despite being the 2nd smallest continent in the world, Europe makes up for its diminutive size by the wealth of its nation-states. With abundant natural resources and strong trade relationships with the rest of the world, the developed economies of Europe have weathered the storm of the 2007- 2010 financial crisis to show a year- on- year growth in the proceeding period. To see which countries have the most riches at their disposal, let’s look at the rundown of Europe’s top 10 richest countries by GDP per capita.
10. Denmark – $51,643 GDP per capita
Denmark enjoys a small, open market economy, with a high dependence on foreign trade. As a result of its liberal trade policy, Denmark makes exports of 50% of GDP. As a member of the EU, it has the option to join the EMU but has thus far opted to maintain an independent currency. Denmark follows the traditional Nordic social model, with a high tax rate associated with a high level of government-funded services. High taxation contributes significantly to the country’s overall income; in 2017, for example, the total taxes paid amounted to 50.8% of GDP.
9. Austria – $51,936 GDP per capita
Historically, most of Austria’s trade has been with Germany. However, since joining the EU, the country has developed its trading links with other member states and simultaneously drawn a growing number of foreign investors attracted to its access to the single European market and its close ties to other growing EU economies. In 2018, GDP saw growth in previous years and now sits at $51,936, By sector, this breaks down to 1.3% from agriculture, 28.4 % from industry, and 70.3% from service.
8. Germany – $52,801 GDP per capita
The large, highly developed social market economy of Germany has shown significant growth in recent years, and with the 2nd biggest export trade (in the world, it seems in no danger of slowing down anytime soon. Its service sector is the double time largest contributor to GDP (around 70%) while industry contributes 29.1% and agriculture, 0.9%. In terms of trade, vehicles, pharmaceuticals, chemicals, rubber, plastics, and food products constitute the bulk of exports, while the country’s wealth of natural resources (timber, lignite, potash, and salt as the most significant) are also in hot demand.
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7. Sweden – $53,077 GDP per capita
The highly developed export-oriented economy of Sweden has evolved in recent years from an agricultural economy into one with major dependencies on engineering, mining, steep, and pulp. Like many other Northern European countries, Sweden follows the Nordic model of high-income taxes and correspondingly high levels of government-funded services. In terms of revenue, it has the 4th highest total tax revenue as a percentage of GDP in Europe, and 2nd in the Baltic’s (Denmark beats it by a 2% margin). By sector, 65.4% of GDP gots from services, 33% off from industry, and 1.6% from agriculture.
6. Iceland – $54,121 GDP per capita
Iceland’s small economy was heavily hit by the 2007-2010 financial crisis, to the point the country was forced to request emergency funding from the IMF in 2008. Subsequent years, however, have seen it enjoy a complete recovery. Recent growth can be attributed to a booming tourism trade, which now accounts for more than 10% of Iceland’s GDP. Similar growth has been seen in the software and biotech industries. Fishing continues to be a key contributor to the country’s finances, providing 12% of GDP and 40% of export earnings.
5. Netherlands- $56,435 GDP per capita
Since 1959, the sale of natural gas has been one of the Netherlands’ biggest money-spinners, and a major contributor to its large, open economy. Conversely, it’s also been a key factor in the decline of the Dutch manufacturing sector, leading to the economic theory of Dutch disease. The prosperity of the country is heavily dependent on foreign trade, with chemicals, machinery, equipment, and food products serving as primary export commodities. By sector, 70.2% of GDP got from services, 17.9% from industry, and also 1.6% from agriculture.
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4. Switzerland – $63,380 GDP per capita
As one of the world’s biggest free-market economies, Switzerland has seen healthy growth in the last few years. Most of this is down to a highly developed service sector, which includes one of the world’s most significant banking industries and very robust tourism trade. Overall, services make up a healthy 73.7% of GDP. The industry makes up most of the remaining contribution (thanks largely to a pharmaceutical industry which ranks as one of the most competitive in the world), while agriculture makes up less than 1%.
3. Norway – $74,065 GDP per capita
Norway boasts one of the highest standards of living in any European country and a similarly prosperous economy. Its developed, mixed economic structure is heavily dependent on natural resources, and it remains one of the world’s leading petroleum exporters, despite oil production showing a 50% decline since 2000. Compared to other European countries, Norway’s reliance on the industry is relatively high: 34.7% of GDP comes from industry, while 63.5% comes from services and 1.6% from agriculture. Rich in natural resources like oil, gas, timber, and fish, Norway itself has a strong export economy and is also ranked as the world’s largest exporter of seafood after China.
2. Ireland – $79,925 GDP per capita
Despite a stumble in the final quarter of 2018 (triggered by a slowdown in domestic demands and a contraction in construction-related investments), Ireland’s small, modern economy is still one of the strongest in Europe. This owes to a strong export sector, low inflation, and healthy employment growth. Lenient tax residency requirements have historically made Ireland a target for international firms looking to benefit from a low tax rate. While recent years have seen the introduction of more stringent tax laws, the economy is still set to grow in 2019, despite the current uncertain impact of Brexit.
1. Luxembourg- $110,870 GDP per capita
The small, robust economy of landlocked Luxembourg benefits from year on year growth, low inflation, and an equally low unemployment rate. Since 2002, the country’s government has rolled out a series of policies designed to encourage economic diversity and increase foreign investment in the key fields of logistics, ICT, medical research, financial service technologies, and space technologies. when it comes to wealth, Luxembourg’s financial industry is key, accounting for more than 35% of GDP. This owes to the growth in the investment fund sector since the launch of cross-border funds in the 1990s, which has pushed Luxembourg to 2nd position in the ranking of the world’s largest investment fund asset domiciles.
Here is a Quick Highlight Of The Top 10 Richest Countries in Europe As Of 2020.
- Luxembourg– $110,870 GDP
- Ireland – $79,925 GDP
- Norway – $74,065 GDP
- Switzerland – $63,380 GDP
- Netherlands– $56,435 GDP
- Iceland – $54,121 GDP
- Sweden – $53,077 GDP
- Germany – $52,801 GDP
- Austria – $51,936 GDP