Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.
Global Finance magazine has released a report ranking all countries in the world based on their GDP per Capita.
Gross Domestic Product (GDP) per capita (Latin phrase for 'per person') is an economic metric that divides a country's GDP by its population. This provides the average economic output per person.
According to the latest report from Global Finance, several of the world’s wealthiest countries are also among the tiniest, benefiting from sophisticated financial sectors, lucrative natural resources, and favourable tax regimes.
A common thread among the richest nations is their small populations, which allows their substantial economic output to translate into high per capita wealth.
These countries often have specialised economies, advanced financial sectors, or significant natural resources, making them economic powerhouses despite their size.
Luxembourg, a European microstate with a population of around 670,000, tops the list with an average GDP per Capita of $143,743 (about KSh 19,066,977).
Renowned for its robust financial sector and high standard of living, Luxembourg leverages its strategic location and banking secrecy laws to attract global wealth.
Macao has rebounded strongly post-pandemic, recording a GDP per Capita of $134,141 (about KSh 17,793,342) in 2024.
Macao SAR has a small population of around 700,000 and a booming g*mbling and c*sino industry.
Ireland has transformed itself into a hub for multinational corporations, thanks to its low corporate tax rates and has a GDP per capita of $133,895 (about KSh 17,751,587).
However, Global Finance noted that this ranking reflects the profits of large firms more than the average income of its citizens.
Singapore's rise from a developing nation to a global financial centre is remarkable, with a GDP per capita of $133,737 (about KSh 17,735,397).
The city-state continues to attract high-net-worth individuals with its favourable tax policies and business-friendly environment.
Qatar's vast reserves of oil and natural gas contribute significantly to its wealth, and its GDP per capita is $112,283 (about KSh KSh 14,883,507).
Despite a small population, the nation maintains a high standard of living and robust economic resilience.
The UAE, particularly Dubai and Abu Dhabi, leverages its oil wealth to diversify into tourism, finance, and trade.
The nation has a cosmopolitan population and a rapidly evolving economy with a GDP per capita of $96,846 (about KSh 12,853,215).
Switzerland's wealth is driven by its banking sector, high-tech industries, and the export of luxury goods.
The country boasts a high average wealth per adult with a GDP per capita of $91,932 (about KSh 12,197,590) and a strong economy despite recent financial sector upheavals.
This small European nation of 34,000 people benefits from low taxes and a resilient tourism industry.
San Marino’s economy has shown impressive stability and growth even in challenging times and has a GDP per capita of $86,989 (about KSh 11,539,617).
The U.S. remains a global economic powerhouse with a large and diverse economy with a GDP per capita of $85,373 (about KSh 11,313,977).
Recent measures have boosted its economic performance, maintaining its position in the top 10.
Norway’s wealth is largely driven by its oil and gas sector recording a GDP per capita of $82,832 (about KSh KSh 10,982,240).
The country also has a substantial sovereign wealth fund, providing a safety net and helping to maintain a high standard of living for its citizens.
The Global Finance Magazine noted that despite their wealth, these nations are not immune to economic challenges and inequalities.
For instance, in nations like the U.S. and Switzerland, the gap between the rich and poor remains a critical issue.
In other related news, TUKO.co.ke reported the top 20 richest countries in Africa.
Countries were evaluated using GDP-PPP (Purchasing Power Parity) per capita, which considers differences in cost of living and inflation, providing a more accurate picture of economic well-being
Nations with sophisticated financial sectors, lucrative natural resources, favourable tax regimes, and small populations typically achieve higher GDP per capita.
Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke
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