Many of the world's richest countries are also the world's smallest.

What do people think when they think about the richest countries in the world? And what comes to mind when they think about the smallest nations in the world? Some would be surprised to find out that the wealthiest nations are also amongst the tiniest.

Some very small and very rich countries—like Luxembourg, Singapore, Switzerland and Ireland—benefit from having sophisticated financial sectors and tax regimes that help attract foreign investments and professional talent. Others like Qatar, Brunei and Kuwait have large reserves of hydrocarbons or other lucrative natural resources.

Shimmering casinos and hordes of tourists are good for business too: Macao, Asia's gambling haven, is the second-most affluent state in the world. Bigger countries with a relatively small population like Norway and the United Arab Emirates, two other oil and gas-rich powerhouses, round up the list of the top 10 richest nations according to the International Monetary Fund (IMF).

But what do we mean when we say a country is “rich,” especially in an era of growing income inequality between the rich and everyone else? While gross domestic product (GDP) measures the value of all goods and services produced in a nation, dividing a country's GDP by the number of the full-time residents is a better way of determining how rich or poor one country's population is relative to another's. The reason why “rich” often equals “small” then becomes clear: these countries’ economies are disproportionately large compared to their comparatively small populations.

However, only when taking into account inflation rates and the cost of local goods and services can we get a more accurate picture of a nation’s average standard of living: the resulting figure is what is called purchasing power parity (PPP), which is often expressed international dollars in order to allow comparisons between different countries.

Should we automatically assume that in nations where this figure is particularly high the overall population is visibly better off than in most other places in the word? Not quite. We are dealing with averages and in any given country, structural inequality can tip the balance in favor of the already privileged.

The Covid-19 pandemic lifted the veil on these disparities in ways few could have ever predicted. While there is no doubt that the wealthiest nations had the resources to help save more lives and jobs, the economic downturn hit low-paid workers harder than those with high-paying occupations. A new kind of inequality also emerged: some people have been able to work from home, some others lost their livelihood and found themselves without a safety net—large holes in the most celebrated welfare systems in the world were exposed. In the meantime, the V-shaped recovery many are still hoping for—a brief sharp economic decline followed by an equally rapid rebound—appears less likely by the day. The IMF, in its World Economic Outlook's June update, anticipates growth in advanced economies at -8.0%, followed by a "sluggish" turnaround in 2021, hardly enough to undo the damage that has been done.

To be sure, when a crisis of such unprecedented magnitude takes place, you'd rather be where welfare and social services can offer a degree of assistance and hospitals have reliable electricity access. In the 10 world's poorest countries, the average per-capita purchasing power is less $1,200, in the 10 richest is over $90,000. However, there is one more reason to be wary of accepting such economic prosperity at face value. The IMF has warned repeatedly that certain numbers should be taken with a grain of salt. For example, Macao, Luxembourg, Singapore, Switzerland and Ireland are all tax havens, which means wealth originally generated in other countries ends up inflating their GDP because of sophisticated accounting and legal practices. More broadly, it is estimated that over 15% of global jurisdictions are tax havens and that about 40% of global foreign direct investment flows are so-called “phantom” transactions, financial investments passing through empty corporate shells with no real influence on a country’s economy and people’s financial wellbeing. Add to that the unequal distribution of resources, and it becomes easy to understand why even in very rich countries live very poor people.

THE 10 RICHEST COUNTRIES IN THE WORLD

10. Switzerland

Current International Dollars: 66,196 | Click To View GDP & Economic Data

White chocolate, the bobsleigh and—of course—the Swiss Army knife. But also the computer mouse, velcro and LSD. The list just goes and on: these are only some of the inventions that Switzerland has contributed to the world. Today, however, this country of 8.6 million owes much his wealth to its banking and insurance services and to tourism, as well as to exports such as pharmaceuticals products, gems and precious metals, precision instruments and machineries (from watches, to medical apparatuses and computers). Is it really a surprise that Switzerland has the highest density of millionaires in the world? For every 100,000 residents, there are 9,428 of them (billionaires included)—the 11.8% of the total considering just the adult population. All the money in the world, however, could not have shielded the Swiss economy from the effects of Covid-19: in 2020 production is expected to decline by 7%, pushing the country into what is possibly its worst recession since World War II.

9. Kuwait

Current International Dollars: 66,969 | Click To View GDP & Economic Data

The flat Arabian Desert covers most of Kuwait’s territory. It was only in 1938 that oil was discovered under its sands. A lot of oil: Kuwait makes up over 6% of the world’s total reserves. The oil industry accounts today for about 40% of the country’s GDP and over 90% of its exports. With a population of approximately 4.1 million (3 million of which are expats) almost entirely concentrated in urban areas, this small state on the northern edge of the Persian Gulf is one of the Middle East's most advanced and democratic. However, the historical declines in oil prices recorded in recent years have begun to worry the very rich Kuwaitis: in 2015, the government announced the first budget deficit in more than a decade—a few others followed after that.

The country has since then taken steps to diversify its economy by allowing 100% foreign ownership in a number of sectors and offering various tax breaks to investors. The story, however, is entirely different when it comes to foreign workers. Faced with the economic uncertainty brought by the pandemic, the National Assembly has recently passed a bill to drastically reduce their number as a consequence of the rising demand for jobs among locals. Hundreds of thousands of livelihoods—along with the crucial remittances contributing to countries such as India, Egypt and the Philippines—are at stake.

8. United Arab Emirates

Current International Dollars: 69,434 | Click To View GDP & Economic Data

Agriculture, fishing and trading pearls: these used to be the economic mainstays of this Persian Gulf nation. Then oil was discovered in the 1950s and everything changed. Today, its highly cosmopolitan population enjoy considerable wealth, traditional Islamic architecture mixes with glitzy shopping centers, and workers come from all over the world lured by tax-free salaries and year-round sunshine (to the extent that only about 20% of the people living in the country are actually locally-born). The United Arab Emirates’ economy is also becoming increasingly diversified. Outside the traditionally dominant hydrocarbon sector, trade and finance, as well as construction and tourism, are major industries. This year, however, its beaches and hotels will remain empty. The city was supposed to hold the much anticipated Dubai World Expo, the biggest event it has ever hosted with some 25 million overseas expected to visit. For obvious reasons, it had to be postponed to next year.

7. Norway

Current International Dollars: 76,684 | Click To View GDP & Economic Data

Since the discovery of large offshore reserves in the late 1960s, Norway’s economic engine has been fueled by oil. As western Europe’s top petroleum producer, the country has benefitted for decades from rising prices. Not anymore: after prices crashed, the global pandemic ensued, sending the krone in freefall. Today, this export-reliant economy faces its first recession since the global financial crisis. Does it mean that it will become significantly less wealthy? Probably not. In June, just weeks after cutting the interest rates to zero, the governor of the country’s central bank said he was surprised by the speed and strength of the rebound in productivity.

On the other hand, when it comes to any economic problem fate might throw at them, Norwegians can always count on their $1.2 trillion sovereign wealth fund, the world's largest. Not only that, they know that with great riches comes great responsibility: contrary to many other rich nations, high per capita GDP figures are truly a reflection of people’s financial wellbeing. Norway has one of the lowest income inequality gaps in the world.

6. Ireland

Current International Dollars: 83,399 | Click To View GDP & Economic Data

Until recently, Ireland seemed unstoppable. While the rest of Europe was facing all sort of uncertainties (Brexit, trade tensions with the U.S., refugee and migrant crises to name a few), the Irish economy just kept humming along: in 2019, while the Eurozone grew only 1.2%, it expanded by over 5.5%, consolidating its role as the fastest-growing country on the continent. A nation of fewer than 5 million inhabitants, Ireland was one of the hardest hit by the global downturn. Following some politically difficult reform measures, including sharp cuts in public-sector wages and restructuring its banking industry, the island nation regained its fiscal health, boosted its employment rates and saw its per capita GDP almost double to its current levels. Do citizens feel twice as rich as 10 years ago? Probably not: Ireland is one of the world's largest corporate tax havens, with ordinary people benefitting infinitely far less than companies do. And while they are undoubtedly better off than they used to, according to data from the OECD the national household per-capita disposable income is actually lower than the overall member countries' average, about $25,300 a year versus $33,600. With a considerable gap between the richest and poorest (the top 20% of the population earns almost five times as much as the bottom 20%) most families would balk at the idea that they are wealthy, especially now that the economy is projected to shrink more than 7% by year end.

5. Brunei Darussalam

Current International Dollars: 80,383 | Click To View GDP & Economic Data

1,788 rooms, including 257 bathrooms, a banquet hall that can accommodate up to 5,000 guests, a mosque for 1,500 people, an air-conditioned stable for 200 polo ponies, 5 pools and 18 elevators: this is where Hassanal Bolkiah, the Sultan of Brunei, lives. His fortune—derived from the immense reserves of oil and natural gas of the country—is estimated at about $28 billion, more than 50 times that of Britain's Queen Elizabeth. Despite Bolkiah's opulence, and an on-paper per-capita purchasing power of over $80,000, malnutrition in Brunei is commonplace. Although the data is scarce, it has been estimated that out of its 450,000 population up to the 40% earns less than $1,000 a year. Luckily, the country was spared the worst of the Coronavirus pandemic: in July, noting that no new cases of infection had been recorded in more than two months, Brunei's Ministry of Finance and Economy stated that in the first quarter of the year—as most other nations were already sliding into a recession—the economy had grown by 2.4%.

4. Singapore

Current International Dollars: 103,181 | Click To View GDP & Economic Data

With an estimated net-worth of $16 billion, restaurateur Zhang Yong is the richest person living in Singapore. Close-second with assets of about $14 billion (to some people's surprise) is Eduardo Saverin, the co-founder of Facebook, who in 2011 left the U.S. with 53 million shares of the company and became a permanent resident of the island nation. Saverin did not choose it just for its urban attractions or natural gateways: Singapore is an affluent fiscal haven where capital gains and dividends are tax-free.

But how did Singapore become so prosperous? When the city-state became independent in 1965, one-half of its population was illiterate. With virtually no natural resources, Singapore pulled itself up by its bootstraps through hard work and smart policy, becoming one of the most business-friendly places in the world. Today, Singapore is a thriving trade, manufacturing and financial hub (even most importantly 97% of the adult population is now literate). That is not as saying that it has been immune from the effects of the global downturn: in the second quarter of the year the economy plummeted a record 41%, knocking the country into recession for the first time in a decade.

3. Luxembourg

Current International Dollars: 108,950 | Click To View GDP & Economic Data

You can visit Luxembourg for its castles and beautiful countryside, its cultural festivals or gastronomic specialties. Or you could just set up an offshore account through one of its banks and never set foot again, as many do. It would a pity though: situated at the very heart of Europe, this nation of about 600,000 has plenty to offer, both to its tourists and its citizens. Luxembourg uses a large share of its wealth to deliver better housing, healthcare and education to its people, who by far enjoy the highest standard of living in the Eurozone. Yet, while both the global financial crisis and the pressure from the EU and OECD to reduce banking secrecy have had little impact on the economy, the coronavirus outbreak forced many businesses to close and workers to lose their jobs. Statec, the national government statistics service, has already stated that it expects the recession to be as short as it has been sharp, and that in 2021 the grand duchy's GDP will rebound by 7% from -6% this year. The country topped the $100,000 mark in per capita GDP in 2015 and never looked back ever since. Even the pandemic is unlikely to change that.

2. Macao

Current International Dollars: 114,362

In Asia's gambling capital many are betting that Macao will climb to the first spot of the richest nation’s ranking very soon. Formerly a colony of the Portuguese Empire, since the gaming industry was liberalized in 2001 this special administrative region of the People's Republic of China has seen its wealth growing at an astounding pace. With a population just over 600,000, and more than 40 casinos spread over a territory of about 30 square kilometers, this narrow peninsula just south of Hong Kong is—almost literally—a money-making machine.

But how can you gamble and social distance at the same time? While Macao has certainly recorded a severe slowdown in activity (which resulted in the firing of scores of migrant workers), it also has managed the health emergency successfully, with less than 50 overall initial cases, no new infections since and no fatalities. In July, the city has re-opened to travelers from the mainland without requiring them to undergo 14-days of mandatory quarantine. Macao, it turns out, can do very fairly well also without foreign tourists: in 2019, out of almost 40 million visitors, nearly 71% of them were from continental China.

1. Qatar

Current International Dollars: 132,886 | Click To View GDP & Economic Data

About $15,000 is, on average, how much each Qatari citizen has lost every year since the hydrocarbon prices started dropping in 2014. Still, the country’s oil, gas and petrochemical reserves are so large, and its population so small—just 2.8 million—that this marvel of ultramodern architecture, luxury shopping malls and fine cuisine has managed to top the list of world's richest nations for 20 years.

Will it retain this record? With only about 12% of the residents being Qatari nationals, the country—similarly to many other Gulf states—saw Covid-19 spreading among low-income migrant workers living in crowded quarters at furious speed: by mid-July, tallying one of the world's highest per capita rates of infection, the number of confirmed cases was exceeding 100,000. Yet, surprisingly, the economy is projected to keep growing over the medium term amid a rise in gas production and investment in preparation of the 2022 World Cup. By then, hopefully, social distancing on the stands will not be required.

Rank Country GDP-PPP ($) 1 Qatar 132,886 2 Macao SAR 114,363 3 Luxembourg 108,951 4 Singapore 103,181 5 Ireland 83,399 6 Brunei Darussalam 80,384 7 Norway 76,684 8 United Arab Emirates 69,435 9 Kuwait 66,387 10 Switzerland 66,196 11 United States 65,112 12 Hong Kong SAR 64,928 13 San Marino 61,575 14 Netherlands 58,341 15 Iceland 56,066 16 Saudi Arabia 55,704 17 Taiwan Province of China 55,078 18 Sweden 54,628 19 Denmark 53,882 20 Germany 53,558 21 Austria 50,931 22 Australia 50,725 23 Bahrain 49,529 24 Canada 48,246 25 Belgium 49,529 26 Finland 47,975 27 Malta 47,405 28 Oman 47,366 29 France 47,223 30 United Kingdom 46,828 31 Japan 45,546 32 South Korea 44,704 33 Spain 41,592 34 Cyprus 41,407 35 New Zealand 40,943 36 Italy 40,470 37 Aruba 39,121 38 Puerto Rico 40,067 39 Israel 39,121 40 Czech Republic 38,834 41 Slovenia 38,462 42 Lithuania 36,701 43 Slovak Republic 36,640 44 Estonia 35,852 45 Hungary 34,046 46 Poland 33,665 47 Portugal 33,665 48 The Bahamas 33,665 49 Malaysia 33,333 50 Trinidad and Tobago 32,881 51 Seychelles 31,693 52 Latvia 31,402 53 St. Kitts and Nevis 30,578 54 Greece 30,252 55 Russia 29,642 56 Antigua and Barbuda 29,346 57 Kazakhstan 28,849 58 Turkey 28,264 59 Romania 27,887 60 Croatia 27,729 61 Panama 26,822 62 Chile 26,317 63 Mauritius 24,996 64 Bulgaria 24,595 65 Uruguay 23,581 66 Maldives 23,312 67 Equatorial Guinea 21,300 68 Mexico 20,868 69 Belarus 20,644 70 Turkmenistan 20,411 71 Thailand 20,365 72 Montenegro 20,084 73 Argentina 20,055 74 China 19,504 75 Dominican Republic 19,411 76 Gabon 19,057 77 Barbados 18,921 78 Barbados 18,921 79 Azerbaijan 18,616 80 Serbia 18,564 81 Botswana 18,558 82 Costa Rica 18,037 83 Iraq 18,025 84 Iran 17,662 85 Grenada 16,717 86 North Macedonia 16,486 87 Brazil 16,462 88 Palau 16,234 89 Algeria 15,696 90 Colombia 15,541 91 Suriname 15,532 92 Lebanon 15,049 93 Peru 14,719 94 St. Lucia 14,492 95 Mongolia 14,309 96 Bosnia and Herzegovina 14,220 97 Egypt 14,023 98 Indonesia 13,998 99 Albania 13,991 100 Sri Lanka 13,897 101 South Africa 13,754 102 Paraguay 13,584 103 Tunisia 12,661 104 St. Vincent and the Grenadines 12,454 105 Kosovo 12,322 106 Georgia 12,227 107 Fiji 12,147 108 Dominica 12,008 109 Ecuador 11,742 110 Namibia 11,266 111 Eswatini 11,160 112 Armenia 10,866 113 Bhutan 9,876 114 Ukraine 9,774 115 Jamaica 9,692 116 Jordan 9,649 117 Philippines 9,471 118 Libya 9,358 119 Morocco 9,235 120 Guyana 9,094 121 Uzbekistan 9,000 122 Nauru 8,999 123 Guatemala 8,705 124 Belize 8,664 125 India 8,378 126 El Salvador 8,313 127 Bolivia 8,172 128 Lao P.D.R. 8,110 129 Vietnam 8,066 130 Cabo Verde 7,729 131 Moldova 7,703 132 Republic of Congo 7,174 133 Ghana 6,956 134 Angola 6,752 135 Myanmar 6,707 136 Tonga 6,486 137 Samoa 6,152 138 Nigeria 6,054 139 Pakistan 5,872 140 Djibouti 5,568 141 Honduras 5,395 142 Nicaragua 5,290 143 Timor-Leste 5,254 144 Bangladesh 5028 145 Mauritania 4,881 146 Cambodia 4,664 147 Còte d'Ivoire 4,457 148 Tuvalu 4,277 149 Zambia 4,148 150 Sudan 4,072 151 Kyrgyz Republic 4,056 152 Papua New Guinea 3,983 153 Cameroon 3,955 154 Kenya 3,875 155 Marshall Islands 3,868 156 Senegal 3,853 157 Lesotho 3,614 158 Tajikistan 3,589 159 Micronesia 3,562 160 Benin 3,446 161 Tanzania 3,402 162 Sao Tomè and Prìncipe 3,387 163 Nepal 3,318 164 Vanuata 2,957 165 Comoros 2,799 166 The Gambia 2,746 167 Zimbabwe 2,702 168 Uganda 2,631 169 Ethiopia 2,511 170 Chad 2,480 171 Mali 2,471 172 Rwanda 2,452 173 Guinea 2,441 174 Solomon Islands 2,303 175 Yemen 2,280 176 Kiribati 2,138 177 Afghanistan 2,095 178 Burkina Faso 2,077 179 Guinea-Bissau 2,019 180 Haiti 1,878 181 Togo 1,826 182 Madagascar 1,699 183 Sierra Leon 1,690 184 South Sudan 1,602 185 Liberia 1,414 186 Mozambique 1,303 187 Malawi 1,240 188 Niger 1,106 189 Eritrea 1,060 190 Democratic Republic of the Congo 849 191 Central African Republic 823 192 Burundi 727

Source: International Monetary Fund, World Economic Outlook October 2019. Values are expressed in current international dollars, reflecting the corresponding exchange rates and PPP adjustments.