Rich and Poorest Contrasts of 2022

 Tuesday 02 August 2022

According to World Financial Reports, these are the best four countries to note: rich but also egalitarian. - Insplash

To know where a country stands financially, it is not enough to figure out its GDP.

Gross domestic product is the sum of all the services and goods that a country produces in a year. The countries with the highest GDP are USA, China, Japan and Germany. However, countries like Singapore and Luxembourg, which are tiny dots on the map, would stand nowhere if GDP were the only measure of wealth.

GDP also does not take into account the distribution of wealth. Therefore, a more accurate way of doing the assessment is to divide the GDP by the country's population i.e. GDP per capita.

However, this type of measurement has its own problems. Income can buy much less in one country than in another. Therefore, it is also important to decide how much a country's residents can buy with their income. GDP has to be adjusted for purchasing power parity of the country. Inflation is also taken into account.

Global Finance reports that it is better for countries to be not only rich but also equal because economic inequality ultimately affects countries equally and hinders development.

With these in mind, the following are the 10 richest countries in the world:

1. Luxembourg

2. Singapore

3. Ireland

4. Diameter

5. Macau SAR

6. Switzerland

7. United Arab Emirates

8. Norway

9. United States

10. Brunei Darussalam

According to the same Messrs., the purest countries in the world are as follows:

1. Liberia

2. Madagascar

3. Chad

4. Malawi

5. Mozambique

6. Niger

7. Somalia

8. Democratic Republic of the Congo

9. Central African Republic

10. South Sudan

11. Burundi

Afghanistan, Lebanon, Sierra Leone and Ukraine were included in the list of poor countries.