Luxembourg is the world’s richest country in terms of GDP per capita. Luxembourg’s GDP per capita was 116,921 US dollars in 2020. Switzerland, Ireland, Norway, and the United States of America round out the top five countries.
What accounts for Ireland’s high GDP?
The fundamental reason for Ireland’s high GDP growth rates is that, in recent years, a number of large multinational firms have transferred their economic activities, and more especially their underlying intellectual property, to Ireland, largely due to low corporate tax rates.
Why is Ethiopia expanding so quickly?
Ethiopia’s strategic location as a launching pad in the Horn of Africa, near to the Middle East and its markets, provides it strategic superiority. Ethiopia is a landlocked country that shares borders with Eritrea, Somalia, Kenya, South Sudan, and Sudan, and has relied on Djibouti’s main port for international trade for the past two decades. With the recent Eritrean peace accord, Ethiopia is expected to regain access to the Eritrean ports of Assab and Massawa as well.
Ethiopia is Africa’s second most populous country after Nigeria, with 115 million inhabitants (2020), and the region’s fastest-growing economy, with 6.1 percent growth in FY2019/20. It is, nevertheless, one of the poorest, with a gross national income per capita of $890. By 2025, Ethiopia wants to be classified as a lower-middle-income country.
Ethiopia has been one of the world’s fastest growing countries over the past 15 years (at an average of 10 percent per year). Capital accumulation, particularly through public infrastructure projects, was a major driver of growth, among other things. Due to COVID-19, Ethiopia’s real GDP growth slowed in FY2019/20 and even more in FY20220/21, with growth in industry and services falling to single digits. Agriculture, which employs more than 70% of the population, was unaffected by the COVID-19 epidemic, and its contribution to growth improved marginally in FY2019/20 compared to the previous year.
Between 2010 and 2020, persistent strong economic growth led in positive trends in poverty reduction in both urban and rural areas. The percentage of the people living in poverty has reduced from 30% in 2011 to 24% in 2016, and human development indicators have improved over time. Despite this, many flaws remain. Inequality is on the rise, owing to the growing discrepancy between urban and rural areas. The bottom 10% of the population has not grown in terms of consumption (as of 2005), notably in rural areas, and inequality is on the rise. Furthermore, COVID-19 has exacerbated existing flaws.
The government has unveiled a new 10-year development plan that will run from 2020/21 through 2029/30 and is based on the 2019 Home-Grown Economic Reform Agenda. The plan intends to maintain the phenomenal growth achieved during the preceding decade’s Growth and Transformation Plans while easing the transition to a more private-sector-driven economy.
Ethiopia’s key problems include maintaining positive economic growth and accelerating poverty reduction, both of which necessitate significant progress in job creation and stronger governance to guarantee that growth is equitable across the country. The government spends a large portion of its budget on anti-poverty initiatives and investments. Large-scale donor financing will continue to play an important role in funding pro-poor activities in the near future. The following are some of the most significant challenges:
- Ethiopia, like the rest of the world, has been hit hard by the COVID-19 pandemic’s catastrophic social and economic consequences. While exports and foreign direct investment have recovered in 2020/21, and jobs have recovered, there are likely to be some long-term scars. Urban employment has not entirely recovered, some people and businesses continue to report income losses, and poverty levels are projected to have risen.
- The battle, which began in November 2020, is expected to have an impact on agriculture productivity and food security in the country’s north, as well as stymie economic recovery.
- Ethiopia’s Human Development Index is 0.38, implying that a kid born today in Ethiopia will be 38 percent as productive as if he or she had access to a complete education and good health. This is lower than the Sub-Saharan Africa average, but slightly higher than the low-income country average. Learning poverty affects 90% of children under the age of five, and 37% of children under the age of five are stunted.
- Ethiopia has been dealing with the largest locust invasion in decades since 2020. This might jeopardize Ethiopia’s development progress and jeopardize millions of Ethiopians’ food security and livelihoods.
- A nascent private sector whose ability to grow and create jobs has been hampered by business climate and competitiveness concerns.
- The growing workforce (roughly 2 million per year) puts strain on the labor market’s absorption capacity, necessitating job improvement while also providing enough new jobs.
Which country owes the most money?
What countries have the world’s largest debt? The top 10 countries with the largest national debt are listed below:
With a population of 127,185,332, Japan holds the world’s biggest national debt, accounting for 234.18 percent of GDP, followed by Greece (181.78 percent). The national debt of Japan is presently $1,028 trillion ($9.087 trillion USD). After Japan’s stock market plummeted, the government bailed out banks and insurance businesses by providing low-interest loans. After a period of time, banking institutions had to be consolidated and nationalized, and other fiscal stimulus measures were implemented to help the faltering economy get back on track. Unfortunately, these initiatives resulted in a massive increase in Japan’s debt.
The national debt of China now stands at 54.44 percent of GDP, up from 41.54 percent in 2014. China’s national debt currently stands at more than 38 trillion yuan ($5 trillion USD). According to a 2015 assessment by the International Monetary Fund, China’s debt is comparatively modest, and many economists have rejected concerns about the debt’s size, both overall and in relation to China’s GDP. With a population of 1,415,045,928 people, China currently possesses the world’s greatest economy and population.
At 19.48 percent of GDP, Russia has one of the lowest debt ratios in the world. Russia is the world’s tenth least indebted country. The overall debt of Russia is currently about 14 billion y ($216 billion USD). The majority of Russia’s external debt is held by private companies.
The national debt of Canada is currently 83.81 percent of GDP. The national debt of Canada is presently over $1.2 trillion CAD ($925 billion USD). Following the 1990s, Canada’s debt decreased gradually until 2010, when it began to rise again.
Germany’s debt to GDP ratio is at 59.81 percent. The entire debt of Germany is estimated to be around 2.291 trillion ($2.527 trillion USD). Germany has the largest economy in Europe.
What are the world’s top ten economies?
These figures are from the International Monetary Fund, and they were last updated in October 2020. The two figures represent nominal GDP and GDP adjusted for purchasing power parity. Rather than using simple market exchange rates, the latter considers a country’s inflation rates as well as relative costs of products and services. The nominal GDP, on the other hand, is more generally used to indicate a country’s overall economic figure. Create an account to begin trading on global assets such as stocks, indices, currencies, and more.
Which country is the most powerful in the world?
In the 2021 Best Countries Report, Canada wins the top overall rank as the world’s number one country for the first time. After coming in second place in the 2020 report, Canada has now eclipsed Switzerland in the 2021 report, with Japan, Germany, Switzerland, and Australia following closely behind.
Who is wealthier, the United Kingdom or Ireland?
According to IMF and World Bank figures from 2015/2016, Ireland is far wealthier (living standards are significantly higher) than the United Kingdom, France, or even Germany.
Are the Irish well-off?
The cause, according to historian R. F. Foster, was a mix of a new sense of initiative and the entry of American businesses like Intel. Low taxation, pro-business regulatory regimes, and a young, tech-savvy workforce, he believes, were the most important causes. The Industrial Development Authority provided considerable incentives to several multinationals, making the decision to conduct business in Ireland even easier. Furthermore, participation in the European Union was beneficial, since it provided profitable access to markets previously exclusively accessible through the United Kingdom, as well as massive subsidies and investment capital into the Irish economy.
Consumer spending, building, and company investment all increased, which helped the economy. Since 1987, a fundamental aspect of economic policy has been Social Partnership, which is a neo-corporatist series of voluntary ‘pay pacts’ between the Government, employers and trade unions. The Celtic Tiger, a reference to East Asian tiger economies, was the period of significant economic growth from 1995 to 2000.
GDP growth remained strong, with rates of around 6% in 2001, over 4% in 2004, and 4.7 percent in 2005. With rapid expansion came rapid inflation. Dublin had significantly higher prices than the rest of the country, particularly in the property market. Property prices, on the other hand, were declining as a result of the recent economic downturn. The annual rate of inflation was 4.4 percent (as measured by the CPI) or 3.6 percent (as measured by the HICP) at the end of July 2008, a modest decrease from the previous month.
Ireland is one of the wealthiest countries in the OECD and the EU-27, with a GDP per capita position of 4th in the OECD-28. Despite significant increase in recent years, Ireland stands below the OECD average in terms of GNP per capita, a better indicator of national income, at 10th in the OECD-28 rankings. Due to the vast number of international companies based in Ireland, GDP is much higher than GNP (national income). According to a 2005 research published by The Economist, Ireland has the best quality of life in the world.
Several underlying imbalances were concealed by the upbeat news and economic statistics. The construction industry, which is inherently cyclical, accounted for a large portion of Ireland’s GDP. The over-exposure of the Irish economy on building, which now poses a threat to economic growth, has been emphasized by a recent drop in residential property market sentiment. Despite several years of economic progress and major gains since 2000, Ireland’s population is somewhat more vulnerable to poverty than the EU-15 average, with 6.8% experiencing “consistent poverty.”