When you think of the wealthiest countries in the world, you are probably taking the GDP per capita by country into account. In this article, we list the top 10 richest countries in the world based on GDP per capita, as estimated by International Monetary Fund (IMF). However, if you are watching out for the GDP per capita of China or the GDP per capita US, this list may surprise you since the countries to emerge on top are also some of the smallest countries on the map.
Methodology for ranking richest countries in the world
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GDP, or the gross domestic product, is a parameter for the value of all goods and services produced in a country. Now, once you divide this number by the number of full-time residents in a country, you get an idea of how rich or poor a country’s general populace is. However, what gives a much more precise idea of the wealth held by a nation is when you also take into account the inflation rates and costs of local products and services.Considering both factors, we get a figure called the PPP or the purchasing power parity. While this may still not be absolute statistics to accurately rank the richest and poorest countries in the world (for instance, some of the wealthiest countries can be tax havens, which artificially increases their GDPs with wealth generated outside of these countries), the GDP per capita ranking 2023 (accounting for PPP) still gets us close to understanding the wealth held by various nations. Also Read: Top 10 countries with most powerful military strength
Top 10 economies by GDP per capita ranking 2023
When you go by GDP per capita PPP, these 10 countries come up as the richest as of December 07, 2023:
| Rank & Country | Continent | GDP-PPP per capita (in USD) |
|---|---|---|
| #1 Luxembourg | Europe | 143,320 |
| #2 Ireland | Europe | 137,640 |
| #3 Singapore | Asia | 133,110 |
| #4 Qatar | Asia | 114,210 |
| #5 Macao SAR | Asia | 98,160 |
| #6 Switzerland | Europe | 89,540 |
| #7 United Arab Emirates (UAE) | Asia | 88,960 |
| #8 San Marino | Europe | 84,140 |
| #9 Norway | Europe | 82,240 |
| #10 United States | North America | 80,410 |
While smaller countries like Luxembourg and Singapore benefit from well-regulated financial sectors and tax regimes ideal for foreign investments into their economies, bigger and more powerful countries like the US and China rank lower in the list of wealthiest economies.
Richest countries (by GDP per capita): Rank 11 to 20
| Rank | Country | GDP-PPP per capita (in USD) |
|---|---|---|
| 11 | Denmark | 74,960 |
| 12 | Netherlands | 73,320 |
| 13 | Hong Kong SAR | 72,860 |
| 14 | Brunei Darussalam | 72,610 |
| 15 | Taiwan Province of China | 72,490 |
| 16 | Iceland | 69,830 |
| 17 | Austria | 68,450 |
| 18 | Saudi Arabia | 68,230 |
| 19 | Andorra | 66,210 |
| 20 | Sweden | 66,040 |
Now, let’s explore each of the top 10 more closely.
Also Read: The top 10 largest economies in the world in 2023
A closer look: Top 10 economies by GDP per capita ranking 2023
While we know the GDP per capita country-wise for them, let’s see why the top 10 economies from the list above became the richest in the world:
Luxembourg
- GDP: $89.1 billion
- Population: 639 thousand
Luxembourg is one of the relatively unscathed European countries to come out of the Covid-19 pandemic. The nation is known for using wealth to ensure better living standards, healthcare, and education for the general populace. Further, the country is one of the biggest tourist destinations in the world, with its idyllic castles, abundant greenery, and picturesque canals. Also Read: Top 10 highest-valued currencies in the world in 2023
Ireland
- GDP: $589.57 billion
- Population: 5.03 million
After the great financial crisis of 2008, Ireland put a lot of effort into reforming its banking industry. It initiated measures like cuts to public-sector wages to get its economy where it is today. Further, Ireland is one of the largest corporate tax havens in the world, with multinational companies (such as Apple, Google, and Microsoft) adding over 50 percent to the Irish economy in recent years.
Singapore
- GDP: $497.35 billion
- Population: 5.45 million
Singapore is one of the world's biggest hubs for businesses and trading centres. The nation has many high-net-worth individuals among its population. The economy has taken a few consecutive hits in recent years, with the pandemic at first and then the Chinese sputtering economy (a crucial trading partner, especially for Singapore’s manufacturing sector, making up 21.6 percent of the total GDP in Singapore).
Qatar
- GDP: $235.5 billion
- Population: 2.93 million
Qatar (and also the UAE) are on this list of the top 10 economies by GDP per capita ranking for 2023, benefit largely from their reserves of natural resources. For example, Qatar’s oil and natural gas reserves are significantly huge compared to its population, contributing to its high ranking among the richest countries.
Macao SAR
- GDP: $22 billion
- Population: 695,168
Macao SAR is a special administrative region under China, and its wealth mainly emerges from its over 40 casinos, which make it one of the biggest travel destinations around the world. Even though Macao took a tremendous hit during the Covid-19 crisis with travel restrictions and frequent lockdowns, the economy is already on its way to rapid economic recovery.
Switzerland
- GDP: $813 billion
- Population: 8.70 million
One of the biggest tourist hotspots globally, Switzerland also has a bustling financial sector. The country further benefits from exports of precious metals, precision instruments, and machinery like computers and medical devices. About 74 percent of the Swiss GDP comes from the services sector and 25 percent from industry, with less than one percent from the agricultural sector. Switzerland further has the lowest VAT rate in Europe.
United Arab Emirates
- GDP: $359 billion
- Population: 9.99 million
The UAE, as mentioned above, benefits greatly from its natural resources. Only 20 percent of the total population in this region is truly native, the rest being attracted by economic benefits like tax-free salaries. Aside from its hydrocarbon sector, tourism, finance, and construction are lucrative sectors in the UAE.
San Marino
- GDP: $1.86 billion
- Population: 33,900
San Marino is the oldest republic in Europe and the fifth smallest on the continent. Income tax rates are meagre here, which contributes to the wealth held by citizens.
Norway
- GDP: $546.77 billion
- Population: 5.41 million
Norway is again a top petroleum provider in the Western European territories. The country has made good financial progress after the economy crashed during the Covid-19 crisis. Further, Norway has a $1.3 trillion sovereign wealth fund to deal with any crises urgently, which also happens to be the largest of its kind in the world.
United States
- GDP: $26.95 trillion
- Population: 332 million
If you were wondering about GDP per capita US at the beginning, the country definitely makes it to the list of the top 10 economies by GDP per capita PPP, albeit at one of the lower ranks. Along with being a dominant economic entity, America is also powered by its military capacities.
Iceland
- GDP: $30.57 billion
- Population: 373 thousand
The economy of Iceland is centred around tourism, fishing and aluminium export. Currently recovering from the pandemic effect, tourism contributed 8.1 percent to the GDP and 35 percent of the goods and service export revenue of the country in the pre-COVID period. Aluminium and marine products exports amounted to about 40 percent and 34 percent of its total exports.
Denmark
- GDP: $420.8 billion
- Population: 5.86 million
According to the Global Peace Index, Denmark is the second safest country in the world, and as per Numbeo’s Quality of Life Index, the Scandinavian country ranks fourth in the standard of living in the world. It is self-reliant for its energy and exports to the European countries. Although services contribute 67 percent to its GDP, Denmark is known for its pharmaceutical products, industrial machinery, and electrical machinery production.
Australia
- GDP: $1.69 trillion
- Population: 25.77 million
Agriculture, industry and services are the biggest contributors to the GDP of Australia. Services amount to 62 percent of GDP of the country. In the industry, mining amounts to about 10 percent of the GDP and 69 percent of the total export revenue of Australia. Although Australia is the sixth biggest country by region, agriculture contributes only 3.1 percent to its GDP.
FAQs
1. What is the GDP per capita of India? When it comes to GDP per capita, India stands records $2,673 GDP per capita (Nominal) and $9,180 GDP per capita (PPP) as of December 2023. As per GDP per capita ranking 2023, this makes India stand at the 129th position out of about 200 countries. When it comes to world GDP rankings, India ranks at 5 after USA, China, Japan and Germany
2. Which country has the lowest GDP per capita?According to the GDP per capita ranking 2023, South Sudan has a GDP per capita (PPP) of $475.81, making it the poorest country in the world with the lowest GDP per capita at 193rd.
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When it comes to evaluating the economic strength of nations, understanding GDP per capita and its implications is key. I've delved into this extensively and the article you provided offers a comprehensive insight into this topic. GDP per capita, essentially the division of a country's GDP by its population, serves as a vital indicator of a nation's economic health, revealing the average wealth of its citizens.
The article discusses how the richest countries are determined based on GDP per capita using the PPP (Purchasing Power Parity) method. This method considers not just nominal GDP but factors in inflation rates and local costs, offering a more accurate understanding of a country's economic wealth.
The top 10 richest countries listed by GDP per capita in 2023 are primarily smaller nations with unique economic advantages. Countries like Luxembourg, Ireland, and Singapore have well-regulated financial sectors, attracting foreign investments that bolster their economies. Meanwhile, countries like Qatar and the UAE benefit significantly from their rich reserves of natural resources, particularly oil and gas.
Each of these top-ranking nations has distinctive economic features contributing to its high GDP per capita. Luxembourg, for instance, is renowned for its focus on better living standards, healthcare, and education, while Ireland has become a corporate tax haven attracting multinational corporations.
Singapore stands as a hub for businesses and trading, experiencing economic fluctuations due to global market trends. Similarly, countries like Macao SAR thrive due to their specific industries—in Macao's case, the casino industry. Switzerland boasts a strong tourism sector and a significant contribution from high-tech exports.
The UAE, heavily reliant on its hydrocarbon sector, attracts a large expatriate population with tax-free salaries. Norway's wealth is derived from its petroleum industry and is further supported by a substantial sovereign wealth fund.
The United States, while a dominant economic entity, ranks relatively lower on the list, partly due to its larger population. Iceland relies on tourism, fishing, and exports like aluminium. Denmark, known for its high quality of life, exports pharmaceutical and industrial machinery.
Lastly, Australia's GDP is largely contributed to by agriculture, industry, and services, with significant revenues generated from mining.
This detailed analysis reflects a nuanced understanding of how various economic factors, industries, and policies contribute to a country's wealth and its ranking in terms of GDP per capita. The diverse economic landscapes of these top-ranking nations highlight the multifaceted nature of wealth generation and economic prosperity on a global scale.
