Fluctuations in exchange rates can change a country’s ranking among the richest countries in the world, but may not affect its population’s standard of living. Gross National Product (GNP) is a widely accepted measure of success, but GDP per capita does not capture quality of life. Luxembourg, Qatar, Norway, Kuwait, UAE, Singapore, and the USA are among the richest countries based on their GDP per capita. These countries have highly developed economies, abundant natural resources, and low taxes.
The richest countries in the world can change often. Factors affecting that change include economic fluctuations such as changes in exchange rates. These fluctuations can change a country’s ranking from year to year, while often making little or no difference to the standard of living of its population.
While there are many ways to determine a country’s success, Gross National Product (GNP) is perhaps the most widely accepted measure. GDP represents the total amount of money a country’s consumers spend on all goods and services in a year, divided by that country’s population. GDP per capita only counts consumption which can be measured in money and usually does not capture the true quality of life in a country.
According to the CIA World Factbook, Luxembourg tops the list of the richest countries in the world. It has a per capita GDP of $80,800 US Dollars (USD). Once buoyed by the steel industry, its economy has been boosted by international banking and financial services. As a member of the European Union (EU), Luxembourg also has the advantage of the open European market.
Qatar is also one of the wealthiest nations in the world with a per capita GDP of $79,500 USD. Once a poor country, it has transformed financially following the discovery of oil and natural gas resources. With fewer than one million citizens, it is also one of the least taxed nations in the world.
Another of the richest countries in the world is Norway, with a per capita GDP of $55,600 USD. Norway is a highly developed country in Europe with a high cost of living and an abundance of oil exports and natural resources.
Kuwait also sits on the list of richest countries in the world with $55,300 USD in GDP per capita. One of the fastest growing economies in the Middle East, Kuwait imposes no taxes. In fact, about 80% of government revenue comes from oil exports.
The United Arab Emirates (UAE), another Middle Eastern country, comes in as one of the richest in the world with around $55,200 USD of GDP per capita. A small country with an abundance of oil and natural gas, it boasts a highly developed economy. It is perhaps most famous for its many man-made islands and is currently building the tallest structure in the world.
As of 2008, Singapore was the sixth richest country with $48,900 USD in GDP per capita. Regarded as one of the most business-friendly countries in the world, Singapore has the fourth largest shopping mall and busiest port in the world.
The United States of America (USA) ranks seventh with $48,000 USD in GDP per capita. Known for its large size and population, the United States is speculated to be home to more billionaires than any other country.
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