Top 10 richest countries in the world 2022
Since time immemorial, countries around the globe have been engaged in an economic and militaristic competition.
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The technological advancement in these countries has brought about wealth and prosperity to their citizens, thereby making it crucial to grade the positions of different countries based on their economic prosperity and even maybe overall happiness of their inhabitants.
The top 10 wealthiest countries in the world will include a list of countries selected based on their current Gross domestic product (GDP) per capita and the Purchasing Power Parity per capita.
The GDP is a monetary representation that shows the market value of the goods and services produced in a country over a specific period, usually one year. GDP per capita represents a country's GDP divided by the population at the time.
The GDP is not a perfect metric in comparing the living standards across different countries or how rich a country is because it does not reflect the cost of living and inflation rates in countries.
The GDP is measured by taking notes of total exports, imports, investments, government spending, etc. However, labour, which contributes to differences in standard of living and the final cost of goods, is not moveable and may not accurately represent the GDP.
For instance, a Big Mac (beverage) might cost 10 USD in the United States but sell at 2000 NGN in Nigeria. Approximate calculations using the FOREX rate (I USD = N560) at the time of this writing shows that with the same 10 USD, a Nigerian can get at least 4 Big Macs in Nigeria; the reason could be as a result of the difference in the cost of labour between Nigeria and the United States.
To better analyse the top 10 richest countries in the world in 2022, the GDP per capita is adjusted based on the Purchasing Power Parity (PPP) per capita, which considers the difference in the standard of living between countries.
PPP is a more accurate measurement of wealth distribution across different countries because it compares currencies by using the various costs of a basket of goods or food in each country.
With the PPP, Economists can measure how rich a country is and get an overview of the standard of living in different countries across the globe.
Below is the list of the world top 10 richest countries in 2022.
1. Luxembourg
Luxembourg's GDP, PPP per capita = 118,503.6 USD
Luxembourg's Population = 632,275
Though a landlocked country, Luxembourg has managed to become the richest country in the world, with a PPP per capita value of $118,503.6. The small country is one of the major economies in the Eurozone.
Luxembourg was once a proud industrial state with its steel production in 1960. The country has since diversified its economy, with the banking sector being the most thriving niche.
Often tagged as a tax haven, Luxembourg hosts some of the regional headquarters of major multinational countries like Skype and Amazon.
Luxembourg has a stable economy, low inflation and unemployment rate. In 2010, Eurostat reported 2010 that the Agricultural sector employs about 2.1% of the country's population.
It is widely claimed that Luxembourg is among the richest countries in the world because of the country's tax revenues. A considerable percentage of Luxembourg's tax revenue comes from people working in Luxembourg but resides in other EU countries.
2. Singapore
Singapore's GDP, PPP per capita = 98,483.3 USD
Singapore's Population = 5,685,807
Singapore was formed in 1816 by one Briton, Sir Stamford Raffles. The Island country once served as a trading post of the defunct British Empire.
Singapore has no known natural resources but yet revamped its economy to become one of the wealthiest countries in the world.
Singapore is a highly developed country and has received AAA sovereign rating from all significant sovereign rating agencies. The prosperous Asian economy is also among the four Asian tigers dueas a result of trade and other economic developments.
The developed market economy has brought about innovation, free trade, and corporations' attention across the globe. Singapore is a rich country and was home to the world's highest percentage of millionaires in 2011.
3. Ireland
Ireland's GDP, PPP per capita = 95,237.2 USD
Ireland's Population since 2020 = 4,994,724
Ireland, also known as the Republic of Ireland, is an island located in Europe. Ireland has managed to turn its economy into an open market economy.
Ireland has been named the best country for high-value Foreign Direct Investment (FDI) at least six times in a row. Foreign Multinational companies are the drivers of Ireland's economy because of the government's policies.
The Republic of Ireland implemented some policies which made it possible for them to be among the top 10 richest countries in the world today. The country reduced its corporate tax from 32% to 12.5%, a policy that attracted corporations like Amazon, Apple and other big tech companies.
In 2015, Fora reported that Foreign corporations paid about 80% of Ireland's corporate tax; the former is also responsible for employing about a quarter of the private labour market.
4. Qatar
Qatar's GDP, PPP per capita = 89,935.3 USD
Qatar's Population since 2020 = 2,881,060
From ground zero about fifty years ago, Qatar has risen to become the 4th richest country in the world. Following British rule, the country gained independence in 1971 to become a sovereign nation.
The west Asian country has the highest human development in the Arab world. Qatar's progress to the list of top 10 richest countries in the world is highly linked to the discovery of Natural gas in the country.
Qatar has the 3rd largest natural gas reserves in the world. Qatari leaders used the revenues from the Oil exports to create a high standard of living for their citizens. It could explain the government could afford for the Qataris citizens not to pay 0 USD in income taxes; the rich country is also known to have one of the lowest tax rates in the world.
5. Switzerland
Switzerland's GDP, PPP per capita = 71,760.6 USD
Switzerland's Population since 2020 = 8,636,896
Switzerland is the 5th richest country in the world. Switzerland is located in Europe but is not a member of the European Union or the EuroZone.
Some of the major cities in Switzerland, Zürich, Geneva and Basel, rank among the cities with the highest quality of life.
Known as the birthplace of the Red Cross, Switzerland has maintained neutrality in recent wars and conflicts.
Switzerland has a stable and prosperous economy that has produced one of the largest GDP per capita, making it among the wealthiest country in the world. In 2020, the Global Innovation Index ranked Switzerland as the most innovative country globally.
Switzerland has a robust service sector like banking, tourism, insurance, etc.; the country also has a developed manufacturing sector that produces and exports chemicals, pharmaceuticals, measuring and musical equipment.
6. United Arab Emirates
United Arab Emirate's GDP, PPP per capita = 66,746.6 USD
United Arab Emirate's Population since 2020 = 9,890,400
Located on the eastern end of the Arabian Peninsula is the United Arab Emirates (UAE), a western Asian country popularly known for its international hub, Dubai.
The UAE has a rich oil and natural gas reserve, and it is among the largest in the world; however, the country has diversified its economy to not rely heavily on oil.
With its leverage on oil, natural gas, strict government interventions, the UAE has tripled the GDP more than three times in the last 40 years.
As one of the richest countries in the world, the UAE has seen an influx of migrants from Africa and other underdeveloped countries, making the citizens a minority.
7. Brunei Darussalam
Brunei's GDP, PPP per capita = 65,588.3 USD
Brunei's Population since 2020 = 437,483
Brunei is an Islamic country situated in Southeast Asia governed by an absolute monarchy. The Economic trajectory is Brunei countries changed following independence from the United Kingdom.
After its independence, its GDP gained about 56% between 1999 to 2008. The success story of Brunei cannot be unrelated to its access to crude oil. Brunei is a net exporter of Crude oil, which contributes significantly to its GDP.
The government of Brunei provides free education to its citizens. The policy has been overly evident, with the country recording a whopping 97.2% literacy level. Brunei also ranks 47th globally on the 2020 report of the Human Development Index.
8. San Marino
San Marino's GDP, PPP per capita = 63,420.3 USD
San Marino's Population since 2020 = 33,938
San Marino is a country in southern Europe and the self-acclaimed world's oldest republic. San Marino is among the smallest countries in Europe, with a land area of just about 61 sq km.
San Marino has seen economic growth over the years. The country's economy relies heavily on tourism, banking, manufacturing and exportation.
The economy also benefits from foreign investments due to its low corporate tax rates.
San Marino is a landlocked country but falls within the radar of the wealthiest countries in the world. It is a very developed country with a high standard of living and GDP per capita comparable to most European Union (EU) states.
San Marino is not a member state of the EU but has a special arrangement to use the Euro as its currency.
The high-income distribution in San Marino is reflected in the living standard of the inhabitants; San Marino is the only country in the world that has more cars than people.
9. United states of America
USA GDP, PPP per capita = 63,413.5 USD
USA Population since 2020 = 329,484,123
Arguably the world's foremost superpower, the United States of America (USA) holds the highest GDP in the world. The US is the largest economy in the world; it is also the largest importer and trails China as the largest exporter of goods.
USA dominated the world economy following victories from the Spanish-American war, world war I and world war II. It later established itself following the dissolution of the Soviet Union after the Cold war.
The US economy is a free market that encourages an entrepreneurial spirit protected by a robust system of independent government institutions. The American state not only dominates the world's total GDP but accounts for 30% of the total wealth in the world, even though it makes up a mere 4.2% of the world population.
The United States might rank as the 9th most prosperous country globally, but critics argue there is widespread inequality in race, income, universal healthcare, etc.
Nevertheless, the United States has contributed immensely to technological milestones through many successful startups and established companies.
10. Norway
Norways' GDP, PPP per capita = 63,287.6 USD
Norways' Population since 2020 = 5,379,475
A small country with just about 5.3 million residents, Norway is among the richest countries due to its mixed economy and natural resources.
Norway is not a socialist state yet maintains a comprehensive social security system and welfare program. The country has implemented policies that redistribute wealth to its population. No wonder it ranked first in the 2021 OECD Better Life Index.
Norway also has the largest Sovereign Wealth Fund (SWF) in the world, which is funded through export revenues from oil and gas. Apart from oil and gas, Norway is the second-largest fish exporter and has access to other enormous mineral resources within its borders.
Norwegian enjoys a good standard of living through its high GDP (PPP) per capita, which is among the highest in the world. Norway is also rated second to the list on the most fragile states index list for 2021.
Conclusion
The chances of being on the list of the top 10 richest countries in the world are directly related to the GDP (adjusted PPP) per capita and the population. Countries like the USA and Chine has a real GDP of over 15 trillion USD each, but the wealth distribution per capita is minimal due to the high population in these countries.
A noticeable pattern on the above list of wealthiest countries globally is that 9 out of 10 countries feature economies looped with interventionist government policies.
The reverse becomes the case in the United States of America, where the Government institutions own virtually no economic asset, even the federal reserve in the USA not solely controlled by the government.
The above proves that both the government and private corporations have a crucial role in ensuring that wealth is distributed equally.