Which country is the richest in 2022?

Income and purchasing power

Earned capital is a figure measured and published annually by most countries. It is the gross domestic product, the sum of all domestically generated income. If you convert this income to the number of inhabitants, you get a value that is hardly comparable. This is because income is not measurable over different countries if the money cannot be used to buy the same things.

An income can, therefore, only be compared if the respective countries' price structure is considered. A rented apartment for $500 per month may be standard in many countries, but in a poor developing country, you can purchase half a palace for the same money but buy a sparse little room, at best, in a rich country like Singapore. If we now adjust incomes for purchasing power, we obtain an internationally comparable fictitious currency: the PPP dollar, which stands for Purchasing Power Parity.

The calculations in this table are based on data from 2021. Evaluations for 2022 are expected as usual next spring when the economic data have been collected and published.

Wealth in small countries

It is unsurprising that so many small countries are in the top ranks. The top 20 richest countries include 14 countries with fewer than 10 million inhabitants. Most small countries are not internationally-positioned industrial nations, but generate most of their money from financial products. For example, Qatar and the Arab Emirates sit on huge oil reserves. In Europe, Luxembourg and Ireland are known for providing safe and tax-efficient homes for global players, such as Amazon, Apple, Google, and many others. Many of the countries ranked highly here are also considered tax havens.

At the same time, many small states are much less expensive to supply to the population because transport routes or cables are quickly laid. Providing a country like Luxembourg with nationwide high-speed Internet is completely different than in the US or Australia.

From this point of view, the fantastic rating of the USA (ninth place) is surprising, but Germany (17th) and Australia (19th) are also well placed.

Macau, Las Vegas of the East

In 2020, the gross domestic product in Macau dropped drastically. Due to the travel restrictions attributable to Covid19, hardly any tourists came to the country. Of the previous 55.20 billion USD, only 25.59 billion USD remained in 2020.

The following countries are not sovereign states, but dependent territories or areas of other states:

Further information on the definition of a country can be found in our article, What is a country?

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Understanding the economic landscape of various countries will help you as you prepare for global expansion. Many businesses go global to access greater talent pools, reach new markets, and diversify their teams for better business continuity. With that being said, we’ve listed out the top 15 countries by GDP in 2022 as a guide. Click on any of the links to gain more in-depth reviews of these top countries. This is based on the most recent data available from the World Bank. 

1. United States: $20.89 trillion
2. China: $14.72 trillion
3. Japan: $5.06 trillion
4. Germany: $3.85 trillion
5. United Kingdom: $2.67 trillion
6. India: $2.66 trillion
7. France: $2.63 trillion
8. Italy: $1.89 trillion
9. Canada: $1.64 trillion
10. South Korea: $1.63 trillion
11. Russia: $1.48 trillion
12. Brazil: $1.44 trillion
13. Australia: $1.32 trillion
14. Spain: $1.28 trillion
15. Indonesia: $1.05 trillion

1. United States

• GDP – Nominal: $20.89 trillion
• GDP per Capita: $63,413
• GDP – Purchasing Power Parity (PPP): $20.89 trillion

A number of factors contribute to the success of the United States. An entrepreneurial environment that encourages hard work and long hours certainly helps. But decentralized government, advanced research universities, and favorable regulatory environments also contribute. The United States will likely always be in the top countries by GDP in the world. 

2. China 

• GDP – Nominal: $14.72 trillion
• GDP per Capita: $10,434
• GDP – Purchasing Power Parity (PPP) : $17,204

The Chinese economy, one of the fastest growing economies of the 21st century, now ranked as the second largest economy in the world, is currently valued at a GDP of $14.86 trillion. With China’s Belt and Road Initiative effectively merging its foreign and economic policy, promotion of using the Chinese Renminbi for the use of settlements has increased. The country is increasingly playing an influential role in the global economy. It has been the largest contributor to global growth since the financial crisis of 2008.

3. Japan

• GDP – Nominal: $5.06 trillion
• GDP per Capita: $39,048
• GDP – Purchasing Power Parity (PPP): $5.24 trillion

Japan’s four main islands – Honshu, Hokkaido, Shikoku, and Kyushu – constitute nearly 98% of its land area. It has the world’s 3rd largest economy by nominal GDP and the 4th largest economy by purchasing power parity (PPP).

Ranked as one of most innovative countries in the world, Japan is the world’s largest electronic goods producer and the 3rd largest automobile manufacturer. The country generally has a surplus in annual trade and international investment. The country’s workforce is highly qualified and skilled, proving to be instrumental in organizational growth. All of these factors contribute to Japan being one of the top countries by GDP.

4. Germany

• GDP – Nominal: $3.85 trillion
• GDP per Capita: $45,466
• GDP – Purchasing Power Parity (PPP): $4.45 trillion

Germany has the 4th largest GDP in the world. The total value of exports and imports is equal to 86.9% of GDP. Germany is a European nation with the biggest drivers of its economy being its service industries, including telecommunication, healthcare, and tourism. 

The nation employs a social market economy that emphasizes the value of open-market capitalism and also ensures a number of social services guarantees. The country is ranked #1 in the world for entrepreneurship due to its skilled labor force, highly developed infrastructure, and technological expertise.

5. United Kingdom

• GDP – Nominal: $2.76 trillion
• GDP per Capita: $39,229
• GDP – Purchasing Power Parity (PPP): $2.98 trillion

The United Kingdom (UK), also known as the United Kingdom of Great Britain and Northern Ireland consists of England, Wales, Scotland, and Northern Ireland. It is the 5th largest economy in the world and the 2nd largest in Europe in terms of GDP. The UK ranks high in the annual Global Competitiveness Reports and the World Bank’s Ease of Doing Business Rankings.

6. India

• GDP – Nominal: $2.66 trillion
• GDP per Capita: $1,877
• GDP – Purchasing Power Parity (PPP): $8.68 trillion

The Republic of India is a federal democracy that consists of 28 states and 8 union territories. It is the largest democracy and the 6th largest economy in the world. India has thriving manufacturing, technology, and service sectors. Since 2014, the rate of foreign direct investment (FDI) inflows to India has grown steadily as some key policy changes were incorporated by the government to facilitate this growth. This makes India one of the top countries by GDP in 2022.

Some strategic steps have been taken to stimulate India’s business environment including reforms to remove bottlenecks in key business areas, reducing minimum capital requirement, and simplifying the process of obtaining necessary licenses.

7. France 

• GDP – Nominal: $2.63 trillion
• GDP per Capita: $39,257
• GDP – Purchasing Power Parity (PPP): $2.95 trillion

France is the 7th largest economy in the world. It is the most visited destination in the world and consequently has a thriving tourism industry. Also, foreign trade is an essential component of its economy. 

The value of imports and exports comprise 63% of the country’s GDP. Strong protection of property rights and an efficient regulatory framework encourage investors. France ranks 32 in the World Bank’s 2019 Ease of Doing Business index. There are foreign players in various sectors, and 31 out of Fortune 500 companies are from this prominent EU member.

8. Italy

• GDP – Nominal: $1.88 trillion
• GDP per Capita: $30,657
• GDP – Purchasing Power Parity (PPP): $2.42 trillion

Italy’s economy is the 3rd largest in the Eurozone and the 8th largest by GDP. In addition to its sizable economy, Italy is one of the most influential countries in Europe; it is a key member of the Eurozone, EU, the G7, the OECD, and the G20.

Italy’s diversified economic growth is propelled by the consumer goods industry. GDP’s expenditure side includes 61% of household consumption, 19% of government expenditure, and 17% of the gross fixed capital formation. Exports of services and goods contribute to 30% of GDP while imports account for 27%, adding 3% to GDP.

9. Canada

• GDP – Nominal: $1.64 trillion
• GDP per Capita: $42,080
• GDP – Purchasing Power Parity (PPP): $1.81 trillion

Canada has a mainly service-based economy. The threshold for foreign investment in Canada is CAD 5 million for direct investments, and CAD 50 million for indirect investments. The country has also been a key member of the World Trade Organization (WTO) since 1995. 

It also has extensive trading ties with many nations due to its bilateral and regional Free Trade Agreements (FTAs). A well-educated workforce, multicultural/multilingual coexistence, a thriving economy, and the government’s support for setting up business make Canada a preferred investment destination.

10. South Korea

• GDP – Nominal: $1.63 trillion
• GDP per Capita: $30,644
• GDP – Purchasing Power Parity (PPP): $2.29 trillion

South Korea was considered a developing country until the 1960s. Due to far-reaching economic reforms (referred to as the Miracle of the Hangang River), the country’s economy entered a period of rapid growth (about an annual 10% growth for over 30 years). Today, South Korea‘s GDP is about $2 trillion, and it’s one of the most developed and industrialized countries in the world.

South Korea places great importance on education, innovation and investment into research and development. The country has a highly skilled workforce earning a high median household income. Services provide the majority of the country’s GDP at 59%, with industry is at 38% and agriculture at 2%.

11. Russia

• GDP – Nominal: $1.48 trillion
• GDP per Capita: $9,972
• GDP – Purchasing Power Parity (PPP): $4.02 trillion

Russia has the largest landmass of all countries in the world and boasts natural resources worth $75 trillion, according to World Bank estimates. Ever since the privatization of Russia’s energy and defense-related sectors in the 1990s, the country has taken great strides when it comes to growth. 

Revenues from oil, natural gas, and energy drive the Russian economy. Foreign trade is important as the total value of imports and exports is equal to 46.7% of GDP, making Russia one of the top countries by GDP. 

12. Brazil

• GDP – Nominal: $1.44 trillion
• GDP per Capita: $6,450
• GDP – Purchasing Power Parity (PPP): $3.08 trillion

Brazil’s economy is the 12th largest in the world with an estimated worth of natural resources being $21.8 trillion. This is one of the main reasons Brazil is one of the top countries by GDP in 2020. The country’s diverse and open economy has developed flourishing trade relationships with more than 100 different countries. According to the 2019 Index of Economic Freedom, the total FDI in Brazil was $62.7 billion. 

The Brazilian government promotes foreign investment in scientific and technological infrastructure. Brazil’s moderate climate, excellent infrastructure, supportive government and wealth of natural resources make it a highly favored destination for foreign investment.

13. Australia 

• GDP – Nominal: $1.33 trillion
• GDP per Capita: $51,885
• GDP – Purchasing Power Parity (PPP): $1.31 trillion

Australia has the 13th largest economy in the world, with an overall GDP of $1.33 trillion and a GDP per capita of $51,885. The economy experienced slower growth in 2017, with a 1.96% increase in GDP. 

Having rolled out in early 2017, Australia’s new foreign policy (a type of white paper agenda) has created a roadmap for the country’s economic, security, and foreign policy relations. The nation is ranked as the 12th best country in the world to set up a business due to low entry costs and streamlined procedures.

14. Spain 

• GDP – Nominal: $1.28 trillion
• GDP per Capita: $26,832
• GDP – Purchasing Power Parity (PPP): $1.77 trillion

Spain is the 2nd largest country in the EU. Spain’s economy is facilitated by structural reforms, transparent judicial/regulatory systems, and sound economic institutions. Steady modernization has helped the Spanish economy grow continually with the industry sector contributing nearly 27% to the country’s GDP. The total value imports and exports is equal to 65.5% of GDP.

15. Indonesia

• GDP – Nominal: $1.05 trillion
• GDP per Capita: $4,038
• GDP – Purchasing Power Parity (PPP): $3.33 trillion

Indonesia is the largest economy in Southeast Asia. The county is one on the world’s emerging markets and has been a target of business expansion over the last decade. 

The country’s economy is heavily dependent on domestic market and government budget spending. Since the 1990s, the majority of the economy has been controlled by individual Indonesians and foreign companies. As Indonesia continues to increase their global footprint, they will likely climb as one of the top countries by GDP in 2022.

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