Top 10 Richest Countries in the World 2014
|RANK||COUNTRY||Current International Dollar (GDP based on|
PPP per capita YEAR 2014)
|7||United Arab Emirates||63,180.83|
|10||Hong Kong SAR||52,984.06|
|SOURCE||World Economic Outlook Database, October 2014|
These estimates are made every year by international financial organizations such as the International Monetary Fund and the World Bank. While the GDP (PPP) is a good indicator of a country's wealth, calculations based on nominal GDP often tend to overlook the cost of living in each country. This list of the top ten richest countries in the world is based on the International Monetary Fund's World Economic Outlook Database October 2014, which uses the GDP per capita of each country, adjusted for cost of living and inflation rates of different countries. Smaller nations such as Qatar and Luxembourg therefore, head the list.
Gross Domestic Product (GDP) is the total market value of all goods and services produced in a country in a given time period. In the rankings of the World's Top 10 Richest Countries based on GDP (PPP) per capita for the year, Qatar is placed first, with Luxembourg placed second. Qatar is an oil rich country in the Middle East with an abundance of natural resources, such as natural gas.
Luxembourg is one of the smallest countries in the world, located in northwestern Europe, whose population enjoys a high standard of living. It is also a favorite destination among European countries for political activities, thanks to its central location not far from EU headquarters. Once bolstered by the iron and steel industry, Luxembourg's economy is working to maintain its momentum by providing international banking and financial services. Among the countries on the list, six are in Asia (Qatar, Singapore, Brunei, Kuwait, UAE, and Hong Kong), three are from Europe (Luxembourg, Norway, and Switzerland), and one is from North America (USA). International financial services, tourism, petroleum and natural gas exports, electronic goods manufacturing, facilitating international trade (as in the case of Singapore) and a flourishing service sector are the keystones behind the economic success of these nations which has led to their topping the table of the richest countries in the world.
Qatar - Richest Country in the World
Qatar tops the list of the 10 richest countries in the world because of its record-breaking GDP per capita, which is $1,45,894.18 . The country has a well evolved oil exploration industry and is considered the mainstay of Qatar's economy. It is striking to note that the petroleum industry contributes over 62% towards the government revenue, approximately 92% towards export earnings, and over 60% towards GDP. Qatar is also one of the nations that has invested hugely in British property and firms.
Luxembourg with just half a million population ranks number second in the list and has per capita GDP of $90,332.89 , which is multiple times of the world average. The cornerstone of this powerful economy is its exuberant financial sector (with bank holdings almost 20 times of its GDP size), ever increasing and diversified industries to include – steel, rubber, chemicals, etc. and its judicious fiscal policies. Its proximity with Belgium, France, and Germany is also a crucial factor for the prosperity and economic growth of the nation.
Singapore, officially known as the Republic of Singapore, is the tiny and self-governing city-state of Southeast Asia. Ranked as the third richest country in the world, it has per capita GDP of $78,761.92 and is one of the world's leading center for commerce. The foundation of Singapore’s wealth is its service sector for finance (the fourth largest financial center), its liberal economic ground that promotes innovation and growth, and its export industry for chemicals. Moreover, the country has the world's second busiest port that exported $414 billion of commodities in the year 2011. In 2014, it handled 33.9 million 20-foot containers.
The world's fourth richest country, Brunei, has extraordinary wealth owing to its extensive natural gas and oil reserves. The per capita GDP is $73,823.13 and the data indicates that both oil and gas reserves contribute more than 70% towards the nation's economy and around 90% of exports in terms of revenue. Moreover, the country seeks to encourage more and more investment, becoming self-sufficient in food sector, and observing high standards of administration in both private and public sectors.
Kuwait is a small but a wealthy economy. The country’s crude oil reserves, which are about 102 billion barrels, form more than 6% of the world reserves. The per capita GDP is $70,785.46 . Oil sector dominates the economy. Petroleum accounts for over half of the GDP of the country, 89% of the government income and 94% of export revenues. The Kuwait oil exports are oil products, chemical fertilizers, crude oil, liquefied petroleum gas, salt and chlorine.
Norway or the Kingdom of Norway has the world's sixth highest per capita GDP - $64,363.14 – allowing its five million population to reap the profit of its strong economy. Having large-scale reserves of natural gas, petroleum, minerals, seafood, and fresh water, Norway is the third biggest exporter of natural gas, and seventh largest oil exporter.
United Arab Emirates
UAE is a prosperous nation. It is an open economy and has a high per capita income. The per capita GDP of UAE is $63,180.83 . The small nation has 10% of the world’s total supply of oil reserves and the world’s fifth largest natural gas reserves. Oil, which is the mainstay of the UAE economy, accounts for around 30% of the country’s GDP.
Switzerland is among those nations that has the world's most stable economy with per capita GDP of $53,976.60 . The keys to the nation's economic livelihood include Swiss banking and financial institutions, highly evolved service sectors, dexterous labor force, and manufacturing industries based on high technology. Moreover, Switzerland has access to extraordinary capital to use for investment motives as world's wealthiest people and companies hold Swiss Bank accounts. Also, the nation's most popular cities – Geneva and Zurich – have repeatedly appeared in the top ten list of highest living standard cities in the world.
While most nations mentioned in the list have relatively small populations, it is striking to note that the Unites States, the world's biggest economy, can maintain per capita GDP of $53,000.97 . Having a population of more than 300 million people, the country maintain its biggest and technologically robust economy through its substantial indigenous automotive industry, democratic set up that guards entrepreneurial spirit, and technological sector that upholds innovation.
Hong Kong SAR
A free market economy and one of the world’s leading financial centers, the per capita GDP of Hong Kong is $52,984.06 . As per the Index of Economic Freedom, Hong Kong has had the highest degree of economic freedom in the world. Close ties to mainland China, virtually no public debt, a sound banking system and a huge amount of foreign exchange reserves are some of the positive points of the economy of Hong Kong.
10 Richest Countries in the World in year 2013
|Rank||Country||Capital||Currency||GDP (Per Capita $)|
|5||Brunei Darussalam||Bandar Seri Begawan||Brunei Dollar||54,114|
|6||United States||Washington D.C.||US Dollar||51,704|
|8||San Marino||City of San Marino||Euro||42,724|
* Though Hong Kong would appear at seventh place on this list with a GDP of $50,936 (per capita), it has not been shown as it a special administrative region of China.
Some Important Economic terms :
- Gross Domestic Product (GDP): It is an important indicator of the economic prosperity of a country and is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year.
- GDP per capita : It is a measure of the average welfare and affluence, or poverty, of residents of a country.
- Gross National Product (GNP): It is the Gross Domestic Product (GDP) plus net factor income from abroad and measures the monetary value of all the finished goods and services produced by the country's factors of production irrespective of their location.
- PPP (Purchasing Power Parity) GDP : PPP GDP is gross domestic product converted to international dollars using purchasing power parity rates.
- Nominal GDP : It is a gross domestic product (GDP) figure that has not been adjusted for inflation.
- Foreign Exchange Reserves : These are foreign currency assets held by the central banks of countries.
Last Updated : July 9, 2015