While undoubtedly an imperfect indicator, GDP per capita is a helpful stand-in for gauging a nation’s standard of life. We revised our well-read article to determine which of the 132 countries we cover would have the greatest GDP per capita in 2025.
Richest Countries in the World 2023 The forecasts are based on the individual estimates of more than 1000 famous investment banks, think tanks, and expert economic forecasting companies. They are consensus forecasts. Due to their incredibly strong institutions, stable political situations, and high-performing educational systems, small European countries lead the ranking, with Singapore and the United States rounding out the top seven.
1. Luxembourg: 143,203 dollars per person in 2025
In terms of nominal GDP, we predict Luxembourg’s economy will be the richest in the world in 2025. (at market exchange rates). The country is home to numerous significant E.U. institutions and boasts a sizable finance sector due to a favorable tax structure. Luxembourg’s economic success in recent decades is due to a thriving services sector. Owing to the sustained vitality of the services sector and rapid population development, the economy is expected to grow faster than the E.U. average in the future years, even though it probably shrank due to Covid-19 last year.
Luxembourg is one of the world’s greatest financial centers in the world because of its highly qualified workforce from the “Grande Region,” as well as its notorious tax regulations. With more than EUR4.1 trillion in assets under management, it is a global leader in the investment fund sector. It is Europe’s largest captive reinsurance center and international private banking hub. In Luxembourg, there are about 3,900 registered funds. There were 133 banks in Luxembourg as of 2018, 40 of which are international bank branches. The banks’ total assets are estimated to be around EUR 760 billion. Katharina Koenz is an economist with Oxford Economics.
2. Ireland, with a 2025 per-capita income of USD 112,769
Ireland has recently transformed from one of the poorest to one of the wealthiest E.U. countries thanks to an export-oriented economic strategy and tremendous success in luring FDI, especially from large multinationals. Ireland enjoys favorable tax laws, a knowledgeable English-speaking workforce, a stable economic climate, and close relations with the United States. Ireland is expected to continue expanding steadily throughout our forecast horizon, supported by significant inward migration and investment. However, dangers include increased trade tensions with the U.K. due to Brexit and a potential decline in the nation’s tax competitiveness. The substantial presence of multinational corporations in the country further complicates the interpretation of national account data.
“The distortionary impacts of balance-sheet moves of overseas multinational corporations with Irish headquarters make it difficult to calculate Ireland’s economic growth. Because of these distortions, Ireland’s official GDP estimates are not only a volatile indicator of domestic activity but also vulnerable to regular, significant revisions. This is especially evident in the external sector, where official export growth figures have risen during the pandemic due to balance-sheet changes at major businesses. The technology and pharmaceutical companies that control Ireland’s multinational corporations have so far fared reasonably well. It is predicted that the substantial losses in real private consumption and overall fixed investment have been more than offset by improved export performance, greater government spending, and a double-digit import decline. In the Economist Intelligence Unit
3. Switzerland: 96,788 dollars per person in 2025
A strong institutional base, a stable and hospitable corporate environment, and an exceptionally high-performing educational system all support Switzerland’s economy. Additionally, the nation benefits from a robust industrial base and a prime location at the crossroads of Europe’s biggest national markets. Switzerland fared reasonably well during the Covid-19 crisis because of considerable public assistance and fewer limitations than other countries. The economy is expected to resume a steady, albeit unspectacular, growth trajectory. Still, there are dangers due to tensions with the E.U. over the bilateral relationship and exposure to foreign shocks.
The level of activity in Switzerland at the end of the third quarter was significantly higher than that of its European neighbors compared to the position at the end of 2019. We project an overall 3.2% GDP decrease for 2020. Once the Covid vaccination eliminates any chance of a third pandemic wave, the recovery in 2021 should be strong, especially in the year’s second half. For the entire year 2021, 3.1% growth is what we anticipate. Charlotte de Montpellier, an ING economist
4. Norway: $95,165 per individual
Norway’s economy was completely revolutionized when oil and gas were discovered in the North Sea in the 1960s. As a result, the government created the largest sovereign wealth fund in the world, which is now worth over USD 1 trillion. Even though the services sector now accounts for over 60% of GDP and is the largest economic sector, energy is still a vital part of today’s economy. Norway’s economy, less impacted by COVID-19 than other European economies, is anticipated to resume growth in 2021 due to rising oil prices and improving domestic demand.
“We anticipate a robust revival in the internal Norwegian economy […]. Due largely to the government’s generous unemployment benefits, household earnings have maintained a healthy level during the pandemic. The decrease in household spending on services and travel last year resulted from this. However, the property market is expanding, consumer confidence is high, and goods spending is still robust. Therefore, we think that once restrictions are eliminated, the underlying consumer demand will be strong and play a substantial role in economic recovery. Additionally, businesses profit from the considerable government assistance that has prevented an increase in bankruptcies. Further, short-term tax adjustments for the oil sector have boosted investment plans and avoided a greater business activity fall. Experts at Swedbank
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5. Denmark: 78,068 dollars per person
The high level of life in the economy can be attributed to efficient government management, improved human capital, and a favorable business climate. As part of the government’s effort to become carbon neutral by 2050, Denmark has a robust services sector, is a net exporter of food, and boasts a booming renewable energy industry. The economy should resume a strong growth trajectory during our forecast horizon, supported by favorable demographics, healthy consumption, and sound investment, albeit suffering a setback in 2020 due to the coronavirus epidemic. Nevertheless, a risk is a high level of household debt.
“We recently updated our population projections, considering increased migrant arrivals and labor force changes that will raise the retirement age from 65 to 67 by 2022. This has increased the potential of the Danish economy, and the new administration’s intention to make skilled immigration more welcome should have a positive impact in the future. The primary reason for the growing contribution of equilibrium employment to potential output growth is a rising participation rate, especially among older employees. This ought to encourage growth with more possibilities. Rory Fennessy is an economist with Oxford Economics.
6. The United States: 77,653 USD per person.
The United States is one of the richest nations in the world in terms of GDP per capita thanks to its leadership in several domains of cutting-edge technology, its robust financial markets, its flexible labor market, and the strict rule of law. The same causes should strengthen the economy over the coming years and ensure that the United States stays one of the richest countries in the world, while a significant fiscal stimulus should give it an additional lift. However, a deeply fragmented political landscape, high debt levels, stark socioeconomic disparities, and tensions with China all cast a pall over the future.
“Increasing budgetary constraints will continue to be mitigated by the diversity, vitality, and competitiveness of the American economy, the U.S. dollar’s position as the world’s major reserve currency, and the size and depth of the U.S. Treasury market. The fiscal health of the United States is, however, declining. This decline is anticipated to quicken over time as recurring fiscal deficits are caused by rising entitlement spending related to the aging population, debt service obligations, and relatively low government revenue levels. Loss of fiscal and institutional strength would be indicated by dwindling trust in U.S. officials’ ability to take effective action in the upcoming years to cut federal government budget deficits and the continuous rise in the debt burden. – Moody’s analysts
7 .Singapore: $75,250 per person
The fledgling sovereign republic of Singapore was a tiny third-world nation with few natural resources and simmering ethnic conflicts when it was expelled from Malaysia in 1965. In just 50 years, Singapore has become one of the richest countries in the world in terms of per capita income, thanks to decades of export-oriented prosperity that saw significant investments in both physical and human capital as well as the development of a top-notch corporate climate. Due to its open economy, Singapore was relatively hard hit by Covid-19 in 2020, but from 2021 onward, economic activity should recover quickly. Growth is anticipated to be noticeably faster than most other developed economies over our forecast horizon, thanks partly to the government’s emphasis on long-term policymaking. However, threats to the projection include more deglobalization and a sharp slowdown in labor force growth.
“The [2021] Budget will work to create three enablers: (1) fostering global innovation and collaboration, (2) funding enterprises, and (3) fostering the skills, talents, and creativity of employees. Singapore’s Green Plan 2030 might use further clarification. The Covid-19 epidemic has expedited technical advancements, induced enormous changes on the economic and social fronts, and produced new international arenas for competition and collaboration. The government will be able to support Singapore’s recovery from the Covid-19 pandemic through the “Emerging Stronger Together” budget for 2021, invest in economic transformation, and set up Singapore for long-term success. – Barnabas Gan, a United Overseas Bank economist
