In this article, we will be analyzing the factors driving productivity in different geographical locations across the globe while covering the 25 most productive countries per capita. If you wish to skip our detailed analysis, you can move directly to the 5 Most Productive Countries Per Capita.
What Drives Productivity in a Country?
Efficiency in production, also coined as productivity, is one of the major driving forces behind economic resilience in a country. There are several factors which contribute to this productivity. The national structural policies play a primary role in this context since they build an environment where productive labor and companies can thrive. A competitive business environment typically fosters growth and innovation in a country. Globalization is another key element in national-level productivity since it expands the export and business market for a country. An example of this could be Luxembourg, as reported by KPMG, which offers just the right kind of stable and low corporate tax environment for businesses to invest and operate in the country, which in turn boosts economic growth. Luxembourg’s government promotes innovation and technology. The country ranks as the second largest fund center across the world. The state economy is diverse and some of its key industries include automotive, logistics, and maritime. The workforce is multilingual and extremely skilled which helps the country achieve its productivity targets.
In addition to a favorable economic environment, the per capita productivity is represented by economic output which can be attributed to every worker in the country. Labor productivity and labor utilization are the key factors that back this economic output up. As reported by the OECD, some of the countries with the highest levels of GDP per capita in 2022, such as Luxembourg, Norway, and Ireland have a high labor utilization and a high level of output for every hour worked. You can also take a look at some of the countries with the best economies in the world.
Thriving Businesses in Productive Environments
Some of the most productive countries in the world are home to a diverse set of foreign corporate headquarters. Luxembourg has the highest GDP per capita in the world, as of 2022. The country hosts the European headquarters of multinational firms such as PayPal Holdings, Inc. (NASDAQ:PYPL), Amazon.com, Inc. (NASDAQ:AMZN), and Skype by Microsoft Corporation (NASDAQ:MSFT). Let’s take a look at the recent updates regarding all of them.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a leading global payment technology company. The company continues to be a leading player in the financial technology industry by making mobile payment services convenient for its users. On October 3, PayPal Holdings, Inc. (NASDAQ:PYPL) reported that its customers can add their PayPal and Venmo credit or debit cards to Apple Wallet. Payments can be made in-store, online, or on any app by the company’s users on their iPhones. These customers will also be eligible to earn 2% on payment with a PayPal Cashback Credit Card and PayPal reward points while paying through a PayPal Debit Card.
Amazon.com, Inc.’s (NASDAQ:AMZN) European headquarters are based in Luxembourg City, the capital of Luxembourg. The company has built a strong global reputation through its exceptional customer service. On October 9, the company reported that it has opened its fulfillment centers for in-person customer tours so the customers can be a part of the whole Amazon journey. Currently, these on-site tours are available in 30 new locations in Germany, Canada, Italy, the United Kingdom, and the United States.
Skype Technologies S.A.R.L, a division of Microsoft Corporation (NASDAQ:MSFT), is known for its instant messaging and videoconferencing services. On August 29, the company reported that it has been 20 years since Skype was first launched. The company has inculcated innovation along the way. As one of its recent updates, the company introduced Bing AI to chats on Skype. The chatbot can be added to any Skype chat to utilize help from it while staying on the platform.
You can also view some of the best countries to invest in. Without further ado, let’s go through the 25 most productive countries in the world.
25 Most Productive Countries Per Capita
Our Methodology:
In order to compile a list of the 25 most productive countries per capita, we selected GDP per capita as our metric to appropriately represent the level of productivity per capita. GDP per capita is obtained by dividing the total value of goods and services produced in a country by its population and therefore depicts the economic output per person. Thus, we selected GDP per capita as our metric. This metric truly depicts the economic performance of a country and helps make cross-country comparisons across per capita productivity. The data for this metric was sourced from the World Bank. The most recent data was available from 2022. Finally, we ranked the 25 most productive countries per capita in ascending order of their GDP per capita.
25 Most Productive Countries Per Capita
25. Andorra
GDP Per Capita as of 2022: $41,993
Andorra is a developed economy with a high income per capita. Retail, finance, and tourism drive the country’s economy. As of 2022, the country has a GDP per capita of $41,993 and is one of the most productive countries per capita.
24. Kuwait
GDP Per Capita as of 2022: $43,233
Kuwait is another productive country per capita. The economy of the country is significantly boosted by its high value reserves of oil and gas thereby contributing to the high GDP per capita. As of 2022, the GDP per capita of the country is $43,233.
23. United Kingdom
GDP Per Capita as of 2022: $45,850
The United Kingdom has a high GDP per capita. This is because the country has a well-established market economy powered by its financial services, technology, and oil and gas industry. Thus, the United Kingdom is one of the 25 most productive countries per capita.
22. New Zealand
GDP Per Capita as of 2022: $48,249
As of 2022, New Zealand has a GDP per capita of $48,249 which ranks it as one of the most productive countries per capita. The country’s economy is diverse and reaps economic output from manufacturing, agriculture, tourism as well as exports.
21. Germany
GDP Per Capita as of 2022: $48,432
Germany is a productive country per capita as evidenced by its GDP per capita of $48,432, as of 2022. The country also has a high economic output per hours worked which implies a high labor productivity.
20. Hong Kong
GDP Per Capita as of 2022: $48,984
The high per capita productivity in Hong Kong is a product of its developed international trade and finance sectors. The country also attracts businesses due to its low tax policy. As of 2022, the GDP per capita in the country is $48,984.
19. Belgium
GDP Per Capita as of 2022: $49,583
Belgium has one of the highest output per hour worked among all other countries. Factors such as a highly skilled workforce, high capital intensity, and international trade advantage enable the country to become one of the most productive countries per capita.
18. Finland
GDP Per Capita as of 2022: $50,537
Finland is another European country that has a high productivity per capita. As of 2022, the country has a GDP per capita of $50,537. The per-hour economic output is also high in Finland which proves the country’s state of productivity.
17. Austria
GDP Per Capita as of 2022: $52,131
Austria ranks as one of the most productive countries per capita. The total employment in the country has also increased in 2022. The country has a high standard of living and a high GDP per capita as compared to its neighboring European countries.
16. United Arab Emirates
GDP Per Capita as of 2022: $53,758
The economy of the United Arab Emirates is quite strong as a result of its abundant oil reserves. Tourism and business have also flourished in the country, contributing to the high GDP per capita. As of 2022, UAE has a GDP per capita of $53,758.
15. Israel
GDP Per Capita as of 2022: $54,660
Israel also qualifies as one of the most productive countries per capita. The per capita GDP of the country is $54,660, as of 2022. The total employment and the labor force participation rate in Israel has risen in 2022 which boosts the productivity per capita.
Multinational companies including PayPal Holdings, Inc. (NASDAQ:PYPL), Amazon.com, Inc. (NASDAQ:AMZN), and Skype by Microsoft Corporation (NASDAQ:MSFT) hold a strong position in their respective industries.
14. Canada
GDP Per Capita as of 2022: $54,966
As of 2022, Canada has a GDP per capita of $54,966 which ranks it as one of the 25 most productive countries per capita. This high GDP per capita is due to the growing real estate, manufacturing, and mining industries in the country. The labor market is strong and the unemployment rate has recently been low in the country.
13. Sweden
GDP Per Capita as of 2022: $55,873
Sweden is another productive country per capita. The Swedish economy is diverse, competitive and shows an openness to trade which boosts economic activity. The country recorded a GDP per capita of $55,873 in 2022.
12. Netherlands
GDP Per Capita as of 2022: $55,985
The Netherlands has a highly educated and multilingual workforce. Through an innovative and entrepreneurial environment, the country attracts businesses and investments. Thus, the Dutch economy is quite competitive and has a high GDP per capita.
11. Australia
GDP Per Capita as of 2022: $64,491
Australia has a significant GDP per capita which makes it one of the most productive countries per capita. The country is an attractive destination for businesses especially those operating in the tech industry. Australia highly attracts skilled labor thereby resulting in per capita productivity.
10. Denmark
GDP Per Capita as of 2022: $66,983
As of 2022, the GDP per capita in Denmark is $66,983. The economic output per hour worked is also high in the country. The labor force is well educated and is employed across diverse industries. Denmark is one of the most productive countries per capita.
9. Iceland
GDP Per Capita as of 2022: $72,903
Iceland is one of the 25 most productive countries per capita. It is an open and high income economy that employs skilled labor. The GDP per person employed is also high in the country.
PayPal Holdings, Inc. (NASDAQ:PYPL), Amazon.com, Inc. (NASDAQ:AMZN), and Skype by Microsoft Corporation (NASDAQ:MSFT) benefit from the favorable business conditions in some of the most productive countries in the world.
8. United States
GDP Per Capita as of 2022: $76,399
The United States has one of the strongest economies in the world. The country hosts some of the largest companies in the world, which contributes to the high GDP per capita in the country. In 2022, the United States recorded a GDP per capita of $76,399.
7. Singapore
GDP Per Capita as of 2022: $82,808
Singapore is another productive nation per capita. As of 2022, the country has a GDP per capita of $82,808. The labor productivity has also improved in Singapore. The country offers low tax rates and is an attractive site for businesses.
6. Qatar
GDP Per Capita as of 2022: $88,046
The high GDP per capita in Qatar can be attributed to its strong economy which is driven by one of the world’s largest gas and petroleum reserves. Exports of these products further lift productivity. Hence, Qatar is one of the most productive countries in the world.
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Disclosure: None. 25 Most Productive Countries Per Capita is originally published on Insider Monkey.