enru

Business & Economy03 august, 2022

GPD per capita in Luxembourg highest in the world

€138,001 or $140,694. This is, according to the Global Finance report, the current GDP per capita in Luxembourg. The publication officially recognized the Grand Duchy as the richest country in the world in 2022.

GPD per capita in Luxembourg highest in the world

In 2021, the country’s total GDP rose by 6.8%. This is seen as a strong and rapid recovery from the pandemic years.

The Grand Duchy passed the $100,000 GPD per capita mark back in 2014. That figure has been steadily rising ever since. Experts have no doubt that the Luxembourg economy will survive the current energy crisis and the consequences of the war in Ukraine. Just as it withstood all the problems and difficulties associated with COVID-19.

Luxembourg attracts businessmen with its tax policy and a developed financial investment sector. The Grand Duchy is also a paradise for tourists. Delicious food, great cultural sites as well as mesmerizing views attract people from all over the world.

Germany, Belgium and France took 19th, 22nd and 26th places, respectively. Luxembourg is followed by Singapore and Ireland in the top three.

A nuance in calculating the GPD per capita

Luxembourg is undeniably wealthy. However, Global Finance’s analysis misses one important point. Several hundred thousand cross-border workers are currently employed in the country. The profit they bring to the state is included in GDP per capita. But the cross-border workers themselves are not considered a part of the population.

Whether this makes the Global Finance’s list inaccurate is hard to judge. What if these cross-border workers were considered in the analysis? Luxembourg would probably move down by at least a few positions.

In such a situation, it is especially important that Luxembourg spends a significant part of its acquired wealth on good housing, medicine and education for its employees. The more cross-border workers eventually settle in Luxembourg, the closer the Grand Duchy will be to actual undeniable leadership in the list of the richest countries.

Share:
Done!

Author: Danila Pushnoy

Read full article: RTL

Similar news