An International Monetary Fund report reveals that the richest country isn’t always the largest, challenging conventional notions about wealth and scarcity. The IMF announces Singapore as the 3rd richest country in the world, dismissing the size-to-wealth equation.
With Gross Domestic Product (GDP) pegged to the purchasing power parity (PPP) per capita, the IMF declared Singapore the 3rd richest country in the world.
In 2017, the small city-state’s GDP comes in at US$91,000 ($124,600), as 4th highest in the world. Credit Suisse also ran a recent report ranking Singaporeans as the richest population in Asia at number 10, with a wealth of close to US$277,000 ($379,100) per adult.
With a population of 5.6 million, Singapore has continuously grown since last year when the global electronics trade has rebounded.
Supporting a population of 5.6 million, Singapore has experienced continuous growth, notably since last year when the global electronics trade rebounded. The wealth of this city-state – now the 3rd richest country in the world – is largely based on its financial services sector, a thriving chemical export industry, and noninterventionist economic strategies, all promoting growth and innovation. Besides high GDP, Singapore boasts the second busiest port worldwide, adding to its economic strength.
Last year, the Economist Intelligence Unit (EIU) ranked Singapore as the world’s most expensive city, a title that Singapore has consistently clinched for 4 consecutive years.
High quality of living
The annual Mercer Index places Singapore at the top position as a city with the highest quality of living in Asia for expatriates. Globally, Singapore ranked 25th, after big cities like Vienna and Amsterdam.
Singapore’s quality of living and infrastructure have consistently surpassed the other cities in Asia, even though the index showed that other Asian cities have also seen an “exponential increase in living standards” due to a “rapidly expanding middle class and more affluent populations.”
Singapore owes its current economic position to its being a fairly exceptional place. It is a city, a province, and a country all rolled into one. Its robust government is navigating the economy with a mixture of light-touch regulation and strong enforcement of contracts. As a result, Singapore becomes a lure to international investors simultaneously pulling the world’s talented workforce making it a nest for innovators and workaholics.
Frequently Asked Questions
- What is the richest country in the world?
The richest country in the world can vary based on the metrics used to measure wealth. If considering Gross Domestic Product (GDP) per capita, Luxembourg ranks first. For wealth based on purchasing power parity (PPP), Qatar is considered the richest. The United States has the largest economy in terms of nominal GDP. However, based on a report from the International Monetary Fund (IMF), Singapore is the 3rd richest country in the world when considering GDP per capita indexed to Purchasing Power Parity (PPP), indicating a high standard of living when cost of living is factored in. The specific answer can thus vary depending on the metrics used to determine wealth.
- Why is Singapore considered one of the richest countries in the world?
Singapore’s wealth is primarily due to its thriving financial services sector, significant chemical export industry, noninterventionist economic strategies, and a high GDP per capita. Also, it has the second busiest port in the world.
- How does Singapore’s quality of life compare to other countries?
The Mercer Index ranks Singapore as the city with the highest quality of life in Asia for expatriates, and 25th globally, surpassing many large cities.
- Why is Singapore known as the world’s most expensive city?
The Economist Intelligence Unit (EIU) has named Singapore the world’s most expensive city for four consecutive years due to the high cost of living, including housing, transportation, and consumer goods.
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