The global economic landscape is dynamic and constantly changing, a tapestry sewn with threads of prosperity, adversity, and resilience. A key indicator for understanding the economic wealth of nations is measured by Gross Domestic Product per capita or the average income generated per person. The following analysis considers the top 10 countries ranked by their GDP per capita at purchasing power parity in 2020 and provides an overview of the main drivers of their economies, challenges, and elements that have contributed to their astonishing wealth.
10. Norway/$82,831.78 GDP per Capita (PPP)
Norway, a major oil producer, experienced a significant economic downturn in 2020 due to plummeting oil prices and the global pandemic. Despite this initial shock, the Norwegian economy has gradually recovered, aided by its substantial sovereign wealth fund. While the pandemic temporarily impacted the country’s GDP and currency, it did not significantly diminish the overall economic well-being of Norwegians.
9. United States/$85,372.69 GDP per Capita (PPP)
Did we mention that the smallest are also the wealthiest? It certainly is not in the case of the United States, which spent the best part of the past 20 years slightly above tenth place before making its maiden appearance in the top 10 list in 2020.
This was the outcome, at least in the short term, of pandemic-related socio-economic policies that pushed up incomes and spending, with falling energy prices shaving several spots off the rankings of petroleum-based economies like the United Arab Emirates, Qatar, and Norway, while dropping Brunei out of the top 10.
Besides recording the smallest recession in history in early 2020, which lasted a record two months, the US economy is growing at a very fast pace.
8.San Marino🇸🇲/$86,988.99 per Capita (PPP)
Small San Marino is the fifth-smallest nation on Earth and the oldest republic in Europe. Despite having only 34,000 residents, it has some of the richest people on the planet. The extremely low income tax rates—roughly one-third of the EU average—help. However, San Marino is making efforts to align its fiscal rules and regulations with international norms including those of the European Union (EU).
7. Switzerland/91,932 GDP-PPP per capita ($)
Switzerland is a small country with only about 8.8 million people. That population is the most well-off in per capita terms. The country depends on a few industries to support such wealth: banking, insurance, tourism, and exports of highly valued equipment, watches, and medications.
Even Switzerland has had to face some hard times within the last few years: the influenza, the conflict in the Ukraine, or the near-collapse of Credit Suisse. Such cases questioned the position of the country as a safe banking heaven and showed its vulnerability to global economic winds.
6.United Arab Emirates/96,846 GDP-PPP per capita ($)
The UAE was dependent on agriculture and fishing, then it became a wealthy nation upon discovering oil. Nowadays, the country has transformed into a mixed economy with successful businesses like tourism, construction, and finance. This nation remains in the top 10 richest countries due to its strong resilience and continued dependence on fossil fuels amidst pandemic challenges.
5. Qatar/112,283 GDP-PPP per capita ($)
Though tiny, with a major reserve of oil and gas, Qatar has kept its foothold among the wealthiest countries of the world continuously for twenty years. Despite fluctuations in the price of oil, not to mention a pandemic and a war in Ukraine, the economy of Qatar had remained relatively resilient.
The economic progress of the country has been driven both by natural resources and also by its capability to adapt to different conditions. Qatar, however, has faced some obstacles that affect its social inequality and the wellbeing of its migrant population.
4. Singapore /133,737 GDP-PPP per capita ($)
Set amidst a broad business-friendly environment, Singapore has emerged as a favorite residence for many wealthy individuals seeking tax advantages. These elements include its strategic location, an efficient government, and quality human resources.
Although Singapore’s economy has always shown resilience, it has taken its own share of beating in recent years with the global pandemic and the slowing Chinese economy, its largest trading partner. This trend has now begun to affect Singapore’s manufacturing sector and to slow down its economy
3.Ireland /133,895 GDP-PPP per capita ($)
Ireland is a small economy that faced the worst of its economic times during the financial crisis of 2008-9 but recovered only due to reforms along with more and more corporate investments. While Ireland has successfully exploited its low corporate tax rate to attract multinational corporations, this process of attracting multinational corporations led to concentrating wealth in its economy.
Even while Ireland has regained economic health, it still remains behind the average of EU countries in terms of national household income, having one of the widest gaps between rich and poor. This is a sure indication that the low corporate tax rate operating in Ireland does not translate into evenly distributed economic benefits among the people.
2. Macoa SAR/134,141 GDP-PPP per capita ($)
A few years ago, many were betting that Asia’s Las Vegas was bound to become the world’s richest country, but it ran in some difficulties. Following the liberalization of the gambling sector in 2001, this special administrative area of the People’s Republic of China—once a Portuguese colony—saw an astonishing rise in its income. This small peninsula just south of Hong Kong turned into an ATM with over 700,000 and more than 40 casinos scattered over an area of about 30 square kilometers.
1.Luxembourg /143,743 GDP-PPP per capita ($)
With a GDP per capita of more than 1, Luxembourg is far ahead of the others. The rate is five times higher than that of the US.
Ireland and Macao SAR are adjacent countries with highly developed economies that depend on Ireland’s financial sector and Macao SAR’s tourism industry.
Despite having the highest GDP in the world overall, the United States of America has the ninth-highest GDP per capita, indicating that its population is substantial.
Examples of this are Qatar and San Marino, which are very small nations with significant financial and/or natural resource industries and high per capita incomes.
Analyzing the GDP per capita in comparison with other economic parameters would provide a deeper understanding of a country’s economic status. It has shown the inequality in the distribution of income, the influence of the size of the population, and the relative performance of alternative systems. With these considerations, policy planners will then be guided accordingly toward more meaningful economic policy formulations leading toward sustainable development.
