Luxembourg’s high GDP per capita is primarily driven by its robust financial services sector, hosting numerous international banks and investment firms. The country’s favorable business environment, political stability, and advantageous tax policies have attracted foreign investments, contributing to its strong economic performance. The Cayman Islands has the seventh highest GDP per capita at $86,569. The Cayman Islands’ thriving financial services sector, including offshore banking and investment management, has been instrumental in its high GDP per capita. The absence of direct taxation and a well-regulated business environment have attracted international corporations and wealthy individuals to the country. Comparisons of national income are also frequently made on the basis of purchasing power parity (PPP), to adjust for differences in the cost of living in different countries.
- It is the third most densely populated country in the world and has a GDP per capita of $84,500.
- In practice, they are usually computed among large numbers of countries and expressed in terms of a single currency, with the US dollar (US$) most commonly used as the base or «numeraire» currency.
- Denmark has a diverse economy, with key sectors including manufacturing, services, renewable energy, and pharmaceuticals.
- Gross Domestic Product (GDP) per capita shows a country’s GDP divided by its total population.
- The value that results from this calculation is the country’s GDP per capita.
In practice, they are usually computed among large numbers of countries and expressed in terms of a single currency, with the US dollar (US$) most commonly used as the base or «numeraire» currency. Denmark is another Nordic country, which relies on a wide variety of manufactured products to earn its foreign exchange. Canada is a North American country with a large land border with the U.S., which is also its largest trading partner.
Top 10 Countries with the Highest GDP per Capita (US Dollars)*:
For our piece, we have used the real estimates since they purely measure economic output. Qatar has a GDP per capita of $66,838, primarily driven top gdp per capita countries by its vast oil and natural gas reserves. The country has successfully transformed its energy wealth into a modern and prosperous economy.
The country has attracted significant foreign direct investment, particularly from the tech industry, benefiting from its skilled workforce, favorable tax policies, and membership in the European Union. Gross Domestic Product (GDP) per capita shows a country’s GDP divided by its total population. The table below lists countries in the world ranked by GDP at Purchasing Power Parity (PPP) per capita, along with the Nominal GDP per capita. PPP takes into account the relative cost of living, rather than using only exchange rates, therefore providing a more accurate picture of the real differences in income.
List of countries by GDP (nominal) per capita
It is worth noting that GDP per capita alone doesn’t capture the full picture of a country’s economic health or societal well-being. Other factors such as income inequality, distribution of wealth, and quality of public services also play a crucial role in assessing the overall economic conditions and living standards of a nation. Such fluctuations change a country’s ranking from one year to the next, even though they often make little or no difference to the standard of living of its population. Singapore’s economic success can be attributed to its strategic location, excellent infrastructure, and pro-business policies. The country has positioned itself as a global trade and financial center, attracting foreign investments, fostering innovation, and nurturing a competitive business environment. Ireland’s GDP per capita is primarily due to its status as a global hub for technology and multinational corporations.
- Then, to make matters worse, the Russian invasion of Ukraine kicked off and disrupted the global commodities and energy market – causing both grain and oil prices to rocket to record highs.
- Such fluctuations change a country’s ranking from one year to the next, even though they often make little or no difference to the standard of living of its population.
- After rising steadily for years, government debt first ballooned to almost 100% of GDP in 2020.
- The U.S. leads the Americas in both nominal and PPP-adjusted per capita GDP.
- Qatar invests heavily in infrastructure development, tourism, finance, and real estate, positioning itself as a regional hub for business and trade.
- Additionally, Norway has a well-functioning welfare system and high standards of living, further contributing to its high GDP per capita.
The economy is highly diversified and characterized by its large consumer market, technological innovation, and significant contributions from sectors such as finance, healthcare, and technology. Its entrepreneurial culture, access to capital, and robust infrastructure contribute to its high GDP per capita. In a retreat from 2020 highs, public debt is projected to fall meaningfully compared to GDP by 2027 for advanced economies excluding America. Emerging markets are also projected to see this leverage ratio decline. As global debt continues to climb, this animated graphic shows data and projections for public debt-to-GDP ratios using the World Economic Outlook (April 2023 update) from the IMF. In Europe, the usual suspects in the world’s top 10 populate most of the region’s ranks.
Countries by GDP Per Capita
With a population of around 36,000 people, the economic output is concentrated among a relatively small number of individuals, which contributes to higher average incomes. The country’s strong economy is driven by sectors such as services, manufacturing, and high-end technology. Austria is known for its quality craftsmanship, automotive industry, tourism, and financial services. The country’s strategic location in Central Europe further enhances its economic stability and growth. Narrowing this data down to Advanced and Emerging economies, growth across the developing world will be severely hampered this year, believes the IMF. Starting from the U.S., while the American economy roared at 5.7% growth in 2021, it was expected to slow down to 1.6% last year and will continue to slow down to 1% this year.
There are several factors that contribute to Monaco’s economic performance. Firstly, Monaco is renowned as a global financial hub, attracting wealthy individuals and businesses from around the world. Its favorable tax system has made it an attractive destination for high-net-worth individuals seeking to preserve and grow their wealth. Furthermore, Monaco’s strategic location on the French Riviera has made it a popular tourist destination, attracting visitors who contribute to the local economy through spending on accommodations, dining, and entertainment. The principality’s luxury real estate market and thriving casino industry also generate substantial revenue. Monaco’s small size plays a role in its high GDP per capita as well.
A higher per capita GDP generally corresponds to higher income, consumption levels, and standards of living. However, while conditions in the developed world appear to be quite tough, the troubles pale when some of the world’s most perilous regions in terms of economic conditions are considered. Even though inflation of 6% is worrying both the population and the Fed, this appears to be almost negligible when we look at the happenings in Argentina. The country’s inflation soared past a devastating 102% in February 2023 according to data from the country’s statistics agency. For reference, the Lebanese Pound was trading at around 1,500 to the dollar just four years back. However, there is some good news, especially when it comes to inflation.
Rather, it is a measure of the relative health of that country’s overall economy and industry. GDP per capita is often considered an indicator of a country’s standard of living; however, this is inaccurate because GDP per capita is not a measure of personal income. China’s debt has also risen rapidly, and is projected to eclipse 100% by 2026. Public debt as a percentage of GDP is forecast to jump fourfold between 2005 and 2027.
Secondly, countries with smaller populations do better in the rankings. Most of the world’s biggest economies (China, India, UK, France) do not find themselves in the top 10 ranks. The island nations of Seychelles and Mauritius lead the ranks of countries by GDP per capita in both nominal and PPP categories on the African continent, also thanks to their booming tourism industries. Wealthy countries with smaller populations tend to make up the world’s richest ranks.
PPP largely removes the exchange rate problem but not others; it does not reflect the value of economic output in international trade, and it also requires more estimation than GDP per capita. On the whole, PPP per capita figures are more narrowly spread than nominal GDP per capita figures. Norway’s prosperity is primarily driven by its abundant natural resources, particularly oil and gas reserves. The country has effectively managed its petroleum wealth through a sovereign wealth fund, providing stability and economic growth. Additionally, Norway has a well-functioning welfare system and high standards of living, further contributing to its high GDP per capita.
Highest GDP Per Capita
On the other hand, many large advanced and emerging economies, including China, Brazil, Japan, and Türkiye are projected to face steeper debt. In the U.S., payments on public debt have soared to record levels due to rising interest rates. Low-income countries have smaller debt levels compared to output, which is expected to continue over the next five years.
The Eurozone will be hit more severely, with its economic growth dropping by more than 50% from an expected 3.1% in 2022 to just 0.5% this year. Within the region, Germany and Italy are expected to post an economic contraction this year, with their gross domestic products (GDPs) dropping by 0.3% and 0.2%, respectively. This prediction was accompanied by a rather dour estimate that the British won’t see their purchasing power rise to pre-pandemic levels before 2027.
Estimates from the International Monetary Fund (IMF) show that while global inflation nearly doubled from 4.7% in 2021 to 8.8% in 2022, it will drop back to 6.5% this year and 4.1% next year. Although widely considered a valuable metric, GDP can be distorted by certain economic conditions. In particular, countries whose tax laws enable them to become corporate «tax havens» often have wildly inflated GDP measurements thanks to an influx of foreign funds flowing through the country’s economy. The country has a well-diversified economy with a strong focus on technology, innovation, and research. Finland’s key sectors include telecommunications, electronics, forest industry, and clean technology.
These metrics closely resemble GDP, but are calculated slightly differently, which enables them to better account for the economic activity of tax haven countries. Thus, examining GDP per capita alongside a metric such as GNI per capita can give clearer insight into a country’s true economic health. The surge in global debt poses significant risks to government balance sheets. Here’s where it’s projected to reach over the next five years.
However, Andorra slides in at 10th in Europe’s richest countries by GDP per capita (PPP). Andorra in particular benefits from its status as a free economic zone—very low or no taxes—and being a tourism hotspot with the sector contributing 80% to its economy. Gross domestic product (GDP) is a measurement that describes the value of a geographic location’s total goods and services, and how it relates to the population of the region. GDP per capita is an evolution of this metric, and is obtained by dividing a country’s GDP by its population. The value that results from this calculation is the country’s GDP per capita.