Why is Luxembourg the richest country in the world?


Quick Answer

As of October 2014, Luxembourg is the second-richest country in the world based on its per capita gross domestic product, according to Dan Carroll for The Motley Fool. This figure measures a country's overall economic output divided by its population, according to Investopedia. Luxembourg's population is more than 540,000 people, and it has a per capita GDP of $79,976.

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Full Answer

Carroll notes that the International Monetary Fund predicts Luxembourg's per capita GDP will rise 10 percent until 2019, especially if the European economy rebounds and more countries invest in banks. Luxembourg, in between Germany and France, is a country known for low business taxes and tax havens for European banks.

The richest country in the world is Qatar, explains Carroll. The oil-rich nation of 1.8 million people has a per capita GDP of $96,992. Qatar is the wealthiest nation in the Middle East, with almost half of its GDP coming from oil and natural gas exports. The IMF believes the country's per capita GDP will rise 22 percent from 2014 to 2019. The United States is seventh in the world for per capita GDP with $55,000.

Global Finance Magazine explains that the per capita GDP of the top 10 richest countries of the world rose from 2009 to 2013 as the global economy recovered from the recession of 2007.

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