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 2022. 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 14 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 (tenth place) is surprising, but Germany (19th) and Australia (20th) are also well placed.
Read also:
The poorest countries in the world. Life below poverty line
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.
* The marked countries are not independent and sovereign states, but dependent territories of other states. Cf. also our article What is a country?
FAQs
According to the CIA World Factbook and Forbes, the Arabian nation of Qatar holds the title of the "richest country of the world," boasting an annual average per capita income of $103,768.60. For a little perspective, that's more than double the average annual per capita income in the United States!
Is China richer than the USA? ›
The Per capita income of the United States is 6.5 and 3.41 times higher than that of China in nominal and PPP terms, respectively. The US is the 6th richest country in the world, whereas China comes at 72nd rank. On a PPP basis, The United States is in 9th position, and China is at 78th.
Who is the top 1 richest country? ›
In 2024, Luxembourg is the world's wealthiest nation by GDP per capita. Gross Domestic Product (GDP) is used to evaluate the economic prosperity of nations and their citizens globally.
Why is Dubai so rich? ›
Today, Dubai has a diversified and dynamic economy that rests on several pillars: finance, trade, transportation, tourism, oil, and technology. The city's strategic location between Europe, Asia, and Africa makes it an ideal hub for international business and commerce.
How did Qatar get so rich? ›
The exploration of oil and gas fields began in 1939. In 1973, oil production and revenues increased dramatically, moving Qatar out of the ranks of the world's poorest countries and providing it with one of the highest per capita incomes in the world. Qatar's economy was in a downturn from 1982 to 1989.
Which country has the most millionaires? ›
The U.S. is now home to 37% of the world's millionaires, up from 35% in 2018. The divergence grows even more at the top of the wealth ladder. The U.S. has 9,850 centi-millionaires — those worth $100 million or more — compared with China's 2,352. The U.S. has about 788 billionaires to China's 305.
Is Mexico a rich country? ›
The economy of Mexico is a developing mixed-market economy. It is the 12th largest in the world in nominal GDP terms and by purchasing power parity. Since the 1994 crisis, administrations have improved the country's macroeconomic fundamentals.
How much does the US owe China? ›
US Treasurys Owned by China, in USD Billions
$797.7 billion of the total $8,023.7 billion U.S. national debt.
How much is the USA worth? ›
The financial position of the United States includes assets of at least $269 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP).
Why is Luxembourg so rich? ›
Luxembourg's wealth can be attributed to several key factors. First, the country has a thriving financial services sector and serves as a global hub for private banking. Secondly, Luxembourg has a stable political environment, which attracts businesses and investors and fosters economic growth.
Slovenia has a highly educated workforce, well-developed infrastructure, and is situated at a major transport crossroads. The level of foreign direct investment is one of the lowest but has been steadily rising in the last few years.
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.