Top 60 countries in the world by standard of living 2021

Level of economic development

The level of economic development evaluates the efficiency and maturity of the country's economy. It is not for nothing that only countries with a high level of economic development are included in the developed group, while the rest are called developing. This level is determined by various ratings.

Did you know that there are 252 countries in the world, each with its own unique living conditions? Moreover, among them there are states where even the most ordinary citizen needs practically nothing and lives a full and happy life. But there are also lands where more than 90% of the population can barely make ends meet. In this regard, it would be very appropriate to talk about the countries with the highest standard of living in the world, in which everyone would dream of living. To find out more about this, read the text below.

Rating of countries by GDP

The key indicator is the level of gross domestic product (GDP). This is the name given to the total value of goods, services and other results of the activities of enterprises, firms, companies, institutions, organizations, and individuals. This is the result of the work of all residents of the country in question during the year. It is calculated in two ways. The first is when all income received during the year is added up: interest, profit, salary, and so on. The second is when expenses are summed up (government purchases, investments, consumption, exports minus imports). The official source of such information is the World Bank database. Statistics are updated every year and published in the fall. The indicator is also recorded by the International Monetary Fund and the UN.

The backbone of the world's GDP is produced by only a few countries, mostly large in territory and population.

If all goods and services produced in monetary terms (GDP) are an absolute value, then by comparing the gross domestic product with the population, we obtain a relative indicator indicating the well-being of citizens.

According to the World Bank and the IMF, in 2014 the European Union had the best GDP levels (18.5 thousand dollars). Based on countries, the first places in this indicator are occupied by:

The unemployment rate shows what part of the working-age population cannot find a job. This indicator indirectly characterizes the country’s economy: the higher it is, the worse the quality of life of people and the economic situation in a certain territory.

Economic freedom

The most important indicator of a country's development is the level (or index) of economic freedom. It has been defined by American Research since 1995 and published annually on its website and in the Wall Street Journal.

Experts, based on the theories of Adam Smith, define economic freedom as the level of non-interference by the state in the process of production, distribution and consumption, except in situations where it is necessary to protect citizens.

The index is calculated based on the arithmetic average of ten freedom criteria - property, absence of corruption, government share in regulating the economy, freedom of trade, investment, labor, entrepreneurship, monetary, fiscal, financial. For each of them, a rating scale is developed from 0 to 100 points, which are ultimately summed up. The higher the score, the higher the level of economic freedom.

Prosperity Rating

The economic achievements of countries around the world are also measured by their level of prosperity. This indicator is offered by English analytical. He has been calculating it since 2006. This index is determined by the level of social well-being of countries in the areas of economic development, entrepreneurship, governance, health, safety, education, personal freedoms and social capital. Each of the eight criteria is calculated on the basis of statistical studies by the UN, the World Bank, sociological data from the Gallup Institute and other authoritative centers. Based on the results of comparative studies, a ranking of states is published annually. In 2021, such results were published for 142 countries.

The best indicators on the prosperity index are in Norway, Switzerland, Denmark, New Zealand, Sweden, Canada, Australia, and the Netherlands.

Other indicators

There are other indicators by which the rating of a country's economic development is measured. This is the level of GDP per capita. It is not considered a strict characteristic, but is considered an important indicator. According to the IMF list for October 2021, the leading countries in this index are:

• Luxembourg
• Switzerland
• Qatar
• Norway
• USA
• Singapore
• Australia
• Denmark
• Iceland.

A more accurate characteristic is the level of the same indicator in terms of parity (ratio of several currencies) of purchasing power per capita for a certain set of services or goods. Here the first places in 2014 were taken by:

• Qatar
• Luxembourg
• Singapore
• Brunei
• Kuwait
• Norway
• Emirates
• San Marino
• Switzerland
• Hong Kong
• USA.

The Human Development Index, which has been published in the reports of the UN Development Program since 1990, is another traditional comparative indicator of living standards and the economy. Norway, Australia, Switzerland, the Netherlands, the USA, Germany, New Zealand, Canada, Singapore, and Denmark have a very high human development rating, according to the latest 2014 report.

Based on all these indicators, the strongest and most efficient economies in the world for 2021 are:

Table: ranking of world economies in 2020-2021 according to the UN

Each individual country has its own economic policy, which inherently has both strengths and weaknesses. If a state is rich in mineral resources, then most often the economy is built on the export of resources, which weakens the production component.

10 largest world economies in 2021

In the ranking of countries' economies, the leading positions have been occupied by the same powers for many years; let's look at what strong economies are based on.

USA

• Nominal GDP: $21.44 trillion

GDP based on PPP: $21.44 trillion

Source: ru.wikipedia.org
The United States has maintained its status as the world's leading economy since 1871. In 2019, in nominal terms, its volume amounted to $21.44 trillion. In 2020, $22.32 trillion is predicted.

This country is often called an economic superpower because it makes up almost ¼ of the world economy and is distinguished by the development of infrastructure, technology, and an abundance of natural resources. And this despite the fact that 80% of the country's gross domestic product comes from the service sector.

When assessed on the basis of purchasing power parity, the United States loses first place to the People's Republic of China and lags behind by $6 billion. According to Navy forecasts, the gap will widen, and by 2024 the United States will have $25.79 trillion, and the PRC will have $39.81 trillion.

Japan where to stay

Japan has long been famous for its scientific and technological developments. Japanese researchers have made a significant contribution to the progress of various industries; earthquake-resistant construction, electronic engineering, automotive engineering, industrial robotics, optics, and metallurgy have developed here. After the oil crisis in the early 1970s, the Japanese decided to reduce their dependence on imported fuel, and thanks to American help, they were able to launch 7 nuclear reactors in 2008. Now 34% of Japanese electricity is of nuclear origin. Particular attention is paid to science and education, as evidenced by the numerous Nobel Prizes and other awards received by Japanese researchers. Modern Japan looks like a world from the future, full of innovation and high technology. The Japanese recently announced plans to annually allocate 1% of GDP to further development of the technology sector, which will amount to approximately 26 trillion yen over 5 years. Part of these funds will be allocated to innovation and small start-ups. The world-famous technological giants of Japan are Toyota, Mitsibishi, Toshiba, Sony, Panasonic.

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Ranking of world economies

According to the IMF, the following countries have the greatest financial power.

This list of developed countries of the world is current for 2021. GDP can vary greatly. For example, India's gross domestic product increased by $337 billion in 2021 compared to 2021. In most cases, countries with a high level of economic development increase their prosperity, but sometimes the gross product may fall. For example, this happened in Japan and England.

UK where to stay

At the dawn of capitalism, England was the world's workshop: the British are confident that they were the first to invent the steam locomotive, later the electric and jet engines, the commercial electric telegraph, the Internet and the incandescent lamp. Until now, Great Britain maintains the status of a technologically developed country. The most advanced include local developments in the field of aircraft manufacturing, pharmaceuticals, and the creation of concepts for modern cars. The most famous British brands include the Air Force, British Petroleum, Rolls-Royce, Aston Martin.

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USA

When assessed on the basis of purchasing power parity, the United States loses first place to the People's Republic of China. This gap is expected to narrow by 2023, when the US will reach $24.53 trillion and China will reach $21.57 trillion.

Despite the relatively low employment rate of the population (68%), the average annual income of an American family is $38,000. The United States is one of the most economically developed countries on the planet. More than 86% of citizens are satisfied with housing conditions, level of security and economic stability. The average duration is 79 years.

The USA ranks first in 2021 in terms of GDP

The most stable economy in the world belongs to the United States; it has maintained its leading position for more than 100 years. A comprehensively developed economic policy is based on the banking system, the largest stock exchange, advanced technologies in the field of IT and agriculture, which is not devoid of innovative solutions and progress. America, due to its significant coverage of areas of activity and advanced technologies in them, has great influence in the world and uses it.

Finland

Finland is famous for its high-tech projects. The Finns use their technology for the benefit of the nation. Finland has one of the most modern and technologically advanced healthcare systems.

Finland was home to Nokia, which was the world leader in mobile communications for many years.

Currently, the Finns are focusing on the development of biological sciences, energy and ecology.

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USA

America leads the ranking of world economies due to stability and comprehensive development: agriculture, IT sector, banking system, etc. The United States attracts the best minds to work. About 60% of all world savings are converted into dollars.

Canada

Canada has a highly developed technology sector. The Government of Canada encourages industrial research. The nation specializes in biotechnology research and development, as well as space exploration.

The Government of Canada allocates 1.8 percent of its GDP to research and development. Canada strives to develop science, innovation and technology to significantly improve the quality of life of its citizens.

Canada is home to such famous brands as Bombardier, ATI Technologies, Corel, International Nickel, Alcan, Magna International, Blackberry, Air Canada.

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Germany

Among them are the famous automobile concerns Volkswagen, BMW, Daimler, chemical companies Bayer, BASF, Henkel Group, the Siemens conglomerate, energy companies E.ON and RWE or the Bosch group. Cities such as Hanover, Frankfurt and Berlin host the largest annual international exhibitions and congresses.

Germany is the leading manufacturer of wind turbines and the main developer of solar energy technologies in the world.

At the end of the 19th century, Great Britain, in an attempt to protect its market from second-rate imports, required that German goods be labeled “Made in Germany.”

Now Germany is experiencing a real “boom” in the automobile industry. It owes this to its key market – China.

It is Germany that has the strongest economy among the rest of the EU states

Italy

Italy has the largest percentage of architectural monuments on its territory, is visited annually by crowds of tourists, and the country is an icon of style and taste, becoming a trendsetter. But there is economic inequality in the state, since the north is more industrially developed, and the south is based on agricultural achievements, which are small in the country.

Labor productivity is low, the competitiveness of the main agricultural products produced is very weak. The country does not have many areas suitable for growing crops, so it is a major importer of food products. Currently, the GDP is $2.073 trillion.

South Korea

• Nominal GDP: $1.63 trillion

GDP based on PPP: $2.32 trillion

South Korea is known for such conglomerates as Hyundai and Samsung, but it is not only through their efforts that the republic has penetrated into the strongest economies in the world and has moved closer to the TOP 10. Over the past decades, the country has made incredible progress, becoming one of the global leaders in the field of high technology.

In the 1960s, South Korea was one of the poorest countries in terms of GDP per capita, and now ranks 32nd in the world for this indicator ($44,740). Industrialization and international trade already in 2004 brought it into the “trillionaire club.” In 2019, the South Korean economy grew by 2%.

Now it is one of the world's leading exporters. The country has also created excellent conditions for investing from abroad and doing business.

Netherlands

The Netherlands is home to inventions such as the compact disc, artificial kidney, microscope and telescope. Telecommunications, computer and electronic instrumentation companies have achieved significant success in the Netherlands.

Mechanical engineering, including traditional shipbuilding, is very developed in the Netherlands.

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