The country's economic success is reflected in its GDP per capita.
Luxembourg has an area of only 2,586 km2, smaller than Hanoi city with an area of more than 3,300 km2. Although it is one of the smallest countries in the European Union (EU), this country stands out for having the highest income in the world.
Gross domestic product (GDP) is the value of all final goods and services produced in an economy over a given period of time. GDP per capita means the total income (real or nominal GDP) of a country divided by the total population of that country.
Luxembourg has the highest GDP per capita in the world. This means that the average Luxembourger makes a lot of money. According to International Monetary Fund (IMF) data cited by Visualcapitalist in October 2024, this figure currently stands at over $144,000.
While countries like the US, China, India or Germany often dominate other economic rankings, the US is the only economy to make it into the top 10 list of countries in terms of GDP per capita.
In the early 19th century, about 80% of Luxembourg's population worked as farmers. But then the iron and steel industry brought a turning point for the country. After the discovery of minette - a low-grade iron ore - the Luxembourg steel industry began to boom. Steel mills were continuously expanded and new ones were built. The country's steel industry reached its peak in the early 20th century, employing more than 50,000 people.
However, the Luxembourg steel industry began to decline in the second half of the 20th century, due to competition from other producers around the world and rising energy costs. The last blast furnace closed in 1997. The industry has undergone restructuring and now focuses on producing high-value steel products.
Today, this small Western European country of 669,000 people is known for its strong financial sector, which accounts for 25% of its GDP. Luxembourg boasts an impressive 16,777 investment funds, covering everything from venture capital to asset management and hedge funds. Together, these funds manage €4.5 trillion, demonstrating Luxembourg’s status as a hub for financial and investment activities.
Through these investments, Luxembourg aims to increase economic efficiency, improve the quality of life of its citizens and maintain its position as one of the richest countries in the world.
The country is also known as a “tax haven” with low corporate taxes and no capital gains tax. This makes Luxembourg an attractive destination for billionaires and businesses. The rich may not live in Luxembourg, but their money certainly is. Luxembourg has more than $4 trillion in assets under management.
Luxembourg has also become home to many major companies, including the European headquarters of the world’s largest online retailer Amazon and the headquarters of confectionery company Ferrero. The country has always been active in supporting startups and businesses. The government and various organizations work to ensure that entrepreneurs receive the support they need to develop their startups and expand globally.
Summary: IMF, Visualcapitalist
Source: https://giadinh.suckhoedoisong.vn/khong-phai-my-hay-trung-quoc-nguoi-dan-o-quoc-gia-be-hat-tieu-nay-moi-la-nhung-nguoi-giau-nhat-the-gioi-thu-nhap-binh-quan-hon-36-ty-dong-nam-172241227071411447.htm
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