As we settle into 2023, with the first quarter almost coming to an end, the global economy is reeling from the devastating impacts of last year. The coronavirus pandemic, which saw record stimulus spending from central banks all over the world, led to excess capital flowing into the market. This was compounded by a drastic reduction in overall expenditure, as travel and other restrictions limited the money that people could spend on luxury activities. The combined impact of these enabled people to spend vast amounts of funds towards purchases as the economy opened up, which led to the ugly beast of inflation rearing its head. Then, to make matters worse, the Russian invasion of Ukraine kicked off and disrupted the global commodities and energy market – causing both grain and oil prices to rocket to record highs.
All this led to severe losses on the stock market and caused massive losses for some hedge funds. While 2023 started on an optimistic note with initial inflation data showing that rapid interest rate hikes from the Federal Reserve had started to make their mark to cool the economy, things then took a nose dive later on as some inflation data was revised and statements made by the Fed Chairman Mr. Jerome Powell to the U.S. Congress indicated that the Fed might raise its interest rate ceiling.
However, even as investors were starting to digest the latest development, the inevitable happened and SVB Financial Group (NASDAQ:SIVB) collapsed after a bank run drained it of crucial deposits. Even though a bank’s collapse isn’t good news by far, in a topsy turvy world, it provided investors with some hope of a pause in interest rate hikes. The interconnectedness of the global economy led to fears of a banking crisis all over the world due to the SVB collapse, especially as First Republic Bank (NYSE:FRC) was bailed out by a consortium of banks that injected $30 billion in deposits into it to help keep it afloat. At the same time, one of Europe’s major banks, Credit Suisse warned investors that its balance sheet might not be so pristine, and it ended up borrowing $54 billion from the Swiss Central Bank to ensure liquidity.
With one crisis after another, the global economic outlook isn’t so stellar right now, even though the recent events might have placed the devastation ushered in by the coronavirus pandemic at the back of the public imagination. However, there is some good news, especially when it comes to inflation. Estimates from the International Monetary Fund (IMF) show that while global inflation nearly doubled from 4.7% in 2021 to 8.8% in 2022, it will drop back to 6.5% this year and 4.1% next year. Yet, at the same time, the Fund also believes that 2023 will mark another year of a slowdown in global economic growth, as it estimates that from a growth rate of 6% in 2021, the world economy slowed down to 3.2% last year and will further drop to 2.7% this year.
Narrowing this data down to Advanced and Emerging economies, growth across the developing world will be severely hampered this year, believes the IMF. Starting from the U.S., while the American economy roared at 5.7% growth in 2021, it was expected to slow down to 1.6% last year and will continue to slow down to 1% this year. The Eurozone will be hit more severely, with its economic growth dropping by more than 50% from an expected 3.1% in 2022 to just 0.5% this year. Within the region, Germany and Italy are expected to post an economic contraction this year, with their gross domestic products (GDPs) dropping by 0.3% and 0.2%, respectively. These figures come as modern ‘Europe’s sick man’, the United Kingdom, saw its population face the sharpest drop in purchasing power over the past seven decades, as the government’s forecasting body predicted that after inflation was accounted for, British purchasing power would drop by a painful 6% this year and in 2024. This prediction was accompanied by a rather dour estimate that the British won’t see their purchasing power rise to pre-pandemic levels before 2027.
However, while conditions in the developed world appear to be quite tough, the troubles pale when some of the world’s most perilous regions in terms of economic conditions are considered. Even though inflation of 6% is worrying both the population and the Fed, this appears to be almost negligible when we look at the happenings in Argentina. The country’s inflation soared past a devastating 102% in February 2023 according to data from the country’s statistics agency. It was also revealed that the Lebanese Pound had collapsed to an eye popping 100,000 pounds to a U.S. dollar on the black market – the only source of liquidity in a country where the official currency rate is still pegged to 15,000 pounds to the dollar. For reference, the Lebanese Pound was trading at around 1,500 to the dollar just four years back.
With this economic backdrop, we’ll look at the countries with the highest gross domestic product per capita today, as the global economy shakes up and purchasing powers drop.
We have used data from the International Monetary Fund (IMF) a global body responsible for helping distressed economies to pick the countries with the highest GDP per capita. In economics, there are two kinds of GDP readings – nominal and real. Nominal GDP is simply the total output per member of the population while the real reading also accounts for differences in purchasing power. For our piece, we have used the real estimates since they purely measure economic output.
30 Countries with Highest GDP per Capita
30. Italian Republic
GDP Per Capita in 2023: $33,660
The Italian Republic is a European country with a diverse history and well known companies such as Ferrari, Leonardo, and Eni. It has a GDP per capita of $33,660.
29. Republic of Korea (ROK)
GDP Per Capita in 2023: $34,770
The Republic of Korea (ROK) is an Asian country with a large economy made up of multinationals such as Samsung and Hyundai. The country has a $34,770 GDP per capita.
GDP Per Capita in 2023: $35,030
Japan is one of the biggest economies in the world, with a real GDP of $4.3 trillion as of 2022 – making it the third largest in the world. It has a GDP per capita of $35,030.
27. State of Kuwait
GDP Per Capita in 2023: $35,260
The State of Kuwait is an Arabic Western Asian country with a $183 billion economy with significant reliance on the petroleum industry. It has a $35,260 GDP per capita.
26. Republic of China
GDP Per Capita in 2023: $36,830
The Republic of China is an island region in the South China Sea that is claimed by China as its territory. It is home to the Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and has a $36,830 GDP per capita.
25. Principality of Andorra
GDP Per Capita in 2023: $40,640
The Principality of Andorra is a landlocked European country with a relatively small $3.3 billion GDP. According to the IMF, it has a GDP per capita of $40,640.
24. Brunei Darussalam
GDP Per Capita in 2023: $41,710
Brunei Darussalam is a Southeast Asian country that relies primarily on petroleum products to earn foreign exchange. Its GDP per capita is $41,710.
23. French Republic
GDP Per Capita in 2023: $42,650
The French Republic, or France, is a European country and a global power player in modern day politics. Its GDP per capita is $42,650.
22. Republic of San Marino
GDP Per Capita in 2023: $47,480
The Republic of San Marino is the fifth smallest country in the world with a GDP of $2.7 billion. Its GDP per capita is $47,480.
21. United Arab Emirates
GDP Per Capita in 2023: $48,260
The United Arab Emirates, or UAE, is a Western Asian Arabic country, which is known as a global hub. The country has a GDP per capita of $48,260.
20. New Zealand
GDP Per Capita in 2023: $49,010
New Zealand is an island country in the Pacific Ocean with an advanced economy that relies significantly on agricultural products for global trade. It has a $49,010 GDP per capita.
19. Federal Republic of Germany
GDP Per Capita in 2023: $49,430
The Federal Republic of Germany is Europe’s largest economy and known for big brands such as Audi and BMW. It has the fourth largest economy in the world of $4 trillion with a GDP per capita of $49,430.
18. Kingdom of Belgium
GDP Per Capita in 2023: $50,910
The Kingdom of Belgium is a prosperous European nation and one of the most developed countries in the world. It has a GDP per capita of $50,910.
17. Republic of Finland
GDP Per Capita in 2023: $51,180
The Republic of Finland is a Nordic European country that relies heavily on electrical equipment and other electrical products for its exports. It has a $51,180 GDP per capita.
16. United Kingdom of Great Britain and Northern Ireland
GDP Per Capita in 2023: $51,290
The United Kingdom of Great Britain and Northern Ireland is a global power known for firms such as Shell and GSK. It has the sixth largest economy in the world and a per capita GDP of $51,290.
15. Republic of Austria
GDP Per Capita in 2023: $52,320
The Republic of Austria is a landlocked European country. It has a GDP of $468 billion and a GDP per capita of $52,230.
GDP Per Capita in 2023: $57,630
The Netherlands is a prosperous European nation that is one of the most developed countries in the world. One of its top companies is ASML, which is the only one capable of making advanced chipmaking machines.
13. State of Israel
GDP Per Capita in 2023: $58,270
The State of Israel is a Middle Eastern country that is one of the most technologically advanced countries in the world. It has a GDP per capita of $58,270.
GDP Per Capita in 2023: $59,180
Canada is a North American country with a large land border with the U.S., which is also its largest trading partner. Rich in natural resources, it has a $59,180 GDP per capita.
11. Kingdom of Sweden
GDP Per Capita in 2023: $60,470
The Kingdom of Sweden is a prosperous Nordic European country, and one of the few first world nations in the world. It has a $60,470 GDP per capita.
GDP Per Capita in 2023: $66,390
Denmark is another Nordic country, which relies on a wide variety of manufactured products to earn its foreign exchange. It has a $386 billion GDP and a per capita income of $66,390.
9. Commonwealth of Australia
GDP Per Capita in 2023: $68,080
The Commonwealth of Australia is an Oceanic country with vast natural resources and a GDP per capita of $68,080.
GDP Per Capita in 2023: $77,960
Iceland relies primarily on raw materials for its exports and has a GDP per capita of $77,960.
7. United States of America
GDP Per Capita in 2023: $78,420
The US is one of the most advanced nations on earth with corporate giants such as Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA). It is the world’s largest economy with a GDP per capita of $78,420.
6. Republic of Singapore
GDP Per Capita in 2023: $84,500
The Republic of Singapore is an Asian island city state. It is the third most densely populated country in the world and has a GDP per capita of $84,500.
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Disclosure: None. 30 Countries with Highest GDP per Capita is originally published on Insider Monkey.