Income and purchasing power
Earned capital is a figure measured and published annually by most countries. It is the gross domestic product, the sum of all domestically generated income. If you convert this income to the number of inhabitants, you get a value that is hardly comparable. This is because income is not measurable over different countries if the money cannot be used to buy the same things.
An income can, therefore, only be compared if the respective countries' price structure is considered. A rented apartment for $500 per month may be standard in many countries, but in a poor developing country, you can purchase half a palace for the same money but buy a sparse little room, at best, in a rich country like Singapore. If we now adjust incomes for purchasing power, we obtain an internationally comparable fictitious currency: the PPP dollar, which stands for Purchasing Power Parity.
The calculations in this table are based on data from 2021. Evaluations for later years are expected in the first months of the following year when the economic data have been collected and published.
Wealth in small countries
It is unsurprising that so many small countries are in the top ranks. The top 20 richest countries include 15 countries with fewer than 10 million inhabitants. Most small countries are not internationally-positioned industrial nations, but generate most of their money from financial products. For example, Qatar and the Arab Emirates sit on huge oil reserves. In Europe, Luxembourg and Ireland are known for providing safe and tax-efficient homes for global players, such as Amazon, Apple, Google, and many others. Many of the countries ranked highly here are also considered tax havens.
At the same time, many small states are much less expensive to supply to the population because transport routes or cables are quickly laid. Providing a country like Luxembourg with nationwide high-speed Internet is completely different than in the US or Australia.
From this point of view, the fantastic rating of the USA (eleventh place) is surprising, but Germany (19th) and Australia (21st) are also well placed.
Macau, Las Vegas of the East
Macau is an exception. There is no oil, and financial products are not a focus of the economy. The country consists of two small islands that, together, are just half the size of Manhattan. Instead, dozens of huge casinos are spread out here, making many times the revenue of Las Vegas. Since gambling is banned in China and Hong Kong, some 3 million tourists flock to the small country monthly.
In 2020, the gross domestic product in Macau dropped drastically. Due to the travel restrictions attributable to Covid19, hardly any tourists came to the country. Of the previous 55.20 billion USD, only 25.46 billion USD remained in 2020.
* The marked countries are not independent and sovereign states, but dependent territories of other states. Cf. also our article What is a country?
FAQs
In the world, the poorest countries are mostly located in Africa and Asia, with Burundi being the poorest country followed by Somalia, Mozambique, Central African Republic, and Madagascar.
Which is the top 10 richest country in the world? ›
List of Top 10 Richest Countries in the World by GDP
| S. NO. | Country | GDP (in USD) |
|---|
| 1. | USA | $26,854 B |
| 2. | China | $19,374 B |
| 3. | Japan | $4,410 B |
| 4. | Germany | $4,309 B |
6 more rows14 hours ago
Countries Ranked Top 20 in 2023
| Rank | Country/ Territory | GDP Per Capita ($) |
|---|
| 1 | Luxembourg | 146,260 |
| 2 | Singapore | 140,280 |
| 3 | Ireland | 139,840 |
| 4 | Qatar | 123,040 |
16 more rowsThe 50 richest countries in the world
| Rank | Country | Adjusted GDP/capita |
|---|
| 1 | Luxembourg | 142,214 $ |
| 2 | Singapore | 127,565 $ |
| 3 | Ireland | 126,905 $ |
| 4 | Norway | 114,899 $ |
46 more rowsIn the world, the poorest countries are mostly located in Africa and Asia, with Burundi being the poorest country followed by Somalia, Mozambique, Central African Republic, and Madagascar.
Why is USA so rich? ›
The American economy is fueled by high productivity, transportation infrastructure, and extensive natural resources. Americans have the highest average household and employee income among OECD member states.
Is China richer than the US? ›
The United States is the richest country in the world with the highest GDP, as of 2021. China is the second richest country in the world with a $17.734 trillion GDP.
Which country has most billionaires? ›
Here are the countries with the most billionaires, and how many billionaires they actually have:
- United States: 955.
- China: 357.
- Germany: 173.
- United Kingdom: 114.
- India: 113.
With an overall net worth of $145.8 trillion and a GDP of $25.46 trillion, the US is the number one richest country in the world.
Mexico has the 11th to 13th richest economy in the world and ranks 4th with most number of poor among richest economies. Mexico is the 10th to 13th country with the most number of poor in the world.
What is the most powerful country in the world? ›
#1.
The United States is the most powerful country in the world. Its capital is Washington, DC. The country has the highest GDP of $23 trillion. Also known as the USA, it has 50 states and a population of 331,893,745.
Who has the strongest economy in the world 2023? ›
The United States of America
The United States upholds its status as the major global economy and richest country, steadfastly preserving its pinnacle position from 1960 to 2023. Its economy boasts remarkable diversity, propelled by important sectors, including services, manufacturing, finance, and technology.
Which country is rich than USA? ›
Which is the richest country in the world 2021? China is the richest country in the world. It has recently surpassed the United States as the richest country in the world.
Which country has the best economy? ›
Who will be the richest country in 2050? ›
As a result, six of the seven largest economies in the world are projected to be emerging economies in 2050 led by China (1st), India (2nd) and Indonesia (4th) The US could be down to third place in the global GDP rankings while the EU27's share of world GDP could fall below 10% by 2050.
Is America the richest country in the world? ›
Yes, America is the richest country in the world, with an overall net worth of $145.8 trillion and a GDP of $25.46 trillion. America has been the richest country in the world for over 60 years.
Which most powerful country? ›
The United States is the most powerful country in the world. Its capital is Washington, DC. The country has the highest GDP of $23 trillion. Also known as the USA, it has 50 states and a population of 331,893,745.
What is the top 50 richest country? ›
Top 50 Richest Countries in the World 2023 – Money Talks!
| Rank | Country | Adjusted GDP/capita |
|---|
| 1 | Luxembourg | 142,214 $ |
| 2 | Singapore | 127,565 $ |
| 3 | Ireland | 126,905 $ |
| 4 | Norway | 114,899 $ |
46 more rowsJul 31, 2023
Macau is an exception. There is no oil, and financial products are not a focus of the economy. The country consists of two small islands that, together, are just half the size of Manhattan. Instead, dozens of huge casinos are spread out here, making many times the revenue of Las Vegas. Since gambling is banned in China and Hong Kong, some 3 million tourists flock to the small country monthly. 