To tell exactly what countries are the richest in the world, relevant performance indicators are needed. It would be counterproductive to use just the gross domestic product (GDP) since the total value of all goods and services produced in a country per year does not demonstrate the per-capita income. For example, in a country with high GDP and a population over one billion, its per-capita GDP will be lower compared to a less populated country.
Every year, the International Monetary Fund (IMF) compiles its rating of the richest countries. It ranks the countries by GDP per capita at Purchasing Power Parity (PPP), the rate at which a national currency is converted into US dollars to buy the same amounts of goods and services.
The IMF rating is averaged and does not reflect some important factors such as the unusually fast development of offshore jurisdictions. However, it can still provide a general overview of the countries’ wealth.
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