Nauru: riches to rags to riches Devpolicy Blog from the Development Policy Centre

Here are five charts that place the development in perspective. Qatar has experienced rapid economic growth over the last several years due to high oil prices. We will then move from a culture of high subsidies leaked to corrupt middlemen to a culture of high productivity. On paper – mathematically – Indian poverty should disappear by 2050. The reason it won’t is that huge inequalities in income will persist unless we rapidly implement second-generation economic reforms which deliver real benefits to the bottom of India’s socio-economic pyramid. For instance, India’s expenditures on education (4.5 per cent of GDP in 2019) and health have been consistently below the corresponding levels in many countries.

The other big five are at a different level altogether, although India is ahead of Bangladesh in this case. The UK is a developed country and has the world’s sixth-largest economy by nominal GDP and seventh-largest economy by purchasing power parity. It possesses the world’s fifth largest economy measured by GDP, the ninth-largest economy measured by purchasing power parity.

  • FY13/14 to FY15/16 figures were taken from the financial statements of each year.
  • In the picture above, we have tried to find countries comparable to Indian states based on GDP per capita .
  • However, as things stand today, the relative positions have reversed even though India has made giant strides in curbing poverty.
  • Ranked among the most competitive nations, Sweden has the lowest Gini coefficient of all countries making it the most equal country in the world.
  • Another indication of worsening household finances is the number of insurance policies surrendered prematurely.

The data shared above is available on the official website of IMF as well. According to McKinsey & Co, the top richest countries in the world are—China, the United States, Germany, France, the United Kingdom, Canada, Australia, Japan, Mexico, and Sweden.

So it’s not as if there was any huge decline in the rate of growth. Of course, that doesn’t preclude the possibility that Indian growth, too, may have taken off if the country was not under the highest per capita income in world thumb of the British. But China continued to be an independent country, albeit one much plagued by the Western powers, and its rate of growth too during the period was nothing to be proud of.

India needs to go for open trade

While the Indian economy might have surpassed that of the UK and France a few years back, the average income of an Indian remains abysmally low in comparison to these countries. This also needs to be mentioned alongside the fact that the Indian economy is now the world’s fifth largest. Per capita GDP is a measure of the total output of a country that takes the Gross Domestic Product and divides it by the number of people in that country. GDP per capita is an important indicator of economic performance and a useful unit to make cross-country comparisons of average living standards and economic wellbeing.

highest per capita income in world

The league table assesses 53 major economies on 12 datapoints related to virus containment, the economy and opening up. The government has not overlooked these sectors, but it is time to go beyond monetary support if we want to carve a space in the global markets. The International Monetary Fund ranks each country each year based on its per capita GDP. Here is a list of the top 10 nations the highest per capita GDP as of September 2021. The World Inequality Report 2022 shows that the richest in India increased their share of wealth in 2021 by a historic degree.

As its phosphate income dwindled in the 1990s, government expenditure began to exceed revenue. In the late 1990s, Nauru grew desperate and as a result faced criticism for being an offshore tax haven and for selling passports – strategies it eventually dropped. The value of the Nauru Phosphate Royalties Trust , plunged from $1.3 billion in 1990 to $0.3 billion in 2004, and by then the government was deep in debt, and struggling to pay its bills.

List of richest countries in the world 2022: Top 10 richest countries in the world at a glance

Household income is adjustable gross income at an individual level, meaning that it is the income left after tax. The country of Kuwait is full of wealth generated from the small petroleum-based economy, making it one of the richest countries in the world. With the small population of only 4 million people, the per capita per person in the country is very high, pushing it to be as the greatest economies in the world. They have enough petrol that counts for over half of Kuwait’s GDP and is expected to continue growing.

highest per capita income in world

An equivalent country for Goa is the Caribbean country, Antigua and Barbuda with GDP per capita of $22,460. Goa is also the state with the highest GDP per capita in India. This topic would not be so interesting if Cuba were not so astonishing. Columbus had a point when he described Cuba as “the most beautiful land human eyes have ever seen.” Today the Cuban Revolution has offered unique inspiration to millions of visionaries fighting oppression. But Cuba has also become a symbol of how visions can be delusions.

Its first growth surge from 1993 to 1997 followed the adoption of a new currency that ended a decade of hyperinflation while its second growth surge from 2003 to 2013 was aided by an international commodities boom. Adjusting for GNI size, India has fewer large firms (with upwards of $1 billion in annual revenues) and mid-size firms (with revenues between $50 million and $1 billion) than several other countries. Figure 1displays a range of possibilities for India’s per-capita GNI over the next 26 years, when India will have completed 100 years as an independent nation. The blue line represents an optimistic scenario where India’s growth rate averages 9 per cent annually. If it comes true, then India’s per-capita GNI in 2047 would be approximately $21,400—more than 9 times greater than what it is today. The red line represents a pessimistic scenario where India’s growth rate averages 4 per cent per year.

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The World Bank currently classifies countries whose per-capita GNI lies between $1,036 and $4,045 as lower middle-income countries and those whose per-capita GNI lies between $4,405 and $12,235 as upper MICs. In the picture above, we have tried to find countries comparable to Indian states based on GDP per capita . The HDI is itself a pathetically incomplete conception of human development. First, the components of each national index are national averages of health, education and income outcomes, whereas real-life human development involves aspects of distribution beyond sheer averages. Since here we are majorly talking about the per capita income, you should know that per capita income is the measure of the amount of money earned per person in a country or a geographic region. This per capita income is often used to evaluate how much income there is per person living in a particular area, which in turn tells you about the standard of living and quality of life in that particular area.

highest per capita income in world

Rather, it is time to rethink how to measure growth that reflects people’s wellbeing (in terms of individual/household incomes and employment). Business portal CMIE data shows the unemployment rate remains elevated at 8% in August 2022. The employment rate, or worker population ratio , particularly among youth (15-24 years), continues to fall and remains far below developed countries. From 20.9% in FY17, youth employment has fallen to 10.4% in FY22. And no, this is not because more youth are opting for higher education and delaying employment, as many may believe. Well, the growth of India’s GDP between 1500 and 1600 was 22.7%, between 1600 and 1700 it was 22.2% and between 1700 and 1820 it logged 21%.

The corrected IMF-WEO data bears good tidings for India’s $5 trillion economy dream

This is one of the most fundamental differences between the two countries. As of 2022, India has a population of 1.41 billion while the UK’s population is 68.5 million. In other words, India’s population is 20 times that of the UK’s. And as Chart 2 alongside shows, this gap is unlikely to be bridged in a hurry. Real Gross Domestic Product is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.

FY18/19 and FY19/20 figures were taken from the fourth quarter financial report. All of the Nauruan government documents can be found at this link. To adjust these figures to 2019 A$ terms, the GDP deflator series for Nauru provided by the World Bank was used. The GDP deflator is the ratio of a country’s GDP in current local currency to GDP in constant local currency.

This ratio is used to compare and conceptualise measurements per person. The ratio can also be used to provide different information depending upon where and how it is used. To understand the importance of per capita income in the economic and business world, we need to go through the basics of this term and see how it is calculated and used in different ways. A growth of top 1% is not a healthy measure of GDP or growth in GDP.

The real Gross Domestic product growth of 6-6.5% in a world full of uncertainties is the new normal and India is set to be the third largest economy by 2029. Brunei has the second highest Human Development Index among the South East Asia nations after Singapore, and is classified as a developed country. The world’s 24th most-developed country is ranked among the world’s top ten in terms of quality of life.

That the determinants of economic growth change as a country’s per-capita income levels get higher. When a country’s per-capita income levels are high, demographic and financial efficiency variables do not matter much. Instead, the main drivers of growth become the ability of countries to avoid a banking or financial crisis, the size of government debt and the composition of foreign capital .

Too many are rote-learners, spewed out by coaching classes, not creative thinkers. If a growing GDP is not to become a cruel irony for 445 mn poor people, govt must begin the second stage of economic liberalisation. Stefan Zweig’s proclamation in 1941 that Brazil is the “country of the future” is, ironically, still true. India is the seventh largest country in the world in terms of area and has the second largest population in the world at 1.36 billion.

Angus Maddison, the famed British economic historian who passed away earlier this year, is best known for his estimates of world gross domestic product that go back all the way to the year 1 AD. With their current rapid growth, their share in the world economy is now rising once again. The rate of growth of real GDP has not steadily increased in the last decade. It has fluctuated due to various international and domestic economic pressures. India is likely to join the ranks of middle-income countries in the 2030s but will not have a per-capita gross national income comparable to upper MICs for 25+ years.