The world’s wealthiest country is not a global superpower but instead a small European nation that is twice as wealthy as the UK, new research has revealed
Contrary to what you might think, the world’s richest country isn’t one of the big global players.
In fact, many of the wealthiest nations are surprisingly small. A study by Global Finance, which looked at the Gross Domestic Product purchasing power parity (GDP-PPP) worldwide, revealed that in 2024, Luxembourg was the planet’s most affluent country. With a GDP per capita of $143,743 (around £109,000), Luxembourg is nearly twice as wealthy as the UK, which has a current GDP-PPP per capita of £58,880.
The report showed that from 2010 to 2024, Luxembourg saw a steady rise in its GDP per capita, consistently ranking near or at the top compared to other rich countries. The Grand Duchy of Luxembourg, a tiny nation in northwestern Europe bordered by Belgium, France, and Germany, was once dependent on its iron and steel industry in the 1900s.
Home to ArcelorMittal, the world’s largest steelmaker responsible for eight percent of global steel output, the steel industry still makes up seven percent of the nation’s economy today. Despite having a population of just over 650,000, this small European country has evolved into Europe’s leading investment management centre over the past few decades.
This tiny nation has seen a significant increase in wealth, driven by its booming financial services sector and cutting-edge technological advancements.
Despite its small size, Luxembourg is home to over 155 banks and has positioned itself as a significant global centre for banking and finance. The country’s allure for foreign investors stems from its proficiency in managing international investment activities, such as mutual funds, hedge funds, and pension funds.
Luxembourg has gained a reputation as a “business-friendly” nation, offering low corporate taxes, a stable workforce, and government investment incentives, resulting in an exceptionally high GDP per capita. Its robust economy is mirrored in its impressive export figures, with $31.6 million (£24.1m) generated in 2023 alone, led by iron products, cars, vehicle parts, gas turbines, and adhesive plastics.
Other small but wealthy countries, including San Marino, Switzerland, and Singapore, also feature in the top 10 wealthiest nations, thanks to their sophisticated financial sectors and tax regimes, which attract foreign investment, talent, and substantial bank deposits. In contrast, the UK ranked 31st, failing to secure a spot in the top 30.
