The United States has large sums of money and huge public debt, while China is the world’s second-largest economy in terms of GDP and the world’s second-richest country. It is expected to surpass the US in the future to become the richest country in the world.
However, the reason why the United States and China top the list of the world’s richest countries is that so many poor people live within their borders, which has significantly reduced their per capita GDP. Take a look at how the world’s five richest countries rank in the International Monetary Fund’s estimates for 2014, adjusted for purchasing power parity, and see why their leaders have been so successful.
Now that we know who the world’s rich countries are in relation to GDP / capita, it is interesting to learn about their largest economies.
A Sovereign Wealth Among the Richest Countries
The nation’s advantage as the continent’s largest oil producer has helped it build a sovereign wealth fund of more than $860 billion. Norway’s economy as a whole has swelled by more than 12.2% over the past decade, marking an incredibly successful comeback compared to struggling European economies such as Spain and Italy as reported by Fool.
According to figures released by the International Monetary Fund (IMF) in April 2019, the country’s central bank expects oil and gas investment to increase by more than $1.5 trillion by 2020.
The United States rounds out the list of the ten richest nations with a net worth of $2.2 trillion, according to figures released in March 2019.
What does it mean when we say that a country is rich and income inequality is growing? Then it becomes clear why the rich are often the same as the small ones: the country’s economy is disproportionately large compared to its comparatively small population.
The Difference Between Wealth by GDP and Wealth by Economy
GDP per capita is sometimes used to describe the standard of living of the population, whereas higher GDP means higher standard of living.
Should we automatically assume that the total population is the same as in countries with particularly high numbers such as Luxembourg, Norway, Qatar and Switzerland? Statistics show that in 2014, Luxembourg (Norway), Qatar (Qatar) and Switzerland recorded an average annual income of $1.5 billion per person per year, the highest in the world.
As per Richest Country Reports, in April 2020, the average GDP per capita of all competing economies, based on the 100 richest countries, was $35,019 per country. According to statistics, Norway is the second richest country in the world, with an average annual income of $1.5 billion per person per year.
The dollar amount reflects average annual income in 2008, when the Great Recession gained momentum, and the height of the financial crisis in 2009.
Understanding China’s Economy and Wealth
China is frequently alluded to as the “world’s production line,” given its immense assembling and fare base. Notwithstanding, throughout the years, the job of administrations has step by step expanded and that of assembling as a supporter of GDP has declined moderately.
In 1980, China was the seventh-biggest economy, with a GDP of $305.35 billion, while the size of the U.S. at that point was $2.86 trillion.
Since it started showcase changes in 1978, the Asian monster has seen a monetary development averaging 10% yearly. Lately, the pace of development has eased back, in spite of the fact that it stays high in contrast with its friend countries.
The IMF extends a development of 5.8% in 2020, which would calm down to around 5.6% by 2023. Throughout the years, the distinction in the size of the Chinese and the U.S. economy has been contracting quickly.
In 2018, the Chinese GDP in ostensible terms remained at $13.37 trillion, lower than the U.S. by $7.21 trillion.
In 2020, the hole is relied upon to diminish to $7.05 trillion, and by 2023, the distinction would be $5.47 trillion. Regarding GDP in PPP, China is the biggest economy, with a GDP (PPP) of $25.27 trillion.
By 2023, China’s GDP (PPP) would be $36.99 trillion. China’s colossal populace cuts down its GDP per capita to $10,100.
The Average Annual Income of the 50 Richest Countries Have Increased
Brunei Darussalam has repeatedly made it into the top ten richest countries in the world in recent years. The average annual income of the 50 richest countries was $50,686 in 2009, a 25.5% increase over 2008.
How quickly has the concentration of wealth increased in each of these ten richest countries?
It is a robust Southeast Asian economy supported by high investment in education, health, infrastructure and infrastructure development. The country holds fifth place, largely due to its strong economic performance in recent years.
Norway is driven by a strong economy and a high level of international trade and investment, as well as a large number of foreign investors according to World Atlas.
But wealth inequality is widespread here, and the majority of the population actually earns no more than $80,000 a year. The richest country in the world is the second richest country in the world, behind the United States of America, with an annual income of 1.5 billion dollars.
GDP per capita often better reflects a country’s economic strength, but aggregate GDP tells a story. With a gross domestic product (GDP) of $83,400, the Green Island has an annual income of more than $1.5 billion and a population of more than 2.2 million.
With a population of 550,000, Luxembourg’s GDP of $64.16 billion means that the nation tops the list, with per capita GDP of $116,134 per person.
In Africa, the world’s richest country, Kenya, with an annual income of more than $1.5 billion, has a per capita GDP of about $15,848. His wealth averages $314 million, but ranks only ninth in total wealth, behind China, India, South Africa, and the United States.
The world’s rulers, such as the US, still rank in the top 10 by this measure, meaning that their wealth is roughly equal to that of the ten richest countries in Europe, Asia, and Latin America.
Wealth as Per GDP
In the Middle East, Qatar is the richest country in the world, with an annual income of more than $1.5 billion and per capita GDP of about $15,848. With a population of over 1,500,000 people, it is also one of the richest countries in the region.
Natural resources bring tens of billions of dollars to a country of fewer than 3 million people every year.
The country has a population of about 1.5 million people and a per capita GDP of 15,848 dollars, and the World Bank database is also the second richest country in the Middle East, after Saudi Arabia.