Richest Countries in the World

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The richest countries in the world have thriving economies and infrastructure that make them desirable places to live or visit.

Knowing which countries are the richest can help you determine where you should live, or simply satisfy your curiosity.

GDP vs. GDP Per Capita

Before we take a look at the richest countries in the world, you should know how it’s determined.

There are two main measures of wealth.

These are Gross Domestic Product, or GDP, and GDP per Capita.

What is GDP?

Gross Domestic Product, or GDP, calculates the value of all products and services within a country.

Essentially, the monetary value of all the products produced within the country and services offered are added together.

This is GDP.

It’s important to note that services and goods only count towards GDP when they have a monetary value.

For example, if someone is paid for housekeeping, this contributes to GDP.

However, household chores they do at home do not.

What is GDP per Capita?

GDP per Capita is essentially GDP broken down into a percentage for each individual person.

This shows how productive an economy is.

It’s determined by dividing the GDP by the population.

Of course, GDP per capita is impacted by the population, as well as the GDP.

If the population increases drastically but the GDP remains the same, the GDP per capita will fall.

On the other hand, if the population stays the same and the GDP goes up, the GDP per capita will increase significantly.

GDP per capita can also give you a general idea of how much someone earns in the country.

Of course, wages will vary.

Every country has very rich and very poor residents which affects the GDP per capita as well.

However, if GDP per capita is rising, you can expect wages to rise as well.

Richest Countries in the World

Which country is the richest in the world depends on which measurement you choose to use.

Let’s take a closer look at a few of the richest countries by different measures.

By GDP

The richest country by GDP is the United States.

America has a GDP of 20,893.75.

China is next, with a GDP of 14,862.564.

Japan is the last in the top 3, with a GDP of 5,040.108.

By GDP per Capita

The richest countries change drastically when you look at the GDP per capita, rather than the GDP.

The U.S., which has the highest GDP, ranks 11th in GDP per capita, at 54778.42.

The countries with the highest GDP per capita are Luxembourg, Ireland, and Norway.

The countries with the highest GDP per capita typically have smaller populations.

Because the small population means that the wealth in the country is more concentrated, which raises the per capita GDP.

Advantages and Disadvantages of Living in a Rich Country

When you live in a rich country, it’s easy to overlook the advantages and benefits.

Rich countries have a strong infrastructure, which includes transportation, education, and healthcare.

They typically have higher wages, which also results in a higher standard of living for residents.

Benefits also include a longer life expectancy, lower birth rates, and a better quality of life.

However, there are disadvantages to living in a rich country.

Opportunities can sometimes be harder to find.

If you aren’t wealthy, you may find it difficult to climb the ladder and move up to a different financial class.