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Luxembourg is the richest country in the world with a GDP of $91.21 billion. (Shutterstock)
When we think about the richest countries in the world, we might immediately think of big countries like the US, Russia or China. But you might be surprised to learn that the richest countries are actually some of the smallest on the map. According to Forbes India, this list, based on GDP per capita, comes from data provided by the International Monetary Fund (IMF).
Before we list out the richest countries, it is important to understand what GDP is. GDP stands for Gross Domestic Product which measures the total value of all goods and services produced in a country. To understand how rich people are in a country, we divide the country’s GDP by how many people live there which gives an idea of the general populace’s wealth.
But to get a clearer picture of a country’s real wealth, we also need to consider how much things cost in that country and how inflation affects prices. This is where Purchasing Power Parity (PPP) comes in. PPP takes into account the cost of living and inflation rates which helps us compare wealth more accurately between countries.
Luxembourg is the richest country in the world with a GDP of $91.21 billion. With a population of just 6,75,000, its share of the world’s GDP based on PPP is only 0.05%. The country is famous for its better living standards, healthcare and education. It is also one of the world’s top tourist destinations, famous for its idyllic castles, abundant greenery and picturesque canals.
Next on the list is Singapore, an island country with a GDP of $530.71 billion and a population of 5.8 million. This country, with a share of the world’s GDP (PPP) is 0.45%, remains one of the world’s biggest business hubs.
Macao is a special administrative region in China that has a GDP of $53.45 billion. It holds 0.05% of the world’s GDP (PPP). The region is known for its casinos and tourism which makes it one of the world’s top travel destinations.
Ireland’s holds the fourth position with a GDP is $560.57 billion. The country accounts for 0.35% of the world’s GDP (PPP). Many large companies like Apple, Google and Microsoft, contribute more than 50% to Ireland’s economy each year.
Qatar’s GDP of $221.41 billion supports a population of 3.07 million. The country’s share of the world’s GDP (PPP) is 0.18%. The vast reserves of oil and natural gas make Qatar one of the wealthiest countries in the world.
Norway is one of the leading oil producers in Western Europe. As per the IMF, the country has a GDP of $503.75 billion and a population of 5.51 million. It also has a huge sovereign wealth fund worth $1.3 trillion, the largest of its kind in the world, which helps it handle any future crises.
Switzerland, with a GDP of $942.27 billion and a population of 8.9 million, is famous for tourism and a strong financial sector. The country benefits from exports of valuable goods like metals, machinery and medical devices. It also has the lowest VAT (Value Added Tax) rate in Europe.
Brunei Darussalam has a GDP of $15.71 billion and a share of 0.02% of the world’s GDP based on PPP. The country’s wealth is mainly driven by its vast oil and natural gas reserves. It is ruled by Sultan Hassanal Bolkiah, one of the longest-reigning and wealthiest monarchs.
Guyana’s economic growth took off after the discovery of over 11 billion barrels of oil reserves off its coast in 2017, the largest addition to global oil reserves since the 1970s. With a population of 831,000, Guyana’s GDP is $123 billion and its share of the world’s GDP based on PPP is 0.04%.
The US with a population of 335 million, has a GDP of $29.17 trillion and holds 14.84% of the world’s GDP based on PPP. Although it ranks lower in GDP per capita compared to smaller countries, the country remains the dominant economic entity.
India, with a nominal GDP of $2,940 per capita and a GDP (PPP) of $11,940 per capita, stands at 124th place in GDP per capita rankings. In terms of GDP, India stands in fifth position following the US, China, Germany and Japan.
