The United States is often considered the wealthiest country in the world. However, there are a few countries that actually have higher GDP per capita than the US. GDP per capita is a measure of a country’s economic output per person and is a good way to compare the relative wealth between countries. Some quick facts on America’s GDP per capita:
- The US GDP per capita is approximately $63,544 (2021 est.)
- This ranks the US around 7th in the world in terms of GDP per capita
- The US has the largest total GDP in the world at over $20 trillion
So while America has the largest overall economy, there are a handful of smaller countries that edge out the US in terms of per capita wealth.
Countries Richer Than America
Here are the main countries that currently have higher GDP per capita than the United States:
Luxembourg
Luxembourg tops the list with a GDP per capita of around $119,717 (2021 est.) This small European country has benefited from its stable government, secretive banking sector, and integration with the economies of Europe. Some key facts:
- Population of only 634,000 people
- Known as a tax haven and major financial hub
- Strong GDP growth expected to continue in future
Singapore
This city-state in Southeast Asia comes in 2nd with a GDP per capita of $94,100 (2021 est.) Singapore has rapidly developed over the past 50 years thanks to its strategic location, trade-friendly policies, skilled workforce and stable government.
- Major hub for finance and transportation
- Highly developed free market economy
- Low taxes and pro-business environment
Ireland
Ireland’s GDP per capita stands at around $92,900 (2021 est.) Ireland has become one of Europe’s fastest growing economies in recent decades after years of rapid expansion and foreign investment.
- Well-educated, English-speaking workforce
- Low corporate tax rates to attract foreign businesses
- Focus on high-tech industries and services
Norway
Norway has a GDP per capita of about $87,000 (2021 est.) Much of Norway’s wealth comes from its large oil and gas reserves in the North Sea.
- Largest sovereign wealth fund in the world
- Free universal healthcare and education
- Low income inequality compared to other countries
Switzerland
Switzerland rounds out the top 5 with a GDP per capita of around $74,000 (2021 est.) Switzerland’s long history of neutrality, stable government and banking secrecy has helped it become one of the richest nations.
- World famous for banking, financial services
- Attractive tax rates and privacy laws
- Strong service sectors like tourism and precision engineering
Other High GDP Countries
Some other nations with higher GDP per capita than the US include:
- Qatar – $72,000
- Denmark – $66,000
- Iceland – $65,000
- UAE – $62,000
- Kuwait – $59,000
So while America’s large population and overall GDP makes it a dominant global economic force, its ranking in terms of per capita wealth is lower than many other smaller nations.
Why Other Countries Have Higher Per Capita GDP
There are several key reasons why the countries outlined above can outperform the United States in GDP per capita:
Small populations with valuable resources
Some countries like Luxembourg and Norway have small populations relative to their valuable natural resources like oil, allowing for higher per capita distribution.
Focus on highly productive industries
Many top ranking countries have economies centered around finance, technology, manufacturing and other highly productive sectors.
Proximity to major markets
Most high GDP nations are located in or near major economic centers like Europe, allowing for increased trade and economic integration.
Low corporate taxes and regulations
Some countries like Ireland and Singapore have pursued low corporate tax rates and loose regulations to attract investment and become hubs for multinational companies.
Stable governments with central planning
Countries like Norway fund public services through centralized long-term planning and sovereign wealth funds, potentially increasing efficiency.
| Country | GDP Per Capita | Key Factors |
|---|---|---|
| Luxembourg | $119,717 | Financial hub, low taxes |
| Singapore | $94,100 | Strategic hub, trade policies |
| Ireland | $92,900 | Tech sector, low taxes |
| Norway | $87,000 | Oil reserves, sovereign fund |
| Switzerland | $74,000 | Banking, neutral policies |
Conclusion
While the United States has the largest overall GDP, it ranks lower in terms of per capita GDP compared to smaller countries with more efficient economies. The richest nations tend to have favorable policies, proximity to major markets, valuable natural resources, and focus on highly productive industries. However, America still remains an economic superpower given the size and diversity of its economy. Improving education, infrastructure and economic equality could help the US increase its GDP per capita in the long run.