What Is The Richest Country In The World And What Makes It Rich?

Luxembourg, a country in Western Europe known for high-income levels and a low unemployment rate, is the richest country in the world.

In 2021, the Gross Domestic Product (GDP) per capita of Luxembourg, which has a population of 629,191, stood at $135,682.8, as per World Bank.

GDP per capita measures a country's economic output per person. It is calculated by dividing the GDP of a country by its population.

If the GDP per capita is high, this can indicate the wealth and prosperity of the country's inhabitants.

Luxembourg is one of the smallest countries in the world. Castles and churches dot its forests and rolling hills.

The primary factor for the nation's high GDP per capita, per the World Economic Forum, is the large number of people working within the country while residing in the neighboring western European countries.

The high GDP can also be attributed to the advanced infrastructure in the country, according to WorldAtlas.

In the 1970s, the landlocked nation depended on steel and iron until it stopped bringing profit. Today, the country prospers from a mix of industries, including an import-export economy based on financial services.

There is also a small but prosperous agricultural sector in the country.

The at-risk-of-poverty rate of Luxembourg was at 17.40% as of December 2020. At risk of poverty refers to households with incomes less than 60% of median household income.

In May 2022, the inflation rate of Luxembourg stood at 6.8 %, according to Statista.This is one of the highest inflation rates registered in Luxembourg, with the lowest inflation rate measured in February 2021 at -0.09 %.

Meanwhile, the United States has a GDP per capita of $69,287.5 as of 2021, per World Bank.

The country remains the strongest economy, at least going only by its 2021 GDP of $22.996 billion.

The country's GDP puts it ahead of China ($17.734 billion), Japan ($4.937 billion and Germany ($4.223 billion).