The Analysis of Global Wealth: Going Beyond GDP to Assess True Economic Health and Well-being

2024-04-29 13:29:00

The analysis of global wealth reveals the need to overcome traditional economic indicators such as GDP. (REUTERS/Clodagh Kilcoyne)

When analyzing the wealth of the countries of the world, it is essential to adopt a perspective that goes beyond traditional economic indicators such as the Gross Domestic Product (GDP). Although GDP was widely used to classify national economies, this measure does not address the distribution of wealth within countries or the quality of life of their countries. citizens. Consequently, the annually published list of the world’s richest countries needs to be examined with a more comprehensive approach.

He GDP per capitawhich adjusts GDP according to population, gives a more accurate view of the wealth available to each person and allows for fairer comparisons between countries of different sizes. However, even this measure has limitations, as it does not consider the disparity in income distribution. Therefore, for a more complete assessment of a nation’s wealth, it is essential to include indicators of economic inequality, access to basic services y sustainability.

GDP per capita offers a more accurate but still limited perspective on the real wealth of citizens. (EFE/EPA/Justin Lane)

Recent global challenges, such as the pandemic COVID-19 and its economic consequences, highlighted the importance of evaluating the wealth of countries not only in terms of economic production, but also in terms of their resilience once morest crisis and its ability to guarantee the well-being of all citizens. Therefore, it is necessary to understand the wealth of nations considering both the economic health As the social and environmental well-being.

“While there is no doubt that the richest nations (often more vulnerable to coronavirus due to their older population and other risk factors) had the resources to better serve those in need, those resources were not equally accessible to all. Furthermore, the economic consequences of the confinements affected the most low paid workers than to those in well-paid occupations and that, in turn, fueled a new kind of inequality between those who might comfortably work from home and those who had to risk your health and safety when traveling to work sites. “Those who lost their jobs because their industries closed completely found themselves without much of a safety net: huge holes in the world’s most famous welfare systems were exposed,” he said. Global Financethe magazine that collected the data for 2023.

Indicators of economic inequality and access to basic services are crucial to assessing a nation’s wealth. (REUTERS/Tim Chong)

He ranking anual of Global Finance reveals the richest countries in the worldcon Ireland topping the list in 2023, rising from third place and surpassing Qatar y Swisswho exchanged positions.

The classification highlights the influence of fiscal policies on the Global economywhere Ireland attracted large multinational corporations with its low corporate tax rate of 12.5%, thus contributing 56% of the value added to its economy in 2022. This phenomenon underlines the debate around jurisdictions acting as tax havens and its impact on the distribution of global wealth.

Global Finance places Ireland at the top of its ranking of richest countries in 2023, highlighting its attractive corporate tax rate. (REUTERS/Imad Creidi/File Photo)

Luxembourg maintains its position as the second richest country, evidencing a rapid post-pandemic economic recovery with growth in 5,1% in 2021. However, the slowdown to a 1,5% in 2022 reflects the challenges faced by advanced economies due to global uncertainty and rising energy and food costs.

San Marinoon the other hand, emerges surprisingly in the Top 10, demonstrating that even the smallest nations can achieve high levels of per capita wealth through competitive tax policieshighlighting its effort to align its regulations with the standards of the European Union.

Luxembourg shows an example of post-pandemic economic recovery while maintaining its position as the second richest country. (REUTERS/Denis Balibouse/File Photo)

1. IrelandPBI: USD 145.196
2. LuxembourgPBI: USD 142.490
3. SingaporePBI: USD 133.895
4. QatarPBI: USD 124.848
5. MacaoSAR (Special Administrative Region): USD 89,558
6. United Arab EmiratesPBI: USD 88.221
7. SwissPBI: USD 87.963
8. NorwayPBI: USD 82.655
9. USAPBI: USD 80.035
10. San MarinoPBI: USD 78.926

Surprisingly to many, Global Finance placed Guyana as the South American country in the highest position in its ranking. The Cooperative Republic of Guyana is ranked 25th with a GDP-PPP per capita of USD 61,099.

Guyana has a diversified agricultural sector that includes the production of a wide range of fruits and vegetables. (REUTERS/Sabrina Valle)

Chile is the second best-ranked country on the continent, settling in the place 64 and with a GDP-PPP per capita of USD 29,935. In 67th place it appears Uruguaywith a GDP-PPP per capita of USD 28,984 and in place number 69, is Argentinawhich has a GDP-PPP per capita of 26,506.

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