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.
In 2019, which country has the highest per capita GDP?
In the nominal method, Luxembourg ranks first in the world gdp per capita ranking 2019, followed by Macao SAR, China. Macao SAR, China has the greatest GDP per capita in terms of purchasing power parity, followed by Luxembourg. In both ways, Switzerland (3,6), Ireland (4,5), Norway (5,8), the United States (7,9), Singapore (8,3), and Qatar (9,4) are among the top ten richest economies. The top ten nominal rankings are completed by Iceland (number six) and Denmark (number ten), while the top ten ppp rankings are completed by the United Arab Emirates (number seven) and Brunei Darussalam (number ten).
In the top ten nominal rankings, Ireland surpassed Norway, and the United States advanced two spots by swapping places with Qatar in 2019 compared to 2018. The Netherlands, Hong Kong SAR, and Canada surpassed Sweden, Finland, and Belgium in the top 11-20, respectively. In 2019, the rankings of 148 economies out of 194 changed. Ukraine is the top gainer in the ranking, up nine places, followed by Suriname (+7), Turkmenistan (+6), and Dominica (+6). Venezuela dropped 11 places, followed by Equatorial Guinea (-10) and Zambia (-10). (-8).
Brunei Darussalam has replaced Hong Kong in the top ten ppp rankings. Denmark passes the Netherlands in the top 11-20. Out of 192 economies, 126 have improved their ranking, with Turkmenistan improving by a massive 17 places, followed by Rwanda (+6). Venezuela dropped 12 spots, trailed by Iran (-9), Palau (-9), Lebanon (-8), and Bhutan (-8). (-7).
The rankings of economies on a nominal and ppp basis varies significantly. Brunei Darussalam (+22) and the United Arab Emirates (+15) are not even in the top 20 nominally, but they are in the top 10 ppp list due to their high ppp conversion rate. Singapore and Qatar are ranked five places higher in the top ten ppp list. Taiwan has also improved significantly, from 39 in nominal to 19 in ppp. Iceland has risen seven positions in the top ten nominal list, while Denmark has risen four places. Sudan (+37) is the country that has improved the most in terms of ppp rank compared to its nominal position. In the ppp ranking, nine economies have risen more than 20 places. The biggest drop in the ppp ranking is Barbados (-35), followed by Nauru (-32). Six economies have risen more than 30 places in the nominal rankings. Because ppp numbers are not available, one economy has been removed from the calculation of PPP-Nominal.
This ranking is based on data from the World Bank and the International Monetary Fund for the years 2018 and 2019. The World Bank’s data has been given priority. Data from the IMF has been listed if data from the World Bank is not available for any economy or year.
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 Tajikistan so impoverished?
Tajikistan is located in Central Asia, between Afghanistan, China, Kyrgyzstan, and Uzbekistan, and is surrounded by a vast mountain range. Major oil and natural gas deposits have been discovered in Tajikistan in the last decade, rekindling hopes of reviving the country’s ailing economy and returning economic power to the Tajiks. Tajikistan had roughly 27.4 percent of its population living below the national poverty threshold as of 2018. The following are ten statistics about poverty in Tajikistan:
facts about poverty in Tajikistan
- Not all parts of the country are affected by poverty in the same way. In 2018, the poverty rate in Sugd’s northwest region was 17.5 percent. The Districts of Republican Subordination, just below, had a percentage of almost double that, at 33.2 percent.
- Poverty appears to be more acute in rural Tajikistan than in metropolitan areas. Cotton farming, one of Tajikistan’s principal cash crops, has been demonstrated to do little to reduce poverty levels or lift people out of poverty. Those with non-agricultural occupations in metropolitan regions like as Dushanbe, the capital, might move to Russia to find work. This happens frequently. In 2018, the poverty rate in urban Tajikistan was at 21.5 percent, while rural Tajikistan had a rate of 30.2 percent.
- In Tajikistan, the rate of poverty alleviation has slowed. Poverty rates fell from 83 percent to 31 percent between 2000 and 2015. Since 2014, the annual decrease in the national poverty rate has slowed to 1%.
- The lack of job creation and stagnant pay growth are to blame for the declining rate of poverty alleviation. Due to a lack of new and better opportunities to stimulate the economy, a large portion of the workforce seeks work in Russia, which does little to help Tajikistan’s economy.
- According to reports, 75% of households are concerned about covering their family’s basic needs in the coming year. Tajikistan is the poorest and most remote of the former Soviet Union’s sovereign states. More than 95 percent of households failed to meet the minimal level of food consumption to be considered appropriately sustained, according to the first nationally conducted study since the war ended and Tajikistan attained independence.
- Tajikistan has a high rate of stunting and malnutrition among children, which has been linked to insufficient access to clean water and food. Many families spend more money on drinking water than they can afford. For the 64 percent of Tajiks who live below the national poverty line, this means suffering additional costs on top of a daily income of less than $2.
- There are just 163 places to dwell for every 1000 people. With 1.23 million dwelling units, Tajikistan has the smallest housing stock in Europe and Central Asia. This is largely due to the government’s inability to offer public housing, while private owners lack the financial means to invest in or maintain their houses.
- Tajikistan’s population is 35 percent under the age of 15. This percentage is around 17% among the world’s wealthiest countries. A large number of young people in the population means more difficulties for the rising workforce as they try to make ends meet, especially in a place where the economy may not be able to respond. This might exacerbate Tajikistan’s economic stagnation, with disgruntled young workers fleeing to other countries, as many are already doing.
- It’s possible that up to 40% of Tajiks in Russia are working illegally. Tajikistan is reliant on Russian remittances. This is in addition to Russia’s increasingly stringent administrative procedures for foreign workers. Because of these two factors, the Russian Ministry of Internal Affairs’ estimate of one million Tajiks working in Russia per year is suspect. In Tajikistan, between 30 and 40 percent of households have at least one family member working overseas.
- As of 2015, Tajikistan had a literacy rate of 99.8%. Primary education is compulsory, and literacy is strong, albeit young people’s skill levels are declining. This is due to economic needs driving young people away from their education in pursuit of a source of income to help them meet their basic necessities.
Since attaining independence in 1991, Tajikistan has been working its way out of poverty. The country’s over-reliance on remittances, on the other hand, has caused its economy to stagnate. As a result, there is a hungry workforce and a scarcity of jobs to feed them. Gurdofarid is a non-profit organization that aims to empower Tajik women by teaching them the skills they need to find work in their own nation.
Why is Ethiopia expanding so quickly?
Ethiopia’s strategic location as a launching pad in the Horn of Africa, close to the Middle East and its markets, gives it strategic dominance. 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 programs and investments. Large-scale donor support will continue to provide a significant contribution in the short term to cover the cost of pro-poor projects. 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 is the poorest in the world?
Burundi, a small landlocked country ravaged by Hutu-Tutsi ethnic conflict and civil violence, has the terrible distinction of being the poorest country on the planet. Food scarcity is a serious concern, with almost 90 percent of its approximately 12 million residents reliant on subsistence agriculture (with the overwhelming majority of them surviving on $1.25 a day or less), and food insecurity is about twice as high as the norm for Sub-Saharan African countries. Furthermore, access to water and sanitation is still limited, and only about 5% of the population has access to electricity. Needless to say, the epidemic has worsened all of these issues.
How did things get to this point, despite the fact that the civil war officially ended 15 years ago? Infrastructure deficiencies, widespread corruption, and security concerns are all common causes of extreme poverty. In 2005, Pierre Nkurunziza, a charismatic former Hutu rebel who became president, was able to unite the country behind him and begin the process of reconstructing the economy. However, in 2015, his announcement that he would run for a third termwhich the opposition claimed was illegal under the constitutionreignited old feuds. Hundreds of people were killed in fighting, and tens of thousands were internally or externally displaced as a result of the failed coup attempt.
Nkurunziza died in the summer of 2020, at the age of 55, from cardiac arrest, while it is widely assumed that Covid-19 was the true reason. Days later, Evariste Ndayishimiye, an ex-general designated by Nkurunziza to succeed him when his term expired, was sworn in. His track record has been mixed so far. While he, like his predecessor, minimized the virus’s severity, and claims of human rights violations continue to emerge from the country, he made an effort to relaunch the economy and mend diplomatic relations with his African neighbors, particularly the West. His efforts were rewarded: the United States and the European Union recently withdrew financial restrictions imposed in the aftermath of the 2015 political turmoil, resuming aid to Burundi. Could this be a watershed moment for the world’s poorest country?
What makes the Swiss economy so strong?
- Switzerland has the world’s second-highest per capita GDP (USD 86,850 in 2020 based on IMF statistics).
- The services sector accounts for over 74% of Swiss GDP, while industry accounts for 25%. The agricultural industry makes up less than 1% of GDP.
- Switzerland’s biggest trading partner is the European Union. Around 66% of Swiss imports come from the EU, while 43% of Swiss exports go to EU countries.
- The vast majority of Swiss firms (almost 99 percent) are small and medium-sized enterprises (SMEs) with fewer than 250 employees.
- Even throughout the COVID-19 crisis, Switzerland’s governmental debt remained modest in comparison to other countries. Gross government debt (before deducting financial assets) was around CHF 100 billion at the start of 2021, accounting for 15% of GDP.
- Switzerland has Europe’s lowest VAT rate. Most goods and services are subject to VAT. Accommodation services are taxed at a lower rate of 3.7 percent, while essential necessities and other common things are taxed at 2.5 percent.
- Switzerland invests more than CHF 22.5 billion on research and development (R&D) each year, or around 3% of GDP. Over two-thirds of this money comes from the private sector.
- The Swiss franc is the country’s currency. There are 100 centimes in a franc. CHF is the currency code for the Swiss franc.
What does GDP per capita reveal?
GDP per capita is a measure of a country’s economic production per person. It aims to measure a country’s success in terms of economic growth per person. The amount of money earned per person in a country is measured by per capita income.
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.