In this article, we will be taking a look at the 40 most prosperous nations in the world. You can also check out the 20 Countries with the Highest Annual GDP Growth in the World.
Global poverty saw a major increase due to the COVID-19 pandemic as extreme poverty (living on less than $2.15 per day) rose from 8.9% in 2019 to 9.7% in 2020. This was the first global increase in decades. South Asia witnessed the highest rise, with extreme poverty jumping by 2.4 percentage points to 13%. However, regions like Latin America and the Caribbean, bolstered by Brazil’s fiscal policies, saw a decline in extreme poverty despite the pandemic’s economic disruptions.
By 2022, many regions, including East Asia, Latin America, and Europe, had reduced their extreme poverty rates below pre-pandemic levels. Despite this, global poverty remained marginally above 2019 levels. The uneven recovery is evident in Sub-Saharan Africa, where over half of the world’s extremely poor reside, and poverty reduction was slower due to limited survey coverage and the compounded impact of inflation driven by geopolitical events like Russia’s invasion of Ukraine.
In 2024, the state of global prosperity is definitely improving, as there has been significant growth in the number of people living in better conditions (relatively). In June 2023, the World Bank established a new threshold for prosperity at $25 a day, or $9,125 annually. Currently, around 2.4 billion people, nearly a third of the global population, live at or above this level. This figure is increasing rapidly as approximately 85 million people cross this threshold annually. However, considering global population growth, the net increase in prosperous individuals is around 15 million annually.
Moreover, since 2021, more people in emerging economies have achieved prosperity compared to those in the OECD countries, although only 20% of the population in these regions meets the prosperity threshold compared to 82% in OECD countries. By 2033, the spending power of the prosperous in emerging economies is expected to surpass that of the OECD.
It is also interesting to note that those earning $25 a day spend about $13.50 on essentials like food, housing, and clothing, leaving $11.50 for discretionary spending on goods and services that enhance quality of life. This contrasts sharply with the spending habits of those below the prosperity line, who allocate the majority of their income to basic necessities.
Another concern regarding economic prosperity is the vulnerability of women to the issue. Currently, one in every ten women worldwide lives in extreme poverty. Conflict exacerbates these conditions, as seen by the doubling of women and girls in conflict-affected areas since 2017, now numbering over 614 million. In these regions, women are 7.7 times more likely to live in extreme poverty compared to men. Climate change further deepens economic inequalities for women. By 2030, it is projected that 236 million more women and girls will face hunger, compared to 131 million men.
Nevertheless, some tech giants like Microsoft Corp (NASDAQ:MSFT) and Apple, Inc (NASDAQ:AAPL) have been active in ensuring economic prosperity for nations around the world.
For example, Microsoft Corp (NASDAQ:MSFT) has made a major contribution to economic prosperity through its recent $1 billion digital ecosystem initiative in Kenya, in collaboration with G42. This investment is the largest private-sector digital investment in Kenya’s history and aims to boost economic development across East Africa by establishing a state-of-the-art green data center and creating a new East Africa Cloud Region. Additionally, the initiative includes local-language AI development, digital skills training, and improved connectivity to enhance Kenya’s technological landscape and workforce capabilities.
Speaking of initiatives, Microsoft Corp (NASDAQ:MSFT) is also investing $2.9 billion over the next two years to enhance Japan’s AI and cloud infrastructure. The investment will include AI training for 3 million people, opening Japan’s first Microsoft Corp (NASDAQ:MSFT) Research Asia lab in Tokyo, and strengthening cybersecurity collaboration with Japan’s government.
On the other hand, Apple, Inc (NASDAQ:AAPL) has recently opened its first Developer Center in Southeast Asia, located in Singapore which is no less than a milestone for the region’s tech industry and its prosperity. This state-of-the-art facility offers unparalleled access to Apple, Inc (NASDAQ:AAPL) experts and resources that will benefit hundreds of thousands of developers behind more than 90,000 apps on the App Store.
This Developer Center will certainly drive economic prosperity in Asia by fostering innovation and enhancing the skill sets of local developers. The centre provides a range of activities, such as sessions, labs, and workshops designed for teams at all stages of app development. With access to over 250,000 APIs and more than 40 software development kits (SDKs), developers can integrate advanced technologies like machine learning and augmented reality into their apps. This focus on upskilling will not only advance individual careers but also attract international companies to the region.
Also see 25 States Where Everyday Americans Earn the Lowest Incomes and 20 Countries with Highest Income Tax Rates in Europe.
A busy cityscape of financial buildings, emphasizing the importance of the industry for the economy.
Our Methodology
To identify the most prosperous nations in the world, we used two primary metrics: GDP per capita by country (as of 2022) and the Gini Coefficient Index. Data for both metrics was sourced from the World Bank. Each metric was ranked from 1 to 200, with 1 being the highest rank.
We assigned weights to the ranks of each metric: GDP per capita was given a weight of 0.8, and the Gini Coefficient was given a weight of 0.2. We then calculated a weighted average of the ranks for each country. Based on these weighted averages, we determined the overall ranks of the countries. Below is the list of the most prosperous nations, presented in descending order of their average ranks.
It is worth highlighting that for some countries like Singapore, Hong Kong, and New Zealand, value of Gini coefficient was not available on World Bank so we relied on other online sources which we will link under respective countries.
The idea behind our methodology is that GDP per Capita explains the average economic output and standard of living which can provide a clear measure of national wealth of any country. On the other hand, the Gini Coefficient Index assesses income inequality which helps determine how evenly this wealth is distributed among the population. Together, these metrics provide a holistic view of prosperity.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
40. Japan
GDP Per Capita (PPP) Rank: 40
Gini Coefficient Rank: 105
Weighted Average Rank: 42.5
Japan is one of the leading countries in economic growth. According to the Asian Development Bank, Japan had a Gini coefficient of 0.381 in 2017 and has a GDP per capita of $46,850 as of 2022.
39. Romania
GDP Per Capita (PPP) Rank: 44
Gini Coefficient Rank: 69
Weighted Average Rank: 42.1
Since joining the European Union in 2007, Romania has observed remarkable economic growth and hence, has also outpaced the EU-27 average by fourfold. To continue this trajectory and converge with the anticipated EU average growth rate of 1.1% by 2050, Romania needs to sustain an annual growth rate of at least 2.3%.
38. Portugal
GDP Per Capita (PPP) Rank: 42
Gini Coefficient Rank: 78
Weighted Average Rank: 41.4
Portugal’s economic prosperity has shown resilience and moderate growth. Reuters reported that the new center-right government anticipates a 1.5% GDP increase in 2024, which is consistent with previous forecasts and is down from 2.3% in 2023. Despite this slowdown, Portugal maintains a budget surplus, projected to be 0.3% of GDP for 2024.
37. Slovak Republic
GDP Per Capita (PPP) Rank: 49
Gini Coefficient Rank: 1
Weighted Average Rank: 39.3
With a Gini coefficient of 0.241 as of 2021, Slovak Republic is the country with the lowest income inequality in the world.
36. Croatia
GDP Per Capita (PPP) Rank: 45
Gini Coefficient Rank: 24
Weighted Average Rank: 38.4
Croatia had a Gini coefficient of 0.289 in 2021 and has a GDP per capita of $42,171 as of 2022. It is ranked as #36th most prosperous country in the world.
35. Spain
GDP Per Capita (PPP) Rank: 38
Gini Coefficient Rank: 70
Weighted Average Rank: 37.4
The final quarter of 2023 saw a 0.6% GDP growth, powered by domestic demand despite inflation. Spain’s economy is currently on an upswing as well, with a projected growth of 1.7% in 2024.
34. Lithuania
GDP Per Capita (PPP) Rank: 35
Gini Coefficient Rank: 92
Weighted Average Rank: 37.2
Apart from being one of the most economically prosperous nations in the world, Lithuania has been named the happiest country for Gen Z and millennials in the 2024 World Happiness Report. With an impressive score of 7.759, Lithuania’s youth benefit from excellent social support, freedom, and a lower cost of living.
33. Hungary
GDP Per Capita (PPP) Rank: 43
Gini Coefficient Rank: 26
Weighted Average Rank: 37
Hungary’s economic prospects are showing signs of recovery after a period of stagnation. The first quarter of 2024 saw a GDP growth of 0.8% quarter-on-quarter.
32. Estonia
GDP Per Capita (PPP) Rank: 39
Gini Coefficient Rank: 46
Weighted Average Rank: 35.8
Estonia ranks #32 in our list of the most economically successful countries in the world. Estonia had a Gini coefficient of 0.318 in 2021 and has a GDP per capita of $48,168 as of 2022.
31. Israel
GDP Per Capita (PPP) Rank: 31
Gini Coefficient Rank: 102
Weighted Average Rank: 35
Israel ranks #31 in our list of the richest countries in the world. Israel had a Gini coefficient of 0.379 in 2021 and has a GDP per capita of $52,133 as of 2022.
30. Poland
GDP Per Capita (PPP) Rank: 41
Gini Coefficient Rank: 21
Weighted Average Rank: 34.9
The previous government’s policies in Poland led to a loss of €60 billion ($65.15 billion) in EU Covid-19 recovery funds. However, the new administration under Donald Tusk aims to restore the rule of law and boost human capital investment. With a 30% increase in teachers’ salaries and a focus on competent policy-making, the new government is trying to improve investor confidence and economic stability.
29. Saudi Arabia
GDP Per Capita (PPP) Rank: 23
Gini Coefficient Rank: 145
Weighted Average Rank: 32.9
Saudi Arabia is one of the richest nations in the world in 2024. In 2022, Saudi Arabia had a GDP per capita of $59,279. It is also one of the most respected countries in Asia.
28. South Korea
GDP Per Capita (PPP) Rank: 33
Gini Coefficient Rank: 42
Weighted Average Rank: 30.6
As of 2024, South Korea has a highly developed mixed economy, ranking as the 4th largest in Asia and the 14th largest globally. With a nominal GDP of ₩2.24 quadrillion (equivalent to US$1.72 trillion), it is one of the most prosperous nations in Asia.
27. Italy
GDP Per Capita (PPP) Rank: 27
Gini Coefficient Rank: 79
Weighted Average Rank: 29.5
In 2022, Italy had a high GDP per capita of $55,442, making it one of the most prosperous nations in Europe.
26. New Zealand
GDP Per Capita (PPP) Rank: 30
Gini Coefficient Rank: 45
Weighted Average Rank: 28.5
New Zealand ranks #26 in our list of the most prosperous economies in the world in 2024. Statistics New Zealand’s early 2022 data revealed a decline in income inequality in the country as Gini coefficient dropped from 0.327 in 2018 to 0.317 in 2021.
25. Cyprus
GDP Per Capita (PPP) Rank: 29
Gini Coefficient Rank: 45
Weighted Average Rank: 27.7
Cyprus continues to prosper owing to its strategic location which serves as a gateway between continents and hence, allows it to facilitate trade and investment. Its open, free-market economy attracts businesses with moderate costs, supported by a well-educated, English-speaking workforce.
24. United Kingdom
GDP Per Capita (PPP) Rank: 28
Gini Coefficient Rank: 52
Weighted Average Rank: 27.6
One of the ways we can judge the prosperity of the UK is that inflation in the UK has dropped to its lowest level in nearly three years, with the consumer prices index falling to 2.3% in April from 3.2% in March. This is the lowest rate since July 2021.
23. Slovenia
GDP Per Capita (PPP) Rank: 34
Gini Coefficient Rank: 2
Weighted Average Rank: 27.4
In the first quarter of 2024, Slovenia observed a 2.1% year-on-year economic expansion. Domestic expenditure, particularly the final consumption, witnessed steady growth, while fixed capital formation rebounded after previous declines.
22. Hong Kong
GDP Per Capita (PPP) Rank: 14
Gini Coefficient Rank: 161
Weighted Average Rank: 27.3
In the first quarter of 2024, Hong Kong’s Gross Domestic Product (GDP) grew by 2.3% compared to the previous quarter, as reported by the Hong Kong Special Administrative Region (HKSAR) government.
21. Malta
GDP Per Capita (PPP) Rank:24
Gini Coefficient Rank: 80
Weighted Average Rank: 27.2
Malta ranks #21 in our list of the most prosperous countries in the world. Malta had a Gini coefficient of 0.314 in 2020 and has a GDP per capita of $58,546 as of 2022.
20. Czech Republic
GDP Per Capita (PPP) Rank: 32
Gini Coefficient Rank: 9
Weighted Average Rank: 26.5
Income inequality in the Czech Republic is way lower than in other European Union and OECD countries. The Czech Republic observes effective redistributive policies, particularly targeted at low-income groups and those at risk of poverty. These policies mostly include unemployment support, assistance for single-parent families, and benefits for families with multiple children.
19. France
GDP Per Capita (PPP) Rank: 26
Gini Coefficient Rank: 43
Weighted Average Rank: 25.1
In France, the minimum wage (SMIC) was revised effective by January 1, 2024. This adjustment raised the monthly minimum wage from €1,747.20 ($1898) to €1,766.92 ($1918) and the hourly rate from €11.52 ($12.51) to €11.65 ($12.65).
To read more minimum wages, see 20 Countries with the Lowest Minimum Wage in the World.
18. Australia
GDP Per Capita (PPP) Rank: 18
Gini Coefficient Rank: 76
Weighted Average Rank: 22
Australia had a Gini coefficient of 0.343 as of 2018. Moreover, it had a GDP per capita of $65,388 as of 2022, making Australia one of the highest-income countries in the world.
17. Canada
GDP Per Capita (PPP) Rank: 20
Gini Coefficient Rank: 45
Weighted Average Rank: 20.5
Canada is consistently named among the top 20 most prosperous nations in the world. It has one of the strongest job markets, fueled by a pro-immigration stance which provides ample opportunities to address the labor shortages and boost the economy. Moreover, its education system is ranked among the world’s best.
16. United States
GDP Per Capita (PPP) Rank: 9
Gini Coefficient Rank: 113
Weighted Average Rank: 18.5
The US economy is consistently thriving and has outpaced its European counterparts with a strong GDP growth of 3.3% in the fourth quarter of 2023. One of the biggest reasons for this success is the massive injection of $5 trillion into the economy through stimulus packages that have sustained consumer spending. It, however, ranks low on the Gini coefficient index as it stood at 0.398 in 2021.
15. Germany
GDP Per Capita (PPP) Rank: 17
Gini Coefficient Rank: 45
Weighted Average Rank: 18.1
Germany’s economy showed a modest rebound in the first quarter of 2024, with a growth of 0.2% compared to the previous quarter, according to the Federal Statistical Office (Destatis). Despite a decline in gross domestic product (GDP) at the end of 2023, positive growth marked the beginning of 2024.
14. Finland
GDP Per Capita (PPP) Rank: 19
Gini Coefficient Rank: 15
Weighted Average Rank: 16.7
Finland consistently ranks first as the world’s happiest country, despite its long winters and dark days. This happiness is thanks to Finland’s strong support system. They invest a lot in social programs like healthcare and pensions that ensure a high quality of life for everyone.
13. Qatar
GDP Per Capita (PPP) Rank: 5
Gini Coefficient Rank: 126
Weighted Average Rank: 16.6
Qatar ranks #13 in our list of the richest countries in the world. Israel had a Gini coefficient of 0.379 in 2021 and has a GDP per capita of $52,133 as of 2022.
12. Sweden
GDP Per Capita (PPP) Rank: 16
Gini Coefficient Rank: 33
Weighted Average Rank: 16.1
Sweden is economically prosperous owing to its export-oriented mixed economy that leverages its abundant natural resources such as timber, hydropower, and iron ore. Moreover, the engineering sector is essential for the country as it contributes almost 50% of output and exports, complemented by strong telecommunications, automotive, and pharmaceutical industries.
11. Singapore
GDP Per Capita (PPP) Rank : 3
Gini Coefficient Rank: 135
Weighted Average Rank: 15.9
Income inequality in Singapore has reached its lowest level in over two decades. In 2023, Singapore’s Gini coefficient stood at 0.433 before government transfers and taxes, dropping to 0.371 after adjustments. Government interventions, such as utility bill rebates and income support schemes, have contributed to this reduction. Moreover, Singapore has a high GDP per capita of $127,606 as of 2022.
10. Austria
GDP Per Capita (PPP) Rank: 12
Gini Coefficient Rank: 37
Weighted Average Rank: 13.3
In 2024, Austria’s economy is projected to grow modestly by 0.3% after a recession in 2023, with growth expected to rise to 1.6% in 2025. Inflation is decreasing but will remain high, with rates of 3.6% in 2024 and 2.8% in 2025.
9. Belgium
GDP Per Capita (PPP) Rank: 15
Gini Coefficient Rank: 10
Weighted Average Rank: 13
Belgium observes strong economic indicators, such as a high GDP per capita of $68,253, a low unemployment rate of 5.5%, and strong export performance, particularly in chemicals, machinery, and diamonds.
8. Switzerland
GDP Per Capita (PPP) Rank: 6
Gini Coefficient Rank: 67
Weighted Average Rank: 11.5
Switzerland is undoubtedly one of the 10 most prosperous countries in the world. It also became the first major economy to lower policy rates as the Swiss National Bank unexpectedly cut its main policy rate by 0.25 percentage points to 1.5%. Economists had anticipated rates to hold at 1.75%. This decision follows Switzerland’s inflation dropping to 1.2% in February.
7. Iceland
GDP Per Capita (PPP) Rank: 11
Gini Coefficient Rank: 8
Weighted Average Rank: 9.6
Iceland ranks #7 in our list of the most prosperous nations in the world. Iceland had a Gini coefficient of 0.261 in 2017 and has a GDP per capita of $71,840 as of 2022.
6. Netherlands
GDP Per Capita (PPP) Rank: 10
Gini Coefficient Rank: 6
Weighted Average Rank: 8.6
The Netherlands’ economy saw a modest recovery in late 2023, with GDP growth of 0.4% in Q4. This rebound ended a nine-month recession and was primarily driven by a 1.9% rise in household consumption and a 0.7% increase in government spending.
5. Denmark
GDP Per Capita (PPP) Rank: 8
Gini Coefficient Rank: 19
Weighted Average Rank: 8.3
Denmark’s economy is a modern, high-income, and highly developed mixed economy. In 2023, Denmark’s nominal gross national income per capita ranked ninth globally at $68,827.