There are different factors leading to wealth of a state. One can be from the natural factor like a country that has oil reserve. Another can be the result from service or manufacturing industry. Sometimes, financial factor is also a source to economic development. The so-called rich or poor countries are used politically in the separation of North-South division. Of course, it’s true that many rich countries are from the Northern part of the world, and many poor countries are located in the Southern part like those in Asia and Africa. Today, rich countries deserve to be studied and observed. Find below the top 10 richest countries in the world.
Austria has a population of 8.5 million with GDP per capita income of $42,409. Although this country experienced economic decline, it is still richer than other European countries. Income tax rate of a person is 50 percent while corporate tax is lower. Austria has abundant national resources which are input to economic development. Therefore, it is the tenth richest country that provides good standard of living to the people. Of course, in developed country like Austria, you will not be surprised to know that corruption does not often happen and institutional frameworks are strong.
Australia has a population of 22 million with GDP per capita income of $42,640. It is a rich country because the economy focuses on mining and agriculture for exportation. Moreover, this country also has competitive technology, and an economy from service and value added production. Individual tax rate is 45 percent while corporate tax rate is 30 percent. Its famous development depends largely on national efforts from the investment of education, good health, and economic freedom.
Netherlands is another rich European country which has a population of only 16.8 million with GDP per capita income of $42,194. Traditionally, is economy development depends on international commerce and largest ports as the main transportation in the world. Moreover, liberal economic policy is the main focus for attracting business kick-start with less economic barriers. Like Australia, this country also exports agricultural, mining, and manufacturing goods for economic growth.
Switzerland is a very peaceful country. Furthermore, this land is settled by a population of only 8 million with GDP per capita income of $45,418. Because Switzerland adopts liberal democracy, there is less barriers or restrictions on investment from both local and foreign businessman. Another important thing is that Switzerland adopts a good system for financial sector to support investment activities. Therefore, banking is a priority policy because the government also extracts some revenue from it. Other sources of government revenue are from metals, chemicals, electronics, and pharmaceuticals.
06. United Arab Emirates
United Arab Emirates is a country situated in the Middle East. This country is an oil country which has a population of 5.5 million with GDP per capita income of $49,012. Oil is the main source to government revenue and standard of living for local people. Only about 20% of the GDP are earned from other factors. Noticeably, unemployment rate in the country is only 2.4 percent where annual economic growth is only 3.9 percent. It is very unique country that has no imposition on income tax and corporate tax at all. Because it’s a very rich country, if you go to Dhabi, you will see stunning architecture.
05. United States
United States is a big country with a population of 314.2 million with GDP per capita income of $49,922. You may wonder how a country with big population affords to have big per capita income. First, this country has maintained a father of a liberal economic system that assists free flow of information and investment. Second, the US focuses on technology and automobile industries which create a large part of its GDP. Exportation still makes the US the fourth richest country in the world.
Now go back to Europe to see how Norway manage its development. With only a population of 5 million and GDP per capita income of $55,009, Norway relies on natural resources such as oil, metal, and fish for economic growth. Mostly, revenue is earned from dividend and tax from some companies. Individual tax rate is 47.8 percent and corporate tax in 28 percent. Education has become one the government’s investment. Anyway, Norway is famous for the least corrupt state in the world which is a model for economic growth and fulfillment of monetary resources.
Singapore is a small state in Southeast Asia, and an important port to sea route. This island has a population of 5.4 million with GDP per capita income of $60,410. The increasing economic growth in Singapore is derived from financial sector, chemical industry and moderate economic policies. Though the island itself is small, its port is the second busiest for exportation. Likewise, Singapore also depends on other factors like electronics and chemical industries for economic development. Mainly, education and health care are the major focus.
Here is the second richest country in the world. Luxembourg is in Europe with a population of only 0.5 million and GDP per capita income of $79,785. No doubt, its GDP per capita income is high due to its small population. Oil is a traditional income dependence for Luxembourg’s population. Besides oil, this countries also relies on industrial factors from steel, rubber, chemicals, and other manufacturing products. Financial policy is another important key development that helps change Luxembourg from industrial economy to services and manufacturing economy.
Qatar is located in Western Asia and the third largest natural gas reserves in the world. It has a population of 1.8 million with GDP per capita income of $102,211. 80 percent from oil exportation is the main support for GDP. This country is the world richest country with high per capita income with no income tax and corporate tax from people in order to enhance living standard.