per month to live sustainably. On the other hand, an individual would need around 19,700 Pataca per month to live single.

Tourism is one of the most contributing industrial sectors of Macau, and apart from that, gambling also plays an active role since the 19th century when it was made legal.

In simple, Macau is usually referred to as the Las Vegas of China. Even though the cost of living in Macau is quite extreme, the average salaries are also high.

  1. United Arab Emirates:

United Arab Emirates is the 10th most-richest country in the world in terms of GDP per capita (PPP).

GDP per capita (PPP):$58,466
GDP per capita (PPP) in 2019:$63,590
Rank in 2019: 9

It is a country consisting of 7 states, among which Dubai and Abu Dhabi are most prominently known by people all over the world. 

UAE is expensive than 78% of the countries in the Middle East and expensive compared to 68% of the countries all over the world. 

To live in UAE, a family of 4 people would need around 15,800 Dirham and a single person would need at least 9,000 Dirham. 

The profitable industrial sectors responsible for the growth of the economy in UAE are oil, natural gas, exports (oil), etc. People living in UAE, especially in Abu Dhabi, are known to have very high salaries. 

Not only that, but UAE is the country where most people tend to have expensive sports cars, big cats as pets, and luxurious villas. This is enough to state their standard of living in comparison with other countries of the world.

Bottom Line:

By the time you read this article, these stats might’ve updated or changed. However, by the time of writing this article, this data is accurate as obtained from the information provided by IMF.

That being said, if you are looking for a financial expert to help you with financial planning or guide you in the wealth management process by helping with your investments, please feel free to contact us

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