Liechtenstein - The World's Richest Country for Decades

When considering economic output per capita, the world's wealthiest nations are typically small, developed states located largely in Europe. However, an analysis by VisualCapitalist.com shows that one South American country has followed the model of Gulf states to boost its wealth.

The cited source ranks countries by their Gross Domestic Product (GDP) per capita for the years 2006, 2016, and 2026, using data from the International Monetary Fund (IMF). The figures are expressed in current prices and adjusted for purchasing power parity (PPP).

• Key changes in the rankings

In 2006, Liechtenstein already held the top spot globally, being the only country where GDP per capita ($112,499) reached the six-figure mark. The small Alpine state was followed by neighboring Luxembourg ($96,014) and oil-rich Gulf nations such as Qatar ($86,252) and the United Arab Emirates ($74,230).

Most of the world's wealthiest countries, based on this metric, are small offshore financial hubs, such as Singapore and Switzerland. Various countries have boosted their economic prosperity through diverse means. Singapore, for instance, developed internationally competitive industries, such as semiconductors and pharmaceuticals. Thanks to these industries, the country eventually rose to second place globally in terms of GDP per capita ($173,708) by 2026.

In contrast, Guyana's transformation began with the discovery of a resource that completely altered the country's economic profile.

• How oil transformed Guyana

Oil production in Guyana began only in December 2019. As offshore production expanded, the impact extended beyond the oil sector itself, the cited source notes. Oil revenues helped fund infrastructure and human capital development programs, while public investments bolstered the construction sector and other domestic activities.

For a small economy, the development of a major export industry can rapidly shift per capita output levels. The country's GDP per capita has seen faster growth than anywhere else since 1990. Estimates indicated that by 2026, Guyana would have a higher GDP per capita ($95,477) than any other country in the Western Hemisphere, including the United States ($94,430).

The challenge for Guyana lies in translating these exceptional gains into lasting benefits. Guyana has channeled its oil revenues into a Natural Resources Fund, thereby managing to balance current development needs with future savings. Investment efficiency is crucial, as oil prices can fluctuate sharply, and a higher national average does not automatically translate into better services or higher incomes for every household.

• Ireland: A unique case

Ireland's rise reflects a different type of international interconnectedness: the role of multinational companies. Profits generated by foreign-owned multinationals contribute to domestic output, even when they ultimately flow to overseas owners. This situation can create a significant discrepancy between the size of the economy and the income actually available to residents.

Corporate restructuring can also lead to unusually large spikes. In 2015, the transfer of corporate balance sheets to Ireland-including intellectual property assets-resulted in a dramatic surge in reported GDP. The Irish government even introduced a parallel indicator for measuring economic output to better reflect the activities of these multinational companies.

It is projected that by 2026, Ireland's GDP per capita ($159,129) will be the second-highest in Europe and the third-highest globally.