One way to rank the wealthiest countries is on the basis of their GDP (gross domestic product). Such a ranking, however, doesn’t give an idea about the earnings of the people in the county. So, a better way of ranking countries is on the basis of nominal GDP per capita. Though nominal GDP per capita doesn’t give information on the income gap between the rich and poor, many see it as a better indicator of how rich a country is. Detailed in the article are the ten richest countries in the world.
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Ten Richest Countries In The World
We have used the nominal GDP per capita data from visualcapitalist to come up with a list of the ten richest countries in the world. Following are the ten richest countries in the world:
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Australia has the 12th biggest economy on the basis of nominal GDP. The service sector dominates the economy, accounting for over 62% of the GDP and employing about 80% of the labor force in 2017. It is also among the countries with the highest total estimated value of natural resources. Australia has a population of close to 26 million people.
About 50 years ago, the country just had a small fishing industry, but in the last two decades, Qatar has transformed itself into a major oil-exporting world center. The country has among the largest natural gas reserves in the world. Qatar discovered oil in 1939 and natural gas 30 years later. The real development, however, started after it gained independence from Great Britain in 1971. It has a population of about 2.9 million people.
It is a capitalist country with free trade and an open market. Iceland’s GDP was just $12 billion in 2011, but it has grown into a $27 billion economy by 2018. The country has a population of around 350,000. After the 2008 financial crises, the tourism boom helped the country in the economic recovery. Even though it is regarded as among the most expensive countries globally, tourism in the country increased by 400% from 2010 to 2017.
Denmark has a modern mixed economy with high living standards. The service sector dominates the economy, accounting for 80% of all jobs, while manufacturing and agriculture account for 11% and 2% of the jobs, respectively. The country also depends significantly on foreign trade, and since 1990, hasn't had a current account deficit (except in 1998). Denmark has a population of more than 5 million.
Singapore is a major hub for global financial services firms. The country has a high-end infrastructure, and has significantly expanded its tourism sector. Singapore is also among the least corrupt and most pro-business countries. The country has low tax rates, and this has been the attraction for many big companies. Singapore's sovereign wealth fund, Temasek Holdings, holds stakes in many big companies.
United States ($63,051.40)
It is the biggest economy in the world, but ranks fifth in terms of per capita income. The United States has a relatively deregulated market economy. It is the most technologically powerful economy, and thus, its companies rank among the top in almost all sectors, including artificial intelligence (AI), military equipment, aerospace and more. The U.S. has abundant natural resources, advanced infrastructure and high productivity.
Norway has a high standard of living and ranks among the top on the human development index. The country has an advanced education system, universal health care and a distinct social security system. Norway is a major exporter of raw oil and gas resources. The country has a low unemployment and poverty rate, as well as one of the lowest income inequality gaps in the world.
Low corporate tax rate in the country has attracted many big companies to relocate their businesses to Ireland. This, along with a significant contribution from tourism, agriculture and manufacturing make up most of the country’s GDP. Ireland is a big exporter of metals and food products. Even though the country has a high GDP per capita, there is a considerable gap between the richest and poorest. It has a population of about 5 million.
Switzerland has a stable economy with a fixed currency value. With attractive tax rates, the country is regarded as a safe haven by investors. Moreover, low tax rates also attract investment, as well as international companies. Switzerland’s GDP gets the maximum contribution from exports, including gems, precious metals, pharmaceuticals, machinery, and more. It is also one of the top tourist destinations. Switzerland has a population of more than 8 million.
Situated at the very heart of Europe, this country is known for its castles and beautiful countryside. The country uses a majority of its wealth to ensure better housing, healthcare and education for its citizens. Luxembourg boasts of advanced infrastructure, and thus, attracts big investments from outside companies. Luxembourg’s economy largely depends on banking, steel, and industrial sectors. It has a population of more than 600,000 people.