The country’s high GDP per capita can be attributed to its thriving tourism industry, renewable energy sector, and robust fisheries. Additionally, Iceland benefits from a well-functioning welfare system, strong infrastructure, and a highly educated workforce. Countries with economic growth rising faster than real interest rates may be more likely to sustain high debt levels. But sticky inflation, prompting higher interest rates, will likely make these debt piles even more fragile. GDP per capita attempts to level the playing field by dividing a country’s economic output by its population, effectively giving the average GDP per person.
Qatar invests heavily in infrastructure development, tourism, finance, and real estate, positioning itself as a regional hub for business and trade. The country’s strong welfare state, high standard of living, and well-regulated market economy contribute to its high GDP per capita. Denmark has a diverse economy, with key sectors including manufacturing, services, renewable energy, and pharmaceuticals. Bermuda’s thriving offshore financial sector, which includes insurance and reinsurance industries, has been a major driver of its high GDP per capita.
Federal Republic of Germany
This year alone, new government debt issuance is projected to hit record levels. A large portion of this debt consists of infrastructure bonds that are focused on boosting the economy. In the U.S., public debt-to-GDP is set to reach a record 134% by 2027. The sharp rise in interest rates is increasing net debt servicing costs, which stood at $475 billion last year. Over the next 10 years, net interest costs on U.S. debt are projected to total $10.6 trillion.
Additionally, Finland boasts high-quality education and a skilled labor force, contributing to its economic prosperity. The Faroe Islands – a Danish territory – has the tenth highest GDP per capita at $69,010. The Faroe Islands’ high GDP per capita is primarily driven by its fishing industry, which contributes significantly to its economy. Additionally, the islands have benefited from investments in renewable energy, tourism, and the development of niche industries. This comes as aging populations, slower economic growth, and healthcare costs are straining government spending, a trend seen across many advanced economies.
Among the top 50, Oman’s rank would move up by six positions and enter the top 50 lists. These economies are not ranked in the charts here, but are listed in sequence by GDP for comparison. Over the next five years, it is projected to jump even further—raising concerns about government leverage in a high interest rate and slower growth environment. Total global debt stands at nearly $305 trillion as of the first quarter of 2023.
Richest countries in the world by GDP per capita in 2023
Others have been replaced all together, with Iceland, Denmark, and Australia falling out of the top 10, replaced by Macao, the UAE, and San Marino.
- The country has attracted significant foreign direct investment, particularly from the tech industry, benefiting from its skilled workforce, favorable tax policies, and membership in the European Union.
- For one, it is a measurement of economic output per person, not individual income or household savings.
- Gross domestic product (GDP) is a measurement that describes the value of a geographic location’s total goods and services, and how it relates to the population of the region.
The Cayman Islands have the seventh highest GDP per capita at $86,569, and Singapore has the eighth highest GDP per capita at $72,794. The United States has the ninth highest GDP per capita in the world at $70,249, and the Faroe Islands round out the top ten with $69,010. There is a substantial disparity in GDP per capita across different regions.
Problems with GDP per capita and the usefulness of GNI
There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. The table initially ranks each country or territory with their latest available estimates, and can be reranked by either of the sources. This article was published as a part of Visual Capitalist’s Creator Program, which features data-driven visuals from some of our favorite Creators around the world. The U.S. leads the Americas in both nominal and PPP-adjusted per capita GDP. However, Canada drops to 3rd place under the new metric, overtaken by Guyana. Some countries have switched ranks in the top 10, such as Ireland and Luxembourg.
A key element of these indexes is that they remove these price differences and convert into a common currency in order to show relative economic prosperity. Popular examples are The Economist’s Big Mac index and the Wall Street Journal’s Latte Index. The State of Israel is a Middle Eastern country that is one of the most technologically advanced countries in the world.
After rising steadily for years, government debt first ballooned to almost 100% of GDP in 2020. While this ratio has fallen amid an economic rebound and high inflation in 2021 and 2022, it is projected to regain ground and continue climbing. For one, it is a measurement of economic output per person, not individual income or household savings. That gives it clear limitations in certain cases, such as in Ireland, where the presence of multinational corporations obfuscates the general output per person. To solve this problem, economists utilize purchasing power parity (PPP) indexes.
List of Countries by GDP per Capita
Are you interested in knowing which countries have the strongest economies? Our article provides a list of the wealthiest countries based on their GDP per capita ranking top gdp per capita countries for the year 2023. GDP per capita is a significant economic measure that offers an understanding of the average income and living standards of a country’s citizens.
Despite this, 39 of these countries are in debt distress—or are close to it—as high interest rates add pressure to government balance sheets. 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. The Commonwealth of Australia is an Oceanic country with vast natural resources and a GDP per capita of $68,080. 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.
Republic of Korea (ROK)
It has the sixth largest economy in the world and a per capita GDP of $51,290. The Republic of Finland is a Nordic European country that relies heavily on electrical equipment and other electrical products for its exports. The Kingdom of Belgium is a prosperous European nation and one of the most developed countries in the world. The Italian Republic is a European country with a diverse history and well known companies such as Ferrari, Leonardo, and Eni. To help compensate for this distortion of GDP, many economists also view a country’s Gross National Product (GNP), or a related metric, Gross National Income (GNI).
European countries like Monaco, Luxembourg, and Switzerland tend to dominate the top ranks, highlighting the region’s prosperity. Meanwhile, Sub-Saharan African countries, such as Burundi, Mozambique, and the Central African Republic, struggle with lower GDP per capita figures, indicative of economic hardships faced by many countries in the region. The good news is that 60% of economies are forecast to see their public debt-to-GDP ratios fall below COVID-19 peaks by 2027. Debt sharply increased in both 2020 and 2009 in conjunction with economic downturns.
Curious about the richest economies in the world? In this post, we list the top countries by GDP per capita ranking in 2023
Historically, debt levels compared to GDP tend to increase as little as 4% and much as 15% in the five years after a global recession has ended. And in Oceania, adjusting GDP for purchasing power doesn’t have much effect on the sizable gap between Australia and New Zealand and their smaller island neighbors. But some local economies are noticeably stronger when adjusting for PPP, especially Fiji‘s, which has a GDP per capita (PPP) three times bigger than its nominal value. Non-tradable goods in a country (haircuts, local transport, schools, etc.) do not get valued when using an exchange-rate conversion.
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. Among the top 10 richest economies, Ireland has the fastest-growing
economy with 13.04%. Among the top 50 economies having the highest gdp per capita, Macao SAR is the fastest growing economy
with a growth rate of massive 20.44%, followed by Ireland. Only Puerto Rico will have a negative growth rate of -0.6%, followed
by Kuwait (0.95%). The US GDP per capita is one of the highest GDP per capita in the world at $70,249.