In this article we take a look at the 25 richest countries in the world. To see the top 5 countries in this list go to 5 Richest Countries in the World.
Global wealth has been a topic of interest for economists and social scientists for centuries now. Humanity has come a long way over the past few decades and progressed enormously. Global wealth has expanded exponentially, pulling millions out of extreme poverty. According to the World Bank, the global poverty rate has decline from 37.8 percent in 1990 to 11.2 percent in 2014. The industrial revolution that brought huge economic and social changes for human societies played a key part in setting the stage for the man to make the maximum use of economic opportunity in the world. The technological revolution has now enabled millions of people to access economic opportunities located thousands of miles away from them.
However, the world is reminded of the weaknesses of its economic system after every few years. The 2022 stock market crash, economic uncertainty, rising inflation and central banks’ response to it wiped off billions of dollars from the stock market, causing global wealth to see a contraction. A report by Allianz earlier this year said that global household wealth was on track to see its first “significant contraction” since the financial crisis of 2008.
The report said that after three years of record gains in the value of household financial assets, 2022 is expected to see a nominal drop of more than 2%.
The age-old problem of economic inequality still remains a challenge for human societies. It seems that pandemics, recessions, disease, stock market crashes and wars tend to make this problem worse, as the 80-20, winner-take-it all (or Pareto principle) seem to be almost always hard at work when it comes to human wealth.
On the one hand there’s a doomsday scenario that is predicted almost on daily basis by several market analysts who see a grave recession starting in 2023. On the other hand, Credit Suisse recently estimated in a report that the number of millionaires in the world will grow by a whopping 40% by 2026. The report also said that there will be about 87.5 million people with at least $1 million in wealth by 2026, up from 62.5 million in 2021.
In June, a Bloomberg report said that the 500 wealthiest people in the world lost a combined $1.4 trillion in 2022 due to stock market losses, higher inflation, decreasing spending and an overall slowdown in global economy
China’s crackdown against tech companies and a slowing real estate sector in the country were also key causes of this huge decline in global wealth.
Bloomberg also cited a report by Capgemini, which said that The US, Japan, China and Germany were home to a whopping 64% of high-net-worth individuals globally.
Our Methodology
We picked the top 25 richest countries in the world based on Gross National Income per capita (PPP), as of 2021. We took data from a World Bank report.
Richest Countries in the World
25. Canada
GNI Per Capita (PPP): $51,690
Because of its enormous natural resources, such as petroleum and natural gas, Canada is regarded as an energy superpower. It is one of the least corrupt countries in the world and one of the top 10 trading countries, according to the Corruption Perceptions Index. On the Index of Economic Freedom, Canada outperforms the United States and has a low degree of economic inequality.
24. France
GNI Per Capita (PPP): $51,850
France is the third largest economy in Europe. The economy of France is diverse and free-market-oriented. Agriculture and tourism, as well as the chemical industry, are important sectors of the French economy.
23. Cayman Islands
GNI Per Capita (PPP): $53,770
The Cayman Islands, a British Overseas Territory, encompasses 3 islands in the western Caribbean Sea.
22. Australia
GNI Per Capita (PPP): $55,290
Australia recently set a new record for the longest period of unbroken GDP expansion in the developed world, marking 26 years since the country had a technical recession (two consecutive quarters of negative growth). Australian economy is largely based on service industries.
21. Iceland
GNI Per Capita (PPP): $55,920
According to OECD, Iceland’s economic growth will slow to 2.5% in 2023 and 2.3% in 2024.
20. Finland
GNI Per Capita (PPP): $55,940
Industry, services and manufacturing make up a huge chunk of Finland’s economy.
19. Austria
GNI Per Capita (PPP): $58,370
Austria had a huge nationalized economy but the country is rapidly privatizing its sectors to spur growth.
18. Kuwait
GNI Per Capita (PPP): $59,040
Thanks to the country’s huge oil resources, the Kuwaiti dinar is the highest-valued unit of currency in the world.
17. Belgium
GNI Per Capita (PPP): $59,460
Belgium’s economy is a modern, capitalist economy that has benefited from the country’s central geographic location, well-developed transportation infrastructure, and diverse industrial and commercial base.
16. Germany
GNI Per Capita (PPP): $59,680
Germany is the largest economy in the Europe and the fourth largest in the world.
15. Sweden
GNI Per Capita (PPP): $61,090
Sweden’s economy is a developed export-oriented economy that is supported by wood, hydropower, and iron ore. These are the foundational resources of an economy based on international commerce. Motor cars, telephones, pharmaceuticals, industrial machinery, precision equipment, chemical products, household goods and appliances, forestry, iron, and steel are among the major industries.
14. Netherlands
GNI Per Capita (PPP): $63,360
The Netherlands has enjoyed consistent natural gas resources. The Netherlands now has more than a quarter of the European Union’s natural gas reserves. The selling of natural gas resulted in a considerable increase in revenue for the Netherlands over the past few years.
13. United Arab Emirates
GNI Per Capita (PPP): $66,680
While over 80% of the country’s economy is based on oil, UAE is opening itself to tech companies and startups and fast becoming a land of economic opportunity for young talent.
12. Denmark
GNI Per Capita (PPP): $66,720
Services and exports account for a major chunk of Denmark’s economy. The country exports machinery, chemicals, medicines and agricultural products.
11. Brunei Darussalam
GNI Per Capita (PPP): $67,580
This tiny Island nation enjoys a huge wealth thanks to oil and gas resources.
10. United States
GNI Per Capita (PPP): $70,480
The US is recognized across the world for fostering a culture that supports and encourages entrepreneurship, which leads to innovation and, in turn, economic prosperity.
9. Hong Kong
GNI Per Capita (PPP): $70,700
Hong Kong is one of the favorites of global entrepreneurs, thanks to the country’s tech-friendly startup ecosystem, strong banking systems and consumer-friendly regulations.
8. China
GNI Per Capita (PPP): $72,260
China is the world’s second largest economy. The average annual growth rate of China between 1989 and 2019 was 9.52%.
7. Switzerland
GNI Per Capita (PPP): $75,860
Switzerland’s economy is one of the most advanced free market economies in the world. The service sector, notably the Swiss banking industry and tourism, has grown to play a considerable economic role.
6. Ireland
GNI Per Capita (PPP): $79,450
Ireland’s economy is highly developed and focuses on services in high-tech, life sciences, financial services and agribusiness, including agrifood.
Click to continue reading and see 5 Richest Countries in the World.
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Disclosure: None. 25 Richest Countries in the World is originally published on Insider Monkey.