According to Forbes, which based its rankings on estimates from the International Monetary Fund (IMF), the top ten richest countries in terms of GDP per capita have been listed. European countries have shown impressive performance in this ranking, with the United States also making it to the top ten. Taiwan has also made its mark, securing a spot in the top twenty.
Gross Domestic Product (GDP) measures the total value of goods and services produced within a country. By dividing this number by the population, we can understand the wealth held by each individual in a country. However, a more precise measure of a country’s wealth per capita takes into account inflation rates and the cost of goods and services locally, known as Purchasing Power Parity (PPP).
While some wealthy countries may serve as tax havens, artificially inflating their GDP through external wealth, considering the PPP-adjusted GDP per capita rankings can give a more accurate picture of the wealth held by the citizens of each country.
As of October 2024, Luxembourg, with a robust financial sector, leads the pack with a GDP-PPP of $143,740 per capita, ranking first. This small European country has leveraged its wealth to ensure its citizens enjoy a higher standard of living, healthcare, and education. Additionally, Luxembourg is one of the world’s top tourist destinations and one of the earliest countries to offer free public transportation, with the highest minimum wage in the world.
Ireland follows closely behind, ranking third with a GDP-PPP of $133,900. Ireland is one of the largest corporate tax havens globally, with multinational companies such as Apple, Google, and Microsoft contributing over 50% of the country’s economic growth in recent years.
European countries dominate this ranking. Besides Luxembourg and Ireland, prosperous financial hubs like Switzerland, debt-free San Marino, leading in quality of life, education, and government transparency like Iceland, and Norway with the world’s largest sovereign wealth fund all make it to the top ten.
Notably, the United States is the only North American country in the top ten, ranking ninth. In Asia, besides four countries and regions making it to the top ten, Taiwan ranks 14th with a GDP-PPP of $76,860, closely followed by Hong Kong at 15th place.
Below are the top ten wealthiest countries as of October 2024, along with their GDP-PPP per capita:
1. Luxembourg: $143,740
2. Macau SAR: $134,140
3. Ireland: $133,900
4. Singapore: $133,740
5. Qatar: $112,280
6. United Arab Emirates: $96,850
7. Switzerland: $91,930
8. San Marino: $86,990
9. United States: $85,370
10. Norway: $82,830