Contrary to popular belief, the world’s wealthiest country isn’t one of the larger global powers. In fact, many of the richest nations on Earth are surprisingly small.

A report by Global Finance, which analysed the Gross Domestic Product purchasing power parity (GDP-PPP) of countries worldwide, revealed that Luxembourg was the world’s richest country in 2024. With a GDP per capita of $143,743 (approximately £109,000), Luxembourg is nearly twice as wealthy as the UK, which has a current GDP-PPP per capita of £58,880.

The report showed that from 2010 to 2024, Luxembourg saw a steady increase in its GDP per capita, consistently ranking near or at the top compared to other affluent nations. The Grand Duchy of Luxembourg, a tiny country in northwestern Europe bordered by Belgium, France, and Germany, was once reliant on its iron and steel industry in the 1900s.

Home to ArcelorMittal, the world’s largest steelmaker responsible for eight percent of global steel output, the steel industry still makes up seven percent of the nation’s economy today. Despite having a population of just over 650,000, this small European country has evolved into Europe’s most prominent investment management centre over the past few decades.

This tiny nation has experienced a significant surge in wealth, driven by its thriving financial services sector and cutting-edge technological advancements.

Despite its compact size, it hosts over 155 banks and has established itself as a major global hub for banking and finance.

The country’s appeal to foreign investors lies in its expertise in managing international investment activities, such as mutual funds, hedge funds, and pension funds.

Luxembourg has earned a reputation as a “business-friendly” nation, offering low corporate taxes, a stable workforce, and government investment incentives, resulting in an exceptionally high GDP per capita.

Its strong economy is reflected in its impressive export figures, with $31.6 million (£24.1m) generated in 2023 alone, led by iron products, cars, vehicle parts, gas turbines, and adhesive plastics.

Other small but affluent countries, including San Marino, Switzerland, and Singapore, also feature in the top 10 wealthiest nations, thanks to their sophisticated financial sectors and tax regimes, which attract foreign investment, talent, and substantial bank deposits.

In contrast, the UK ranked 31st, failing to secure a spot in the top 30.