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
If we simply consider a nation's gross domestic product—the sum of all goods and services produced by a country during one year—then we would have to conclude that the richest nations are exactly the ones with the largest GDP: United States, China, Japan, Germany.
What are the 3 richest countries in the world today? ›
If we simply consider a nation's gross domestic product—the sum of all goods and services produced by a country during one year—then we would have to conclude that the richest nations are exactly the ones with the largest GDP: United States, China, Japan, Germany.
How rich is usa? ›
Which is the wealthiest country? With an overall net worth of $145.8 trillion and a GDP of $25.46 trillion, the US is the number one richest nation in the world.
Is Canada a rich country? ›
As late as 1981, Canada ranked sixth among OECD countries in GDP per capita, behind only Switzerland, Luxembourg, Norway, the United States and Denmark. But we're not any more. As of 2022 we were 15th. Over the 40-odd years in between, Canada's per capita GDP grew more slowly than that of 22 other OECD members.
Which is the No 1 richest country? ›
Luxembourg, whose financial sector makes up 25% of its GDP, is the world's richest country by GDP per capita. With a population of just 660,000, the country is also considered a tax haven, incentivizing foreign investment due to its favorable tax policies.
Which country is no 1 poorest country? ›
1. Burundi. Burundi consistently ranks among the poorest countries globally. Economic instability, political unrest, and reliance on subsistence agriculture contribute to its economic struggles.
What is the top 5 richest country? ›
Which are the top-5 richest countries in the World? The top-5 richest countries in the world are: USA, China, Japan, Germany and India. Among these, USA stands on the first position with the GDP of $26,854 B.
What is the fastest growing country in the world? ›
Guyana registered the world's highest real GDP growth rate in 2022, with its national output 62.4% higher. Driven by its booming oil sector, the economy is set to expand by 27.2% in 2023 and 34.2% next year — consolidating the country as the world's fastest-growing economy in 2024.
Is Qatar richer than USA? ›
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!
How rich is 1% in USA? ›
You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.
1- United States: Located in North America, the United States is the world's third largest and most populous country. It has once again surpassed China to become the world's richest country.
Is Japan a rich country? ›
Wealth Per Capita (2022): $216,078
Japan is one of the leading economies and one of the wealthiest countries by per capita net worth. In 2022, the total wealth of the country was $22.58 trillion. Japan ranks among the wealthiest countries by per capita net worth.
What are the top 5 richest country? ›
The U.S., China, Japan, Germany, and India are some of the top economies in the world, based on gross domestic product (GDP). GDP is an estimate of the total value of finished goods and services produced within a country's borders during a specified period, usually a year.
Who is richest man in the world 2024? ›
F or the second year running, luxury goods magnate Bernard Arnault is the richest person in the world, ranking number one on Forbes' World's Billionaires list.
Which is the most powerful country in the world? ›
The United States remains the world's most powerful nation, according to the 2024 US News Power Rankings. However, China continues its ascent, securing the second spot driven by its technological advancements and economic clout.
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.