In this article, we will look into the 30 countries with highest standard of living ranked by GDP (PPP) per capita. If you want to skip our detailed analysis you can go directly to the 10 Countries with Highest Standard of Living Ranked by GDP (PPP) Per Capita.
An Analysis of Living Standards
For a country to become a place of the highest standard of living, several aspects play an important role. Economic liberty, education, health, equal rights, social security, effective governance, transportation, good job market, income equality, and economic well-being, all impact a country’s standard of living. Countries with the highest quality of life fulfill the necessities of their citizens, and health is among the top priorities. As we mentioned earlier, humans could add almost 6 years of life per person on average over the next decade, as per the McKinsey Institute of Health (MIH). The MIH expects improvements in life expectancy and overall quality of life with the enhancement of technology and innovations in all aspects of life. Within a decade, several countries have made considerable health improvements. Countries including Bolivia, Ireland, and Thailand gained 3.8, 3.0, and 4.5 years in their life expectancies.
Over the past decade, the quality of life has improved significantly, as per the OECD report. The improvement is experienced following a relatively high $28,000 average annual household income of the member countries and a median $162,000 household wealth. Economic developments, affordable living costs, and high employment rates are among other major improvements.
Working opportunities and employee satisfaction really matter a lot when we consider high levels of living standards. Countries with the happiest workers in the world tend to have high per capita income and better job opportunities. As per a Ford survey, among 16,086 employees across 16 countries, including Brazil, China, France, and the US, nearly 52% of respondents mentioned that they would accept a 20% pay cut for a better work-life balance. Particularly, younger generations are more likely to make this trade-off compared to older counterparts. 80% would be willing to show commitment to their current jobs. In addition, 60% of respondents believe in AI integration to manage personal and professional responsibilities.
The global economy is slowly recovering but at the same time, several risks such as the Middle East crisis and the Russia-Ukraine war pose a greater threat. As we mentioned earlier, global growth is expected to remain steady at 3.1% in 2024 and reach 3.2% in 2025. The majority of countries with the highest quality of life are based out of Europe and Asia including Singapore, Switzerland, Denmark, Luxembourg, Ireland, Taiwan, and Qatar, among others.
Major Players from Europe and Asia
The European and Asian markets are dominated by healthcare, energy, and technology sectors, among others. Novartis AG (NYSE:NVS), Tenaris S.A. (NYSE:TS), and Qatar Gas Transport Nakilat Co Ltd QPSC (DSM:QGTS) are some of the leading companies based out of the richest countries with the highest standard of living.
Novartis AG (NYSE:NVS) is a leading multinational pharmaceutical corporation based in Switzerland. On February 5, Novartis AG (NYSE:NVS) announced that it had signed an agreement with MorphoSys AG (NASDAQ:MOR) to acquire the firm for approximately €2.7 billion, subject to customary closing conditions. With the acquisition of MorphoSys AG (NASDAQ:MOR), Novartis AG (NYSE:NVS) will further expand its pipeline in oncology and also enhance its global footprint in hematology. Here is what Novartis AG’s (NYSE:NVS) President, Development and Chief Medical Officer, Shreeram Aradhye, said about the planned acquisition:
“With the planned acquisition of MorphoSys, we aim to further strengthen our leading pipeline and portfolio in oncology, adding to our capabilities and expertise. Building on our long-standing development partnership with MorphoSys, we look forward to continuing our work together to realize the full impact and value of their investigational medicines for patients with unmet needs.”
Tenaris S.A. (NYSE:TS) is a global manufacturer of steel pipes and related services, primarily for the energy industry. On January 24, Tenaris S.A. (NYSE:TS) announced that it is supporting the digitization of thousands of archaeological pieces in Mexico in partnership with the National Institute of Anthropology and History (INAH). With Tenaris’s support, almost 10,000 archaeological pieces from the Fort of San Juan de Ulúa Museum in Veracruz have been registered, photographed, and cataloged. Moreover, the INAH registers over 1,500 pieces each year in collaboration with Tenaris S.A. (NYSE:TS). The project has also created jobs for specialized technicians.
Qatar Gas Transport Nakilat Co Ltd QPSC (DSM:QGTS) is one of the top shipping and maritime companies with the world’s largest LNG shipping fleet. On January 28, Qatar Gas Transport Nakilat Co Ltd QPSC (DSM:QGTS) announced its results for fiscal year 2023. The company continued its strong financial performance in 2023, reporting a net profit of QAR 1.55 billion and a revenue of QAR 4.65 billion. The net profit and revenue increased by 8.3% and 5.7% year-over-year, respectively. Despite challenges in the global shipping market caused by conflicts in the Middle East, Qatar Gas Transport Nakilat Co Ltd QPSC (DSM:QGTS) progressed against the odds. The company’s Chairman of the Board of Directors, Abdulaziz Jassim Al-Muftah, said:
“This year has brought about significant changes and challenges to the global shipping market, shaped by global events and geopolitical shifts. Despite these challenges, Nakilat has not only navigated through these complexities but has also emerged stronger, showcasing resilience, innovation, and a commitment to excellence. As geopolitical dynamics continue to impact global energy markets, Nakilat remains steadfast in adapting to these changes. We recognize the importance of staying agile in the face of uncertainties and are committed to overcoming challenges by leveraging our expertise and strategic partnerships with a forward-looking approach.”
These were a few leading companies from some of the richest countries with the highest standard of living. Now, let’s take a look at the countries with the highest standard of living, ranked by GDP (PPP) per capita.
30 Countries with Highest Standard of Living Ranked by GDP (PPP) Per Capita
Our Methodology
To compile or list the countries with the highest standard of living ranked by GDP (PPP) per capita, we used two metrics: the Human Development Index (HDI) and GDP (PPP) Per Capita.
Firstly, we shortlisted the countries with a minimum Human Development Index of 0.850 and then ranked them based on their GDP per capita. The countries are ranked in ascending order of their GDP per capita. The data for HDI was taken from the United Nations Human Development Insights and the GDP per capita (PPP) was taken from the International Monetary Fund (IMF) database. The HDI figures are from 2022 and the GDP per capita (PPP) figures are from 2024.
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Note: We have excluded Israel from our list considering the current scenario in the region.
30 Countries with Highest Standard of Living Ranked by GDP (PPP) Per Capita
30. Italy
Human Development Index (2022): 0.895
GDP Per Capita (2024): $54,260
Italy has a GDP per capita of $54,260 and a human development index of 0.895. Italy ranks 30th among the countries with highest standard of living, ranked by GDP per capita.
29. South Korea
Human Development Index (2022): 0.925
GDP Per Capita (2024): $56,710
South Korea has a human development index of 0.925 and a GDP per capita of $56,710. South Korea is one of the countries with highest standard of living, ranked by GDP per capita.
28. United Kingdom
Human Development Index (2022): 0.929
GDP Per Capita (2024): $56,840
The United Kingdom is one of the largest economies in the world having a GDP per capita of $56,840. With a 0.929 human development index, the United Kingdom is one of the countries with the highest standard of living.
27. France
Human Development Index (2022): 0.903
GDP Per Capita (2024): $57,880
France is one of the richest European countries with a $57,880 GDP per capita. France has a human development index of 0.903.
26. Canada
Human Development Index (2022): 0.936
GDP Per Capita (2024): $59,810
Canada has a human development index of 0.936 and a GDP per capita of $59,810.
25. Finland
Human Development Index (2022): 0.940
GDP Per Capita (2024): $59,870
Finland has a GDP per capita of $59,870 and a human development index of 0.940. Finland is placed 25th among the countries with highest standard of living, ranked by GDP per capita.
24. Bahrain
Human Development Index (2022): 0.875
GDP Per Capita (2024): $60,720
Bahrain is one of the richest Arab countries with a GDP per capita of $60,720. With a 0.875 human development index, Bahrain is one of the countries with highest standard of living, ranked by GDP per capita.
23. Malta
Human Development Index (2022): 0.918
GDP Per Capita (2024): $63,480
Malta has a GDP per capita of $63,480 and a human development index of 0.918. Malta is one of the countries with the highest standard of living.
22. Belgium
Human Development Index (2022): 0.937
GDP Per Capita (2024): $65,810
Belgium is one of the richest countries in Europe having a GDP per capita of $65,810. Belgium has a human development index of 0.937.
21. Germany
Human Development Index (2022): 0.942
GDP Per Capita (2024): $66,040
Germany is one of the largest economies in the world and is placed 21st among the countries with the highest standard of living, ranked by GDP per capita. Germany has a human development index of 0.942 and a GDP per capita of $66,040.
20. Sweden
Human Development Index (2022): 0.947
GDP Per Capita (2024): $66,210
Sweden has one of the highest human development index. With a GDP per capita of $66,210, Sweden is one of the countries with highest standard of living, ranked by GDP per capita.
19. Australia
Human Development Index (2022): 0.951
GDP Per Capita (2024): $64,670
Australia is one of the fastest growing economies in the world and has a GDP per capita of $64,670. Australia has a human development index of 0.951.
18. Andorra
Human Development Index (2022): 0.858
GDP Per Capita (2024): $68,230
Andorra has a GDP per capita of $68,230 and a human development index of $68,230. Andorra is placed 18th among the countries with highest standard of living, ranked by GDP per capita.
17. Austria
Human Development Index (2022): 0.916
GDP Per Capita (2024): $69,070
Austria has a human development index of 0.916 and a GDP per capita of $69,070. Austria is one of the richest countries in Europe.
16. Iceland
Human Development Index (2022): 0.959
GDP Per Capita (2024): $69,830
Iceland has a GDP per capita of $69,830 and a human development index of 0.959.
15. Saudi Arabia
Human Development Index (2022): 0.875
GDP Per Capita (2024): $71,370
Saudi Arabia is one of the richest Arab countries having a GDP per capita of 0.875. Saudi Arabia has a human development index of 0.875.
14. Brunei Darussalam
Human Development Index (2022): 0.829
GDP Per Capita (2024): $72,610
Brunei Darussalam is one of the richest countries with a GDP per capita of $72,610. Brunei Darussalam has a human development index of 0.829.
13. Hong Kong
Human Development Index (2022): 0.952
GDP Per Capita (2024): $72,860
Hong Kong is one of the countries with the highest standard of living, ranked by GDP per capita. Hong Kong has a GDP per capita of $72,860 and a human development index of 0.952.
12. Netherlands
Human Development Index (2022): 0.941
GDP Per Capita (2024): $73,320
The Netherlands has a human development index of 0.941 and a GDP per capita of $73,320.
11. Denmark
Human Development Index (2022): 0.948
GDP Per Capita (2024): $74,960
Denmark is one of the richest countries in Europe having a GDP per capita of $74,960. Denmark has a human development index of 0.948.
Click to continue reading and see the 10 Countries with Highest Standard of Living Ranked by GDP (PPP) Per Capita.
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Disclosure: None. 30 Countries with Highest Standard of Living Ranked by GDP (PPP) Per Capita is originally published on Insider Monkey.