List of countries by GDP (PPP) per capita

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Not to be confused with List of countries by GDP (nominal) per capita.
See also: List of countries by average wage

Countries or territories by GDP (PPP) per capita in 2022.
  >$60,000
  $50,000 – $60,000
  $40,000 – $50,000
  $30,000 – $40,000
  $20,000 – $30,000
  $10,000 – $20,000
  $5,000 – $10,000
  $2,500 – $5,000
  $1,500 – $2,500
  <$1,500
  No data

This article is a list of the countries of the world by gross domestic product (GDP) at purchasing power parity (PPP) per capita, i.e., the PPP value of all final goods and services produced within an economy in a given year, divided by the average (or mid-year) population for the same year. This is similar to nominal GDP per capita, but adjusted for the cost of living in each country.

In 2019, the estimated average GDP per capita (PPP) of all of the countries of the world was Int$ 18,381.[n 1] For rankings regarding wealth, see list of countries by wealth per adult.

Method

The gross domestic product (GDP) per capita figures on this page are derived from PPP calculations. Such calculations are prepared by various organizations, including the IMF and the World Bank. As estimates and assumptions have to be made, the results produced by different organizations for the same country are not hard facts and tend to differ, sometimes substantially, so they should be used with caution.

Comparisons of national wealth are frequently made on the basis of nominal GDP and savings (not just income), which do not reflect differences in the cost of living in different countries (see List of countries by GDP (nominal) per capita); hence, using a PPP basis is arguably more useful when comparing generalized differences in living standards between economies because PPP takes into account the relative cost of living and the inflation rates of the countries, rather than using only exchange rates, which may distort the real differences in income.

This is why GDP (PPP) per capita is often considered one of the indicators of a country's standard of living,[3][4] although this can be problematic because GDP per capita is not a measure of personal income. (See Standard of living and GDP.)

GDP (PPP) and GDP (PPP) per capita are usually measured by international dollar, which is a hypothetical currency that has the same purchasing power in every economy as the U.S. dollar in the United States.

Table

All figures are in current international dollars, and rounded to the nearest whole number.

The table initially ranks each country or territory with their latest available estimates, and can be reranked by either of the sources

* Nearly all country links in the table connect to articles titled "Income in (country or territory)" or to "Economy of (country or territory)".

GDP per capita (current international dollar) by country or  territory or non IMF members 
Country/Territory UN Region IMF[5][6][7] World Bank[8] CIA[9][10][11]
Estimate Year Estimate Year Estimate Year
 Luxembourg * Europe 141,587 2022 134,754 2021 110,300 2020
 Liechtenstein * Europe — — 139,100 2009
 Singapore * Asia 131,426 2022 116,487 2021 93,400 2020
 Ireland * Europe 131,034 2022 106,456 2021 89,700 2020
 Monaco * Europe — — 115,700 2015
 Qatar * Asia 113,675 2022 93,521 2021 85,300 2020
 Bermuda * Americas — 85,192 2021 81,800 2019
 Isle of Man * Europe — — 84,600 2014
 Switzerland * Europe 84,469 2022 77,324 2021 68,400 2020
 Norway * Europe 78,128 2022 79,201 2021 63,600 2020
 United Arab Emirates * Asia 77,272 2022 66,766 2020 67,100 2019
 United States * Americas 75,180 2022 69,288 2021 60,200 2020
 Brunei * Asia 74,196 2022 66,620 2021 62,200 2020
 Cayman Islands * Americas — 72,481 2020 73,600 2019
 San Marino * Europe 72,070 2022 59,572 2020 60,800 2019
 Falkland Islands * Americas — — 70,800 2015
 Hong Kong * Asia 69,987 2022 65,973 2021 56,200 2020
 Denmark * Europe 69,845 2022 64,651 2021 55,900 2020
 Netherlands * Europe 69,715 2022 63,767 2021 54,200 2020
 Taiwan * Asia 69,500 2022 — 24,502 2018
 Austria * Europe 66,680 2022 58,428 2021 51,900 2020
 Iceland * Europe 66,467 2022 57,646 2021 52,300 2020
 Andorra * Europe 65,372 2022 — 49,900 2015
 Sweden * Europe 63,877 2022 59,324 2021 50,700 2020
 Germany * Europe 63,835 2022 57,928 2021 50,900 2020
 Australia * Oceania 62,192 2022 55,807 2021 48,700 2020
 Belgium * Europe 62,065 2022 58,931 2021 48,200 2020
 Gibraltar * Europe — — 61,700 2014
 Finland * Europe 58,659 2022 55,007 2021 47,300 2020
 Macau * Asia 57,929 2022 73,802 2021 54,800 2020
 Bahrain * Asia 57,921 2022 45,411 2021 40,900 2020
 Canada * Americas 57,827 2022 52,085 2021 45,900 2020
 Jersey * Europe — — 56,600 2016
 Malta * Europe 56,338 2022 47,715 2021 39,200 2020
 France * Europe 56,200 2022 50,729 2021 42,000 2020
 United Kingdom * Europe 55,862 2022 49,675 2021 41,600 2020
 Saudi Arabia * Asia 55,802 2022 49,551 2021 44,300 2020
 European Union * Europe 53,960 2022 48,436 2021 44,436 2019
 South Korea * Asia 53,574 2022 46,919 2021 42,300 2020
 Guernsey * Europe — — 52,500 2014
 Israel * Asia 52,173 2022 43,722 2021 38,300 2020
 Kuwait * Asia 51,528 2022 47,303 2020 49,900 2019
 Italy * Europe 51,062 2022 45,936 2021 39,000 2020
 New Zealand * Oceania 50,851 2022 46,420 2021 42,400 2020
 Slovenia * Europe 49,968 2022 43,625 2021 36,500 2020
 Cyprus * Europe 49,504 2022 42,556 2021 37,700 2020
 Czech Republic * Europe 48,919 2022 44,261 2021 38,300 2020
 Japan * Asia 48,813 2022 42,940 2021 41,400 2019
 Spain * Europe 46,551 2022 40,775 2021 36,200 2020
 Aruba * Americas 46,309 2022 31,183 2020 37,500 2017
 Saint Pierre and Miquelon * Americas — — 46,200 2006
 Lithuania * Europe 46,159 2022 42,665 2021 36,700 2020
 Estonia * Europe 46,126 2022 42,192 2021 35,600 2020
 Puerto Rico * Americas 43,820 2022 34,334 2020 33,400 2020
 Guyana * Americas 42,647 2022 24,494 2021 18,700 2020
 Poland * Europe 42,466 2022 37,503 2021 32,200 2020
 Hungary * Europe 42,132 2022 36,753 2021 31,000 2020
 Portugal * Europe 42,067 2022 35,888 2021 32,200 2020
 Greenland * Americas — — 41,800 2015
 Oman * Asia 41,150 2022 31,118 2020 27,300 2019
 Faroe Islands * Europe — — 40,000 2014
 Bahamas * Americas 39,785 2022 34,108 2021 30,800 2020
 Turkey * Asia 38,759 2022 30,472 2021 28,400 2020
 Slovakia * Europe 38,620 2022 33,010 2021 30,300 2020
 Latvia * Europe 38,124 2022 34,469 2021 29,900 2020
 Romania * Europe 38,097 2022 35,414 2021 28,800 2020
 Seychelles * Africa 37,661 2022 29,838 2021 24,400 2020
 Croatia * Europe 37,550 2022 33,801 2021 26,500 2020
 U.S. Virgin Islands * Americas — — 37,000 2016
 Greece * Europe 36,466 2022 31,295 2021 27,300 2020
 Panama * Americas 36,370 2022 31,680 2021 25,400 2020
 Sint Maarten (Dutch part) * Americas — 35,973 2018 35,300 2018
 Guam * Oceania — — 35,600 2016
 British Virgin Islands * Americas — — 34,200 2017
 Montserrat * Americas — — 34,000 2011
 Malaysia * Asia 33,113 2022 29,617 2021 26,400 2020
 Russia * Europe 31,967 2022 32,803 2021 26,500 2020
 New Caledonia * Oceania — — 31,100 2015
 Maldives * Asia 30,888 2022 18,232 2021 13,000 2020
 Kazakhstan * Asia 30,827 2022 28,600 2021 25,300 2020
 Trinidad and Tobago * Americas 29,797 2022 26,868 2021 23,700 2020
 Bulgaria * Europe 29,178 2022 26,705 2021 22,400 2020
 Chile * Americas 28,887 2022 29,104 2021 23,300 2020
 Saint Kitts and Nevis * Americas 27,782 2022 26,256 2021 23,300 2020
 Uruguay * Americas 27,233 2022 24,626 2021 21,600 2020
 Argentina * Americas 26,074 2022 23,627 2021 19,700 2020
 Montenegro * Europe 26,032 2022 22,795 2021 18,300 2020
 Mauritius * Africa 25,372 2022 22,240 2021 19,500 2020
 Costa Rica * Americas 24,837 2022 23,387 2021 19,700 2020
 Northern Mariana Islands * Oceania — — 24,500 2016
 Dominican Republic * Americas 24,120 2022 20,769 2021 17,000 2020
 Serbia * Europe 24,084 2022 21,432 2021 18,200 2020
 Turks and Caicos Islands * Americas — 23,391 2021 21,100 2020
 Mexico * Americas 22,440 2022 20,037 2021 17,900 2020
 Antigua and Barbuda * Americas 22,070 2022 19,838 2021 18,000 2020
 Belarus * Europe 21,709 2022 21,699 2021 19,100 2020
 China * Asia 21,291 2022 19,338 2021 16,400 2020
 Thailand * Asia 21,114 2022 19,210 2021 17,300 2020
 Curaçao * Americas — 20,681 2020 24,500 2019
 Georgia * Europe 19,789 2022 16,997 2021 14,100 2020
 North Macedonia * Europe 19,783 2022 17,918 2021 15,800 2020
 Equatorial Guinea * Africa 19,433 2022 18,127 2021 17,000 2020
 Saint Martin (French part) * Americas — — 19,300 2005
 Botswana * Africa 19,199 2022 17,604 2021 16,000 2020
 Libya * Africa 18,945 2022 23,357 2021 10,300 2020
 Turkmenistan * Asia 18,875 2022 16,194 2019 15,500 2019
 World — 18,722 2021 17,500 2017
 Colombia * Americas 18,693 2022 16,894 2021 13,400 2020
 Iran * Asia 18,663 2022 15,791 2020 12,400 2020
 Grenada * Americas 18,436 2022 16,680 2021 15,100 2020
 Gabon * Africa 18,088 2022 15,598 2021 14,400 2020
 Bosnia and Herzegovina * Europe 17,899 2022 16,847 2021 14,300 2020
 Albania * Europe 17,858 2022 15,646 2021 13,300 2020
 Brazil * Americas 17,684 2022 16,056 2021 14,100 2020
 Azerbaijan * Asia 17,448 2022 15,843 2021 13,700 2020
 Suriname * Americas 17,350 2022 16,676 2021 16,100 2020
 Barbados * Americas 17,314 2022 14,817 2021 12,900 2020
 French Polynesia * Oceania — — 17,000 2015
 Armenia * Asia 16,798 2022 14,630 2021 12,600 2020
 Cook Islands * Oceania — — 16,700 2016
 Moldova * Europe 16,483 2022 15,637 2021 12,300 2020
 Saint Lucia * Americas 16,417 2022 14,051 2021 12,300 2020
 Egypt * Africa 15,959 2022 13,316 2021 12,000 2020
 Saint Vincent and the Grenadines * Americas 15,786 2022 14,021 2021 12,100 2020
 South Africa * Africa 15,556 2022 14,420 2021 11,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 15,273 2022 13,895 2021 11,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 14,638 2022 12,904 2021 11,400 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 14,528 2022 13,976 2021 12,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Europe 14,352 2022 12,721 2021 10,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Europe 14,326 2021 14,220 2021 12,400 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 14,230 2022 14,127 2021 12,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 13,944 2022 12,060 2021 11,000 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 13,611 2022 12,863 2021 11,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 13,324 2022 12,038 2021 10,700 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 13,215 2022 16,319 2020 17,600 2019
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 13,077 2022 11,129 2020 10,900 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 13,075 2022 11,553 2021 8,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 13,030 2022 11,974 2021 9,900 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 12,763 2022 11,661 2021 10,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 12,490 2022 11,595 2021 9,700 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 12,408 2022 10,409 2021 9,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas — — 12,300 2016
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas — — 12,200 2008
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 11,975 2022 10,952 2021 9,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 11,962 2022 10,026 2021 8,700 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 11,377 2020 10,691 2021 11,600 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania — — 11,200 2016
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 11,054 2022 9,816 2021 8,400 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 10,834 2022 15,103 2021 13,500 2019
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 10,791 2022 9,805 2021 8,900 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 10,576 2022 9,669 2021 8,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 10,344 2022 9,120 2021 8,000 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 9,933 2022 9,030 2021 7,900 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 9,931 2022 9,769 2021 8,400 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 9,808 2022 8,144 2021 6,900 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 9,623 2022 6,922 2021 6,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 9,478 2022 8,497 2021 7,000 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 9,166 2022 8,674 2021 7,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 8,460 2022 7,028 2021 6,000 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 8,293 2022 7,334 2021 6,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 7,985 2022 6,613 2021 4,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa — — 7,800 2010
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 7,455 2022 6,581 2021 6,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 7,154 2022 6,332 2021 5,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 7,108 2022 17,528 2011 7,704 2018
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 6,925 2022 5,592 2021 5,000 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 6,780 2022 6,178 2021 5,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 6,769 2022 6,253 2021 5,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 6,663 2022 6,694 2020 6,400 2019
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 6,662 2022 5,878 2021 4,600 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 6,514 2022 5,926 2021 5,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 6,397 2022 5,940 2021 5,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 6,354 [n 2]2022 6,200 [n 3]2021 5,400
6,220		 [n 4]2020
2019
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 6,122 2022 5,024 2021 4,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania — — 6,004 2017
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 5,884 2022 5,459 2021 4,900 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 5,882 2022 6,420 2021 6,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 5,844 2022 5,082 2021 4,400 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania — — 5,800 2003
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 5,771 2022 5,288 2021 4,700 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 5,583 2022 4,683 2021 4,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 4,830 2022 4,345 2021 4,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 4,803 2022 4,288 2021 3,700 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 4,710 2022 4,446 2021 4,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 4,682 2022 3,617 2021 3,400 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 4,677 2022 4,261 2021 3,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 4,450 2022 4,217 2021 4,000 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 4,419 2022 4,065 2021 3,600 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 4,395 2022 4,182 2021 4,000 2019
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 4,271 2022 4,445 2021 4,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 4,183 2022 3,789 2021 3,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 4,113 2022 3,769 2021 3,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 3,904 2022 4,418 2021 3,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 3,808 2022 3,624 2021 3,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania — — 3,800 2004
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 3,675 2022 3,544 2021 3,500 2019
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 3,434 2022 2,600 2021 2,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 3,374 2022 2,933 2021 2,600 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 3,364 2022 3,284 2021 3,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Americas 3,166 2022 3,127 2021 2,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 3,028 2022 2,682 2021 2,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 3,018 2022 2,398 2021 2,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,993 2022 2,879 2021 2,700 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 6,374 2010 — 2,900 2015
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 2,858 2022 3,105 2021 2,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,851 2022 2,057 2021 1,800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,836 2022 2,494 2021 2,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,656 2022 2,462 2021 2,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,640 2022 2,434 2021 2,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,619 2022 2,380 2021 2,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,609 2022 2,447 2021 2,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,555 2022 2,445 2021 2,700 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 2,456 2020 2,079 2020 2,000 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 2,336 2022 2,656 2021 2,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Oceania 2,165 2022 2,172 2020 2,300 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia 2,136 2022 3,689 2013 2,500 2017
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 2,078 2022 1,626 2011 1,600 2017
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,972 2022 1,816 2021 1,600 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,790 2022 1,635 2021 1,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,719 2022 1,591 2021 1,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Asia — — 1,700 2015
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,667 2022 1,553 2021 1,400 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,588 2022 1,658 2021 1,500 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,457 2022 1,342 2021 1,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,443 2022 1,310 2021 1,200 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,328 2022 1,219 2021 1,100 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,322 2022 1,303 2021 800 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 1,088 2022 1,021 2021 900 2020
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 934 2022 1,235 2015 1,600 2017
Lua error in mw.title.lua at line 209: too many expensive function calls. Africa 865 2022 793 2021 700 2020

Footnotes

  1. ^ There have been no exclusive estimate for world average by IMF. For calculating 2019 data, total GDP estimate by IMF[1] have been divided by total population estimates by United Nations Population Prospects.[2]
  2. ^ The name used in the IMF report is "West Bank and Gaza"
  3. ^ The name used in the World Bank report is "West Bank and Gaza"
  4. ^ CIA uses two separated figures when referring to the Palestinian territories, the first is for "West Bank" and the second is for the "Gaza Strip"

Expanding the coverage of illegal economic activities in euro area national accounts

The share of the shadow economy is significant in many European countries, ranging from less than 10 to over 40 percent of GDP.[12] Since 2014, EU member states have been encouraged by Eurostat, the official statistics body, to include some illegal activities.[13][14][15]

Manipulation of data

A peer-reviewed study published in the Journal of Political Economy in October 2022 found signs of manipulation of economic growth statistics in the majority of countries.[16] According to the study, this mainly applied to countries that were governed semi-authoritarian/authoritarian or did not have a functioning separation of powers. The study took the annual growth in brightness of lights at night, as measured by satellites, and compared it to officially reported economic growth. Authoritarian states had consistently higher reported growth in GDP than their growth in night lights would suggest. An effect that also cannot be explained by different economic structures, sector composition or other factors. Incorrect growth statistics can also falsify indicators such as GDP or GDP per capita.[17]

Distorted GDP-per-capita for tax havens

Main articles: Corporate haven § GDP-per-capita tax haven proxy, and Corporate haven § Distorted GDP/GNP

There are many natural economic reasons for GDP-per-capita to vary between jurisdictions (e.g. places rich in Oil & Gas reserves tend to have high GDP-per-capita figures). However, it is increasingly being recognized that tax havens, or corporate tax havens, have distorted economic data which produces artificially high, or inflated, GDP-per-capita figures.[18] It is estimated that over 15% of global jurisdictions are tax havens (see tax haven lists).[19] An IMF investigation estimates that circa 40% of global foreign direct investment flows, which heavily influence the GDP of various jurisdictions, are described as "phantom" transactions.[20]

A stunning $12 trillion—almost 40 percent of all foreign direct investment positions globally—is completely artificial: it consists of financial investment passing through empty corporate shells with no real activity. These investments in empty corporate shells almost always pass through well-known tax havens. The eight major pass-through economies—the Netherlands, Luxembourg, Hong Kong SAR, the British Virgin Islands, Bermuda, the Cayman Islands, Ireland, and Singapore—host more than 85 percent of the world’s investment in special purpose entities, which are often set up for tax reasons.

— "Piercing the Veil", International Monetary Fund, June 2018[20]

In 2017, Ireland's economic data became so distorted by U.S. multinational tax avoidance strategies (see leprechaun economics), also known as BEPS actions, that Ireland effectively abandoned GDP (and GNP) statistics as credible measures of its economy, and created a replacement statistic called modified gross national income (or GNI*). Ireland is one of the world's largest corporate tax havens.

Ireland has, more or less, stopped using GDP to measure its own economy. And on current trends [because Irish GDP is distorting EU-28 aggregate data], the eurozone taken as a whole may need to consider something similar.

— Brad Setser, Council on Foreign Relations, "Ireland exports its Leprechaun", 25 April 2018[21]

The statistical distortions created by the impact on the Irish National Accounts of the global assets and activities of a handful of large multinational corporations have now become so large as to make a mockery of conventional uses of Irish GDP.

— Patrick Honohan, ex-Governor of the Central Bank of Ireland, 13 July 2016[22]

A list of the top 15 GDP-per-capita countries from 2016 to 2017, contains most of the major global tax havens (see GDP-per-capita tax haven proxy for more detail):

International Monetary Fund (2017) World Bank (2016)[23][24]
Rank Country/Territory Type
1  Qatar Oil & Gas
—  Macau Tax haven (Sink OFC)
2  Luxembourg Top 10 Tax haven (Sink OFC)
3  Singapore Top 10 Tax haven (Conduit OFC)
4  Brunei Oil & Gas
5  Ireland Top 10 Tax haven (Conduit OFC)
6  Norway Oil & Gas
7  Kuwait Oil & Gas
8  United Arab Emirates Oil & Gas
9  Switzerland Top 10 Tax Haven (Conduit OFC)
—  Hong Kong Top 10 Tax Haven (Sink OFC)
10  San Marino Tax haven (Sink OFC)
11  United States 59,495
12  Saudi Arabia Oil & Gas
13  Netherlands Top 10 Tax Haven (Conduit OFC)
14  Iceland 52,150
15  Bahrain Oil & Gas
Rank Country/Territory Type
1  Qatar Oil & Gas
2  Luxembourg Top 10 Tax haven (Sink OFC)
—  Macau Tax haven (Sink OFC)
3  Singapore Top 10 Tax haven (Conduit OFC)
4  Brunei Oil & Gas
5  United Arab Emirates Oil & Gas
6  Ireland Top 10 Tax haven (Conduit OFC)
7  Switzerland Top 10 Tax haven (Conduit OFC)
8  Norway Oil & Gas
—  Hong Kong Top 10 Tax haven (Sink OFC)
9  United States 57,467
10  Saudi Arabia Oil & Gas
11  Iceland 51,399
12  Netherlands Top 10 Tax haven (Conduit OFC)
13  Austria 50,078
14  Denmark 49,496
15  Sweden 49,175

See also

References

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  16. ^ "A study of lights at night suggests dictators lie about economic growth". The Economist. ISSN 0013-0613. Retrieved 25 October 2022.
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  18. ^ "How tax havens turn economic statistics into nonsense". Quartz. 11 June 2018.
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  20. ^ a b "Piercing the Veil, FINANCE & DEVELOPMENT, JUNE 2018, VOL. 55, NO. 2". IMF Finance & Development. June 2018.
  21. ^ "Ireland Exports its Leprechaun". Council on Foreign Relations. 11 May 2018.
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