A recent study by Global Finance, which analyzed the Gross Domestic Product purchasing power parity (GDP-PPP) worldwide, revealed that Luxembourg claimed the title of the world’s most affluent country in 2024. With a staggering GDP per capita of $143,743, Luxembourg’s wealth is nearly double that of the UK, where the current GDP-PPP per capita stands at around $76,930.
The report highlighted that Luxembourg has maintained a steady rise in GDP per capita from 2010 to 2024, consistently ranking at or near the top among the wealthiest nations. The Grand Duchy of Luxembourg, a small European country nestled between Belgium, France, and Germany, was historically reliant on its iron and steel industry in the 1900s. Home to ArcelorMittal, the world’s largest steel producer responsible for eight percent of global steel output, Luxembourg still derives seven percent of its economy from the steel sector.
Despite its small population of just over 650,000, Luxembourg has transformed into Europe’s leading investment management hub. The nation has experienced a notable increase in prosperity, driven by the rapid expansion of its financial services sector and advancements in technology. Today, Luxembourg is home to over 155 banks and has solidified its position as a global banking and financial powerhouse.
The country’s appeal to foreign investors lies in its expertise in managing international investments, including mutual funds, hedge funds, and pension funds. Luxembourg has also built a reputation as a “business-friendly” environment, offering low corporate tax rates, a stable workforce, and attractive government incentives for investors. This favorable environment has resulted in Luxembourg boasting one of the highest GDPs per capita in the world.
Luxembourg’s strong economy is further reflected in its export performance, generating $31.6 million in 2023, with key exports including iron products, cars, vehicle parts, gas turbines, and adhesive plastics.
Other small but wealthy nations, such as San Marino, Switzerland, and Singapore, also rank among the top 10 richest countries. Like Luxembourg, these nations benefit from sophisticated financial sectors and favorable tax policies, drawing foreign investment, skilled talent, and significant bank deposits. Meanwhile, the UK ranked 31st, failing to make the top 30 in global wealth rankings.
| GDP (nominal) | Capital | Head of State | Head of Government | GDP (nominal) per capita | GDP (PPP) | GDP (PPP) | GDP (PPP) per capita |
|---|---|---|---|---|---|---|---|
| Luxembourg | Luxembourg | Henri, Grand Duke of Luxembourg | Luc Frieden | 89.095 | 135.605 | 94.152 | 143.304 |
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