The tiny European country that’s the world’s richest

Many could assume that the world’s richest country is among the larger world powers. However, this is so far from the truth. 

In fact, you would be surprised to find out that many of the planet’s wealthiest nations are also among the tiniest.

In a recent data report by Global Finance, which compared the domestic gross product (GDP) of countries around the world, it was unveiled that Luxembourg was the richest country in the world in 2024. 

With a GDP per capita of $143,743 (around £109,820), Luxembourg is over two times wealthier than the UK, the current GDP per capita of which stands at £58,880.  

The Global Finance report revealed that from 2010 to 2024, Luxembourg experienced a steady GDP per capita increase, consistently ranking near or at the top of the charts in comparison to some of the other world’s wealthiest nations. 

The Grand Duchy of Luxembourg, a small country in northwestern Europe and bordered by Belgium, France, and Germany, was once dependent on its iron and steel manufacturing industry in the 1900s. 

Home to the largest steelmaker in the world, ArcelorMittal, which produces eight percent of the world’s entire steel output, the steel industry still accounts for seven percent of the country’s economy today. 

With a population of just over 650,000, this small European country has transformed itself into Europe’s most “notable investment management centre” over the past few decades.

The country has vastly increased its wealth with its extensive financial services and technological advancements. 

Despite its small size, this tiny country is home to over 155 different banks and has become a major worldwide banking and financial centre. 

The country remains particularly attractive to foreign investors, specialising in the administration of international investment activities, such as mutual funds, hedge funds, and pension funds. 

Luxembourg has garnered a reputation around the world as a “business-friendly” country, which offers low corporate taxes, a stable workforce, and government investment incentives – all of which, with its small population, result in an unusually high GDP per capita.

It also comes as no surprise that this tiny location is the world’s richest country. In 2023 alone, Luxembourg generated $31.6million (£24.1m) in its total exports, with exports being led by iron products, cars and vehicle parts, gas turbines, and adhesive plastics.  

Other very small and rich countries which secured a place within the top 10 charts on nations’ wealth included San Marino, Switzerland, and Singapore. 

These countries are also known to benefit from having sophisticated financial sectors and tax regimes, which continuously attract foreign investment, professional talent and large bank deposits. The UK failed to rank in the top 30, earning instead the 31st place.