What does it mean for a nation to be rich or poor at a time of global pandemic? GDP per capita adjusted for relative purchasing power gives us an idea, albeit an imperfect one.
Would you rather be rich in a poor country or poor in a rich one? Measuring how rich a country is not that easy (spoiler: it is not just about GDP). Measuring how rich you are depends to a large degree on how rich and poor countries are defined.
If we simply consider a nation's gross domestic product—the sum of all goods and services produced by a country during one year—then we would have to conclude that the richest nations are exactly the ones with the largest GDP: United States, China, Japan, Germany. But how could the economies, for example, of Singapore or Luxembourg ever match that of such powerhouses when they are no more than small dots on the world map?
Another problem with GDP is that it does not measure wealth distribution. That is why a more accurate representation of people’s living conditions begins with dividing a nation's GDP by the number of people that live there: per capita GDP and its growth rate tell us much more about the social wealth potentially available to each person and whether this wealth is either increasing or decreasing over time.
|Click here to read more about the world's poorest countries.||Click here to read more details about the world's richest countries.|
However, using per capita GDP still poses a problem: the very same income can buy very little in some countries and go much further in others where basic necessities—food, clothing, shelter, or healthcare—cost far less. To gauge how wealthy a country’s citizens areit is necessary to understand how much they can buy. That is why, when comparing per capita GDP across countries, GDP should be adjusted for purchasing power parity, which helps us take into account the inflation rates and the price of goods and services in each given place.
When considering whether it is better to be rich in a poor country or poor in a rich one, the best chance of enjoying a superior standard of living is to reside in a richer nation no matter where a person falls on the income distribution scale. Then again, wealth for some without a good measure of equality for everyone is problematic, to say the least. The coronavirus pandemic proved it most strikingly. Low-income workers, often migrants, living in some very wealthy nations suddenly found themselves unemployed, homeless and stranded without much of a safety net. Many less affluent nations, in the meantime, bent over backwards to take care of all those in need during the crisis.
Because energy and food are essential goods with few substitutes, higher prices are particularly painful for low-income households, the IMF writes in World Economic Outlook July 2022 update: “When the price of other items, such as electronics, furniture, or entertainment, increases, families can simply reduce or even eliminate spending on them. For food, heating, and transportation—often essential to earn a living—this is much harder.” As a result,IMF economists say thecurrent situation poses a threat to both economic andsocial stability.
This is why, in the long run, it is better not only to be rich but to be egalitarian as well. Too much economic inequality stifles growth for all, political instability is more likely, healthcare care costs and mortality rates are higher, and so are crime and corruption rates. Being rich in a poor countryalso has costs.
|7||United Arab Emirates||78,255|
|11||Hong Kong SAR||70,448|
|14||Taiwan Province of China||68,730|
|61||Trinidad and Tobago||29,884|
|65||St. Kitts and Nevis||27,608|
|74||Antigua and Barbuda||21,890|
|88||Bosnia and Herzegovina||17,471|
|97||St. Vincent and the Grenadines||15,505|
|140||West Bank and Gaza||6,243|
|149||São Tomé and Príncipe||4,681|
|152||Republic of Congo||4,578|
|155||Papau New Guinea||4,299|
|189||Democratic Republic of the Congo||1,316|
|190||Central African Republic||1,102|
|—||Afghanistan, Lebanon, Syria, Ukraine||N.A.|
Source: International Monetary Fund, World Economic Outlook April 2022.Values are expressed in current international dollars, reflecting the corresponding exchange rates and PPP adjustments.
What is the poorest country in the world in 2022? ›
1. South Sudan. The Republic of South Sudan gained independence in July 2011, but has experienced a long history of conflict, displacement, and deepening humanitarian needs. As of 2021, the World Bank estimated that over 76% of South Sudanese are living in extreme poverty.What is the wealthiest country in the world 2022? ›
- United States: $20.89 trillion.
- China: $14.72 trillion.
- Japan: $5.06 trillion.
- Germany: $3.85 trillion.
- United Kingdom: $2.67 trillion.
- India: $2.66 trillion.
- France: $2.63 trillion.
- Italy: $1.89 trillion.
Burundi is the world's poorest country followed by Central African Republic, DR Congo, South Sudan and Somalia as the poorest. The richest countries are Luxembourg, Singapore, Ireland, Qatar and Switzerland. Soberingly, 19 of the 20 poorest countries are all located in Africa.What are the 5 most poorest countries? ›
- Somalia: GDP per capita of USD 303 in 2026. ...
- South Sudan: GDP per capita of USD 441 in 2026. ...
- Sierra Leone: GDP per capita of USD 532 in 2026. ...
- Malawi: GDP per capita of USD 606 in 2026. ...
- Central African Republic: GDP per capita of USD 624 in 2026.
Here are the 10 poorest countries:
- Burundi - $270.
- Somalia - $310.
- Mozambique - $460.
- Madagascar - $480.
- Sierra Leone - $490.
- Afghanistan - $500.
- Eritrea - $510.
- Central African Republic - $510.
With a GDP of 23.0 trillion USD, the USA is by far the world's largest economy in this ranking for 2021. It is followed by China in second place with a GDP of 17.7 trillion USD.What are the top 10 richest countries 2022? ›
According to McKinsey & Co, the top richest countries in the world are—China, the United States, Germany, France, the United Kingdom, Canada, Australia, Japan, Mexico, and Sweden.Which country is No 1 in world? ›
The overall ranking of Best Countries measure global performance on a variety of metrics. Switzerland is the best country in the world for 2022.Which country will be richest in 2050? ›
By 2050, China is forecasted to have a gross domestic product of over 58 trillion U.S. dollars.Who is richer China or USA 2022? ›
Answer: China is the world's most prosperous country. It just surpassed the United States as the world's most prosperous country. Answer: China, the United States, Germany, France, the United Kingdom, Canada, Australia, Japan, Mexico, and Sweden are the world's wealthiest countries, according to McKinsey & Co.
Who will be the richest country in 2030? ›
By 2030 China is likely to have cemented its position as the world's largest economy. If the experts at Standard Chartered are on the money, it's set to extend its lead significantly over the USA with a bumper GDP (PPP) of $64.2 trillion (£52.1tn), putting America's economy firmly in the shade.
Poverty Rate by Country 2022.
|Poverty Rate (WB)||58.90%|
|Data Year (WB)||2016|
|% Less than $10/day||84.71%|
|% Less than $5.50/day||70.93%|
The 50 richest countries in the world.
|5||Bermuda *||85,192 $|
- United States - $1.08 Tn.
- Germany - $215.02 Bn.
- Japan - $211.51 Bn.
- France - $148.94 Bn.
- United Kingdom - $130.68 Bn.
- Italy - $113.03 Bn.
- China - $89.65 Bn.
- Canada - $87.89 Bn.
Iceland stands at the top of countries with the lowest poverty rates with a poverty rate of 4.9% in 2021. In 2017, Iceland's poverty rate even hit 0%, according to the World Bank.Where does US rank in poverty? ›
Table 1. Extent of Poverty across 26 OECD Countries.
|Country||25 country average|
North America has the highest continental gdp per capita by both GDP Nominal and PPP in the world. With $46,160 in nominal terms, the per capita gdp of North America is 376% of the world GDP per capita.What are the 10 most poor countries? ›
- Democratic Republic of the Congo (DRC)
- Central African Republic.
- South Sudan.
Mapped: The 25 Poorest Countries in the World.
|Country||GDP per capita (USD)|
|Democratic Republic of the Congo (DRC)||$456.89|
Top 10 Countries with the Lowest Wealth Inequality (World Bank Gini index):
- Slovenia - 24.6%
- Czech Republic - 25.0%
- Slovakia - 25.0%
- Belarus - 25.3%
- Moldova - 25.7%
- United Arab Emirates - 26.0%
- Iceland - 26.1%
- Azerbaijan - 26.6%
Who will be the next superpower? ›
By 2050, more countries are likely to be defined as superpowers, joining the United States and creating a multipolar world order. Extrapolating current economic, geopolitical, and demographic trends would suggest that China is likely to become a new superpower, although its economy is currently faltering.Which country is growing fastest in the world? ›
- Guyana. Average growth 2022-2026: 25.8% ...
- Macao. Average growth 2022-2026: 11.9% ...
- Fiji. Average growth 2022-2026: 7.7% ...
- Niger. Average growth 2022-2026: 7.6% ...
United States. The United States of America is a North American nation that is the world's most dominant economic and military power.What's the richest city in the world? ›
“New York is the financial centre of the USA and the wealthiest city in the world by several measures. Perhaps most notably, total private wealth held by the city's residents exceeds US$3 trillion – higher than the total private wealth held in most major G20 countries.”Which country has the fastest growing economy in the world 2022? ›
- USA. Capital: Washington D.C. Area: 9.834 million km² ...
- China. Capital: Beijing. Area: 9.597 million km² ...
- Japan. Capital: Tokyo. Area: 377,975 km² ...
- Germany. Capital: Berlin. Area: 357,588 km² ...
- India. Capital: New Delhi. ...
- UK. Capital: London. ...
- France. Capital: Paris. ...
- Canada. Capital: Ottawa.
- Italy. #1 in Has great food. ...
- Mexico. #2 in Has great food. ...
- Spain. #3 in Has great food. ...
- Greece. #4 in Has great food. ...
- Thailand. #5 in Has great food. ...
- France. ...
- Turkey. ...
- Sweden. #1 in Quality of Life. #5 in Best Countries Overall. ...
- Denmark. #2 in Quality of Life. #10 in Best Countries Overall. ...
- Canada. #3 in Quality of Life. ...
- Switzerland. #4 in Quality of Life. ...
- Norway. #5 in Quality of Life. ...
- Finland. #6 in Quality of Life. ...
- Germany. #7 in Quality of Life. ...
- Netherlands. #8 in Quality of Life.
- United Kingdom. GDP per capita, Purchasing Power Parity in 2021: $49,675.3. ...
- France. GDP per capita, Purchasing Power Parity in 2021: $50,728.7. ...
- Canada. GDP per capita, Purchasing Power Parity in 2021: $52,085.0. ...
- Finland. ...
- Australia. ...
- Germany. ...
- Austria. ...
Who is the superpower in 2025? ›
India is expected to become a superpower by 2025 when its per capita income nears $5,000 from $1,000 right now, a panel of eminent speakers at the ET Leader2Leaderforum on the sidelines of the Nasscom India Leadership Summit 2011 which kicked off on Tuesday.Who has more money China or USA? ›
Comparing United States and China by Economy.
|Source||World Bank : Nominal, PPP, Nominal per capita, PPP per capita|
|Date||15 May 2021|
The United States is the richest country in the world with the highest GDP, as of 2021. China is the second richest country in the world with a $17.734 trillion GDP.Does the US owe China money 2022? ›
How much money does the U.S. owe to China? China owns roughly $1.08 trillion worth of U.S. debt. 2 This amount is subject to market fluctuations. The value will change whenever China trades Treasury securities or when the prices of those bonds change.Who will rule the world in 2050? ›
China, India, and the United States will emerge as the world's three largest economies in 2050, with a total real U.S. dollar GDP of 70 percent more than the GDP of all the other G20 countries combined. In China and India alone, GDP is predicted to increase by nearly $60 trillion, the current size of the world economy.Who will rule in 2050? ›
China is expected to hold on to the number one spot. In 2050, the Asian giant is forecast to have the largest economy on the planet. With an ageing population and an annual GDP growth rate averaging just 4.4%, however, China isn't projected to enjoy the exceptional economic growth it experienced during the 2000s.Is China a poor country? ›
China is now an upper-middle-income country. It will be important going forward that poverty alleviation efforts increasingly shift to addressing the vulnerabilities faced by the large number of people still considered poor by the standards of middle-income countries, including those living in urban areas.Is China poor now? ›
As of 2020, China has succeeded in eradicating absolute poverty, but not the poverty defined for upper middle-income countries which China belongs to. China still has around 13% of its population falling below this poverty line of $5.50 per day in 2020.Which race has the highest rate of poverty? ›
U.S. Poverty Statistics – Race
While the poverty rate for the population as a whole is 11.6% the rate varies greatly by race. Blacks have the highest poverty rate at 19.5% and Non-Hispanic whites have the lowest at 8.1%. The Poverty rate for Blacks and Hispanics is more than double that of non-Hispanic Whites.
Top 10 countries by GDP.
|Place in the ranking||State||GDP|
|1||USA||25.35 trillion dollars|
|2||China||19.91 trillion dollars|
|3||Japan||4.912 trillion dollars|
|4||Germany||4.256 trillion dollars|
Is India a No 1 country? ›
It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world.Which is richest country in Asia? ›
- Japan - $211.51 Bn.
- China - $89.65 Bn.
- India - $59.60 Bn.
- Turkey - $25.03 Bn.
- Pakistan - $13.14 Bn.
- Iran - $10.98 Bn.
- Indonesia - $10.44 Bn.
- South Korea - $9.00 Bn.
Luxembourg is the wealthiest country in the European Union, per capita, and its citizens enjoy a high. It is a major center for large private banking, and its finance sector is the biggest contributor to its economy. The country's main trading partners are Germany, France and Belgium.Who is richest man in the world? ›
- Elon Musk. Elon Musk is the co-founder and CEO of Tesla and is currently the richest person in the world, he has a net worth of $191.2 billion. ...
- Bernard Arnault & family. ...
- Gautam Adani. ...
- Jeff Bezos.
Even before the COVID-19 pandemic and the current cost-of-living crisis are accounted for, the data shows that 1.2 billion people in 111 developing countries live in acute multidimensional poverty.Is China poor country 2022? ›
According to the World Bank, more than 850 million Chinese people have been lifted out of extreme poverty; China's poverty rate fell from 88 percent in 1981 to 0.7 percent in 2015, as measured by the percentage of people living on the equivalent of US$1.90 or less per day in 2011 purchasing price parity terms, which ...Is India is poor in 2022? ›
The index, MPI 2022, takes into consideration three dimensions — health, education and standard of living — besides income poverty. There are 10 indicators under these on which the assessment ranks countries. But India still has nearly 229 million multidimensional poor, in absolute terms — the highest in the world.Is India a poor country 2022? ›
The World Inequality Report 2022 says the world's most extreme inequality has been observed in India. It notes India is a “poor country and very unequal, with an affluent elite”.Which 5 countries have the highest 2022 poverty? ›
- Madagascar - 70.70%
- Guinea-Bissau - 69.30%
- Eritrea - 69.00%
- Sao Tome and Principe - 66.70%
- Burundi - 64.90%
- Democratic Republic of the Congo - 63.90%
- Central African Republic - 62.00%
- Guatemala - 59.30%
Iceland stands at the top of countries with the lowest poverty rates with a poverty rate of 4.9% in 2021. In 2017, Iceland's poverty rate even hit 0%, according to the World Bank. Some factors contributing to low poverty are: Work Satisfaction.
Where is poverty the worst? ›
Poverty rates were highest in the states of Mississippi (19.58%), Louisiana (18.65%), New Mexico (18.55%), West Virginia (17.10%), Kentucky (16.61%), and Arkansas (16.08%), and they were lowest in the states of New Hampshire (7.42%), Maryland (9.02%), Utah (9.13%), Hawaii (9.26%), and Minnesota (9.33%).Who has the largest economy in the world? ›
1. United States: USD 29.3 trillion in 2026.What are the 10 largest economy in the world? ›
- United States. The real GDP of the US is estimated to be $20.94 trillion. ...
- China. The Chinese economy has witnessed astonishing growth over the last few decades. ...
- Japan. ...
- Germany. ...
- United Kingdom. ...
- India. ...
- France. ...
It is situated on the Indian Plate, projecting southwards into the Indian Ocean from the Himalayas. Geopolitically, it includes the countries of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.Is Pakistan a poor country? ›
In the last three decades, Pakistan's HDI has increased by nearly 40%. Approximately 38% of Pakistani citizens are living in multidimensional poverty. Another 13% are vulnerable to this status. From 2004 to 2015, the multidimensional poverty rate has dropped from 55% to its current rate at 38%.Is India a rich or a poor country? ›
Our country is rich, but the population is poor facing starvation, unemployment, poverty, inflation, casteism, untouchability and other factors that are not good for the progress of the society," he said. "There is a need to establish social and economic equality in the society.Which country is poor in Asia? ›
Myanmar. About 26% of Myanmar's population lives in poverty, particularly in rural areas, where about 70% of the population lives.Is India good for living? ›
Is India a good place to live? You'll get very different responses to this depending on who you ask. Unfortunately, most expats find the work-life balance can be poor even though the cost of living is low and pay can be very high.