Richest Countries in the World

The incentives to grow wealth are multifaceted.   People in wealthier countries not only typically are healthier and live longer, but have the opportunity for experiences, comforts and lifestyle that otherwise would not exist.

They are two ways to measure the wealth of a country.  Gross Domestic Product (GDP) is the value of all goods and services produced by a country, and when divided by the population, calculates the average GDP per capita.  A second and more inclusive method is Gross National Income (GNI) which includes the value of income from enterprises owned within their home country and in others.   GNI per capita is a more accurate measure of wealth as it includes income available to the citizens derived both within and outside of their home country.

To identify the most wealthy countries in the world, 24/7 Wall Street reviewed GNI for almost 200 countries.  The cumulative GDP of the 25 richest countries in the world of almost $93 trillion makes up 80 percent of the $116.7 trillion GDP of all countries (those with available data).  Added also was the life expectancy at birth data sourced from the World Bank.  The table shows the 25 richest countries in the world based on Per-Capita Gross National Income (GNI).

 

To read the complete article click https://www.usatoday.com/story/money/2019/07/07/richest-countries-in-the-world/39630693/

Wealth is subjective.  While one person may view having a million dollars  as the mark of success, to others at least $1 billion is the ticket to entry.  For some people an extra $100 or $1,000 of income would make a material difference in their lives and for others that added income has minimal effect.

Just because a country is wealthy overall, however,  does not imply that most of the inhabitants are rich also.  While wealth is being created across the world, much of it is concentrated in the already wealthy, higher-income demographic.

Ted

Comments

  1. Rocky Navarro, Real Estate, Oil & Gas

    Dr. Ted, Please explain in a blog about DEFLATION and how the FED can use its tools to prevent it. Thanks, Rocky

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