What do we mean when we say that this or that country is the richest in the world, especially in an era of growing income inequality between the rich and everyone else? Usually we are talking about its gross domestic product (GDP), which measures the value of all goods and services produced in the country. It is on GDP that the rating of the economies of the world is built.

Dividing a country's GDP by the number of permanent residents is the best way to determine how rich or poor a population of one country is relative to another.

The reason why “rich” countries are often equal to “small” becomes clear: the economies of these countries are disproportionately large compared to their relatively small population. However, only taking into account the level of inflation and the cost of local goods and services can we get an accurate picture of the average standard of living in the country. The resulting figure is called Purchasing Power Parity (PPP).

10 richest countries in the world in 2019

10. Hong Kong

GDP-PPP - $ 66,517

The former British colony and the current special administrative region of China is the gateway to the mainland and the main financial center of Asia.

Thanks to its good infrastructure and numerous tax benefits, Hong Kong is ranked 4th among 190 countries in the World Bank's ease of doing business index. It is also among the top 5 countries with the lowest crime rates.

Hong Kong is an incredibly popular place to start a startup, as foreigners are allowed to own 100% of their business without obtaining citizenship or a residence permit. As a result, the island as a whole is extremely rich, although, according to government statistics, one in five Hong Kong residents lives below the poverty line.

9. Kuwait

GDP-PPP - $ 67,969

This small state on the northern outskirts of the Persian Gulf is one of the most advanced and democratic in the Middle East.

In 1938, oil was discovered under the Arabian sands covering most of Kuwait. A lot of oil: about 8% of world reserves.

Today, the Kuwaiti oil industry accounts for almost half of the country's GDP and more than 90% of its exports. However, the fall in oil prices in recent years has become a concern for wealthy Kuwaitis: in 2015, the government announced the first budget deficit in the last decade.

Since then, the country has taken steps to diversify its economy, allowing 100% foreign ownership in a number of sectors and offering investors various tax benefits. However, such changes take time to bear fruit. In the meantime, the Kuwaiti parliament has adopted another budget forecasting a revenue deficit for the current fiscal year.

8. United Arab Emirates

GDP-PPP - $ 70,474

Once upon a time, the economy of this country was based on agriculture, fishing, and the pearl trade. But that all changed in the 1950s, when rich oil reserves were discovered in the UAE.

Since then, the UAE has been among the top 10 richest countries in the world, and workers from all over the world come to this Islamic country, seduced by tax-free salaries and year-round sunshine. According to statistics, about 20% of the people living in the country are actually local residents.

The economy of the United Arab Emirates is also becoming increasingly diversified. Outside the traditionally dominant hydrocarbon sector, tourism and construction, as well as the commercial and financial sectors, are rapidly developing.

7. Norway

GDP-PPP - $ 76,738

One of the happiest countries in the world is the largest oil producer in Western Europe.

At the same time, Norwegian politicians know that large GDP growth is fraught with great responsibility: contrary to many other rich countries, high GDP per capita in Norway really reflects the financial well-being of local residents.

6. Ireland

GDP-PPP - 82,439 dollars.

The economy of the European Union is in a difficult period. Amid the uncertainties surrounding Brexit, sanctions against Russia and Italy's economic problems, Eurozone officials were forced to lower their growth forecast for 19 member countries to 1.1%.

However, the Irish economy is only continuing to grow. It is expected that by the end of 2019 it will grow by more than 4%, strengthening its role as the fastest growing economy in the Eurozone after the 2008 financial crisis.

5. Brunei

GDP-PPP - $ 83,777

The top 5 richest countries in the world are opened by a country rich in oil and natural gas. The condition of the Brunei Sultan Hassanal of Bolkiah is estimated at $ 20 billion, which is 40 times more than that of the British Queen Elizabeth.

Despite Bolkiah’s wealth and per capita GDP, malnutrition in Brunei is common. Approximately 440,000 people — 40% of the country's population — earn less than $ 1,000 a year.

4. Singapore

GDP-PPP - 103,717 dollars.

How did such a small city-state become so rich? After all, when Singapore became independent from Malaysia in 1965, half of its population was illiterate.

With virtually no natural resources, Singapore came out on top in the world thanks to the hard work of the people and the smart policies of the authorities. Great efforts were focused on the development of the industrial sector.

With the help of tough measures, Lee Kuan Yew achieved the rule of law, despite the ranks and wealth. As a result, there is virtually no corruption and arbitrariness in Singapore. And the Singapore economy grew on average by 9% per year.

Incredible preferences and tax breaks have been granted to foreign corporations. Currently, Singapore has become one of the business centers of Asia.

3. Luxembourg

GDP-PPP - $ 108,813

You can visit Luxembourg with its old castles and beautiful countryside, cultural festivals or gastronomic delicacies. Or you can simply open an offshore account through one of its banks, as many do, and never visit Luxembourg personally.

Although it would be a pity, because this country with a population of about 600,000 people, located in the heart of Europe, has a lot to offer both tourists and its citizens.

Luxembourg uses most of its wealth to improve housing, healthcare and education for citizens who today have the highest standard of living in the Eurozone.

2. Macau

GDP-PPP - $ 122,201

The gaming industry is the main source of income for this special administrative region of the People's Republic of China.

More than 40 casinos have been built on a narrow peninsula south of Hong Kong with a population of just over 600,000. As a result, Macau is almost literally a money making machine.

According to statistics, gambling accounts for about 40% of Macau's GDP, and up to 70% of government revenue.

1. Qatar

GDP-PPP - $ 134,623

About $ 15,000 on average is how much each Qatari citizen has lost every year since the start of the fall in hydrocarbon prices in 2014. Nevertheless, the country's total GDP per person in 2019 is still forecasted to be above $ 134,000, which is slightly higher than last year.

The reserves of oil, gas and oil in Qatar are so large, and its population is so small (a little more than 2.6 million people) that it tops the list of the richest countries in the world for 20 years. This feat is even more remarkable given that Saudi Arabia and its allies launched the blockade of Qatar in 2017.

Russia's place in the ranking of the richest countries

As for Russia, it occupies the 55th line of the rating with a GDP-PPP of $ 30,284.

The closest neighbors Belarus and Ukraine are located at 69 and 115 places, respectively. Burundi closes the list (191 places).

List of countries by GDP (PPP) for 2019

The PPP calculated in international dollars is tied to the exchange rate of US dollars at the end of last year.

Watch the video: TOP 50 ECONOMIES - 2020 Nominal GDP (May 2025).