oleh admin | Mar 24, 2025 | economic policy, economics, politics, politics and government, politics and law
New Delhi [India], March 24 (ANI):
Lok Sabha
On Monday, discussions resumed regarding the Finance Bill, 2025, during which opposition members accused the government of offering “piecemeal fixes” and having an “incomplete Goods and Services Tax (GST)” system.
BJP
Members praising the government’s economic achievements, stating that the nation’s GDP has increased over two-fold within the past decade.
Initiating the discussion,
Congress
MP
Shashi Tharoor
indicated that the government’s handling of economic matters is fraught with long-standing structural issues.
He criticized the Finance Minister casually.
Nirmala Sitharaman
“. Examining this year’s Finance Bill… I believe she has adjusted her stance somewhat. Now, she is informing taxpayers, ‘Since I couldn’t fix the roof, consider this an umbrella for protection.’ ThisFinanceBill exemplifies piecemeal approaches during a period when the country requires clear vision, unwavering resolve, and strong leadership. The administration’s handling ofeconomicmanagementis grappling with deeply entrenchedstructuralchallenges. Growth forecasts have been reduced, double-digit expansion seems out of reach, and aspirations for sustainingahealthygrowthrateare diminishing,” he stated.
“Increased participation in agriculture among our populace is at an all-time high, whereas manufacturing has decreased to about 15 percent of the GDP. Individuals earning five or six times the average income are also finding it challenging to sustain their lifestyle. Thus, achieving ‘Developed India’ by 2047 is a commendable aim over the next 25 years; however, how will this finance bill help us reach that goal?” Tharoor questioned.
He stated that it has taken the government many years to understand that merely two percent of Indians, those who diligently pay their taxes, have been bearing the weight of this nation on their shoulders.
Salaried individuals from the middle class are currently shouldering a greater burden compared to corporations, as their contributions increased significantly without corresponding actions being taken. This fiscal year has seen an uptick in corporate taxes by approximately eight percent; however, individual and non-corporate taxes have surged by twenty-one percent. Finally, after this extended period, the administration has decided to offer certain tax relief measures for these salaried members of the middle class. Essentially, it is ordinary citizens who bear much of the governmental funding load—through various indirect levies like the Goods and Services Tax (GST). Our taxation framework not only features extraordinarily high rates but also holds the unenviable title of having one of the most intricate systems globally. It’s worth noting that despite seventy-seven nations implementing GST, many apply just one or two rate brackets.
BJP
MP
Nishikant Dubey
mentioned that the Union Budget advantages the average citizen.
“Led by the Prime Minister, the nation’s economy has grown over twofold in the past decade, and the
Congress
Has no link to the country’s economic situation. The budget that aids ordinary citizens and workers has only been introduced during the Modi administration,” Dubey stated.
The tax-to-GDP ratio has reached an all-time peak.
Congress
, which exonerated those implicated in the corruption related to the Bofors scandal, is now calling for a tax accounting.
Congress
“which levied taxes as high as 94 percent on the citizens of this nation, has never benefited the average person,” he claimed.
“The Modi government has reduced taxes on imported generic medicines and lowered import duties on machines used in fish farming and handloom industries,” he added.
Trinamool
Congress
MP
Mahua Moitra
charged the government with incompetence.
Albert Einstein once remarked that the most challenging aspect of life is comprehending income tax. Likewise, we struggle to grasp how this administration’s tax policies continue to exacerbate the significant gap between two versions of India. There is one version for the affluent and well-connected, akin to Kuber’s realm, and an entirely different reality for ordinary citizens—a situation they attribute to poor economic management under this government—much like Vishwakarma’s experience among the common people,” stated Moitra.
She noted that as per data from the Finance Ministry, around eight crore individuals submit tax returns annually, with merely 56 lakh earning above 15 lakhs each year.
In December 2024, responding to a parliamentary query, the Finance Ministry stated that there are 8 crores of taxpayers within this nation. However, among them, merely 56 lakhs earn over 15 lakhs annually. This group of 56 lakhs drives India’s entrepreneurship and service sectors; they alone contribute significantly through direct income tax payments. Under the revised system, anyone earning up to 12.5 lakhs yearly will not owe any tax. It must be noted that taxation remains feasible for just these 56 lakhs from an overall populace of 140 crores. Despite this, our country maintains a substantial Income Tax Department endowed with unusually expansive investigative capabilities akin to policing powers along with unrestricted discretionary authority, all supposedly justified as part of their enforcement role,” he remarked.
TMC
MP said.
“At least 5.6 million individuals benefit from a tiered taxation system; however, the remaining population of India, referred to as Vishwakarma India, does not receive such benefits. For these 1.39 billion inhabitants within Vishwakarma’s India, Goods and Services Tax (GST) acts as an equalizer yet in a highly regressive manner. During fiscal year 2023-24, the Indian government gathered approximately ₹20 trillion through GST, amounting to roughly ₹15,000 per individual. Consequently, whether one is a billionaire or earns wages on a daily basis, they all incur GST when purchasing necessities like food, transportation, and basic goods. No measures have been implemented to lessen this financial strain. Moreover, discussions around decreasing duties on essentials remain absent along with plans aimed at ensuring equitable wealth allocation,” she concluded.
The discussion will carry on into tomorrow. (ANI)
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oleh admin | Mar 24, 2025 | budgets, economic policy, economics, money, news
The clear takeaway from the Treasury regarding Wednesday’s economic announcement is that it will not be considered a budget.
Inside Number 11, you won’t find a red box; instead, there will merely be a slim policy booklet accompanied by a lightweight set of metrics, ensuring no additional tax hikes.
What exactly is the purpose of this Spring Statement?
Primarily, this is a spring forecast provided by the government’s official prognosticators at the Office for Budget Responsibility (OBR). During this forecasting exercise, they have been compelled to factor in an unexpectedly sluggish economy along with increased expenses associated with government debt.
The OBR forecast has eliminated any flexibility regarding the “non-negotiable” guidelines Chancellor Rachel Reeves established for future governmental debt. To maintain the desired figures, she has implemented several additional modifications.
Basically, low economic growth coupled with increased borrowing expenses has significantly thrown the budget projections out of whack.
We can expect the chancellor to frequently emphasize that “the world has transformed.”
In truth, this shift in direction probably would have been necessary even prior to President Trump reshaping international diplomacy and commerce.
On Wednesday, we will discover if the chancellor can still dismiss the possibility of needing to increase taxes, despite this “altered landscape”.
If there is no reversal of spending cuts, then where does the funding originate?
Although no major tax changes are anticipated, the chancellor could still keep the possibility open for the fall Budget.
Several economists anticipate tax increases in the fall, particularly to cover escalating defense expenditures. Discussions about engaging the public regarding this issue are also underway.
During her initial budget speech, the Chancellor dismissed, for instance, prolonging the Conservative freeze on income tax allowances for an additional two years. People might gain a clearer understanding of whether this will become an option again when the Spring Statement rolls around this year.
The £5bn reduction in welfare expenditure
The largest individual reduction in welfare benefits for ten years has already been declared. This is expected to yield one of the most significant savings.
On Wednesday, details regarding the average amount of money being lost through cuts to Personal Independence Payments (PIPs) and Universal Credit—and whether these affect present or upcoming beneficiaries—will be disclosed. It is expected that hundreds of thousands of individuals stand to lose significant sums in health-related financial support.
A reduction of £2.2 billion in civil service administrative expenses has been announced.
, covering staffing up until 2029-30. A reduction of 15% represents a substantial portion of the funds centrally allocated for salaries and consultancy services.
Nevertheless, the chancellor proposed eliminating around 10,000 positions, which represents just a reduction within a staff complement exceeding half a million — particularly since they experience an annual departure rate of between 30,000 to 40,000 employees.
The unions argue that achieving this would inevitably damage frontline services. The success of implementing automation and AI hangs in the balance.
An additional slight reduction in the increase of departmental budgets, stricter measures against tax evasion, and shifting funds from aid to defense expenditures could collectively provide the chancellor with an extra several billion pounds of flexibility.
Given the substantial initial allocation to public spending at the Budget, it would be challenging to describe this approach simply as “austerity.”
Allocating the rise in defense expenditure will be a major aspect of the Spring Statement.
Defense expenditure (such as investments in aircraft and armored vehicles) tends to be more focused on acquiring physical assets compared to foreign assistance outlays. Consequently, a larger portion of defense-related costs falls outside the treasury chief’s voluntary constraints aimed at confining routine expenditures strictly within tax revenues.
Growth downgrade
Naturally, considerable attention will be directed towards the significant downward revision of the OBR forecast for the economic outlook in 2025.
The key issue for the chancellor has revolved around whether this situation persisted throughout the entire forecasting horizon, thereby causing long-term damage to both the economy and tax receipts. However, it might not have done so, hence potentially having less effect on the Budget figures.
The Treasury has similarly attempted to have the OBR acknowledge its efforts towards growth-promoting reforms like modifications in land use planning.
Theoretically, increased economic growth could lead to reduced projected borrowing and greater flexibility – a positive outcome overall. However, the OBR might have tightened its criteria following a recent external assessment of its methodologies.
The broader perspective encompasses development and the government’s strategic approach. After eight months in office, investors and businesses remain eager for insights into the administration’s plans regarding infrastructure, industry, and trade.
The emerging worldwide landscape brings additional ambiguity, yet simultaneously opens up substantial opportunities for an economically advanced nation governed by consistent regulations, excelling in pioneering scientific research and robust financial services.
This holds true especially for a country capable of maintaining its trade and investment ties with the United States, Europe, China, and the Persian Gulf region, even during times of tariff turmoil. Within the cabinet, this is referred to as “the world’s most interconnected economy.”
Is anyone paying attention to this? The cost of U.K. government debt has increased once more as financial markets look forward to the announcement of the updated schedule for bond auctions on Wednesday.
In January, UK bond yields increased alongside those in the US, but once this trend halted, they began to rise in tandem with European rates following significant defense expansion funded by heavy borrowing. This situation presents the bleakest scenario for anticipated borrowings.
The Spring Statement could serve as an occasion to present the contrasting viewpoint—that the UK is exceptionally well-positioned to excel in both realms. An impending economic agreement with the US seems likely, and negotiations regarding the Brexit recalibration are advancing as well.
There are some small signs of the economy breaking out of its recent rut, especially in the service sector. Small businesses in retail and hospitality fearing the rises to National Insurance and the National Living Wage are holding out for some sort of alleviation of the pain.
Therefore, Thursday, though certainly not a Budget day, will address several crucial queries regarding the economy.
-
What can we expect from the chancellor’s Spring Statement?
-
Reeves states a 15% reduction in expenses for the Civil Service operations has been confirmed.
-
Rachel Reeves: I won’t engage in ‘taxing and spending.’
oleh admin | Mar 24, 2025 | economic policy, financial markets, macroeconomics policy, monetary policy, news
By Morkporkpor Anku
Accra, March 24, GNA – Dr. Johnson Asiama, Governor of the Bank of Ghana, has suggested implementing strategies to increase transparency regarding the Monetary Policy Committee’s decisions. This could involve releasing details of individual votes or improving the explanatory content within policy announcements.
He mentioned that the committee also had to focus on making the presentation of forecasts easier for both the general public and market participants, ensuring they could more readily grasp the fundamental policy narrative behind them.
At the commencement of the 123rd routine session of the Monetary Policy Committee (MPC) in Accra on Monday, the Governor delivered an address.
He stated that these modifications would enhance reliability and foster greater confidence in the policy structure.
Dr Asiama said the transparency of the MPC decision-making process and the communication of the forward-looking guidance could further be strengthened going forward.
He mentioned that there is an increasing perception in public discussions suggesting the Monetary Policy Committee makes decisions in secrecy, lacking transparent and data-driven rationale.
He praised the outside members of the Committee—Professors Joshua Abor and Ebo Turkson—for their enduring contributions to the group.
He stated that although inflation was declining, it still remained unacceptably high at more than 23 percent, and the advancement had been gradual, especially when measured on a monthly basis.
For example, he stated that the underlying factors driving food price inflation continued to be consistent.
The Governor stated that although the external environment is presently conducive, it is showing signs of growing volatility.
We’ve observed a robust trade surplus along with significant reserves accumulation due to gold exports and inflows from remittances,” he noted further. “However, an intensification of global tariff disputes, increasing geopolitical strains, and diminishing demand from China might alter this scenario rapidly.
He mentioned that these worldwide elements might lead to spill-over impacts on inflation, capital movements, and the steadiness of exchange rates.
Domestically, he mentioned that for the 2024 fiscal year-end results were expansionary, as the deficit surpassed projected goals.
Dr. Asiama stated that there were promising indications of consolidation at the beginning of 2025; however, doubts persisted about whether the present strategies would be sufficient to stabilize expectations and meet the forthcoming IMF program evaluations.
The Governor mentioned that financial circumstances were changing rapidly, noting an increase in liquidity within the system. Commercial banks had expressed reservations regarding the Cash Reserve Ratio framework. It was thus crucial to meticulously evaluate its broader economic impacts, particularly concerning inflation rates, foreign exchange needs, and expansion of credit.
While private sector credit showed recovery in nominal terms, real credit growth stayed moderate; banks continued to be cautious, and concerns persisted over high levels of Non-Performing Loans.
“Meanwhile, the microfinance and rural banking sectors are demonstrating initial indications of stabilization; however, ongoing recapitalization and regulatory reform will be essential to maintain trust,” he further stated.
He recognized that many of today’s issues arose from past mistakes in both monetary and fiscal policies, specifically the loss of effective fiscal strategies during times of economic strain, poor collaboration between monetary and fiscal measures, and procrastination in implementing crucial structural changes.
This led to increased inflation, hindered effectiveness of monetary policies, and a decline in trustworthiness.
He emphasized that the MPC needed to contemplate these matters without aiming to apportion blame, but rather with the objective of fortifying the institutions and preventing the recurrence of previous errors.
“There are also significant underlying problems we cannot afford to ignore, including insufficient investment in farming, ongoing discrepancies in currency values, and the necessity to expand our local financial sectors,” he stated.
These factors fall outside the purview of today’s urgent interest rate decision; however, they will influence the overall monetary policy environment in the longer term.
He mentioned that they were dealing with a combination of threats: persistent inflation, high liquidity, low real interest rates, an unstable fiscal rebound, and increasing external uncertainties.
“We also possess buffer stocks, robust reserves, positive sentiment, and the reliability of our policy framework to steer us forward,” he added.
GNA
CA
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oleh admin | Mar 24, 2025 | budgets, economic policy, economics, government, politics and government
-
The electricity rebate has been prolonged for an additional six months.
The man behind
Anthony Albanese
his bid for a second term
is investing billions in assistance for living costs as part of a frantic effort to secure Labor’s re-election amid volatile economic conditions
Treasurer
Jim Chalmers
The fourth budget is set to be delivered tonight, with
election
set to take place by May 17 with Labor trailing behind in the opinion polls.
As part of Labor’s spending spree, Australians will continue receiving electricity rebates for an additional six months, along with other benefits.
lowering medication expenses, reducing college loans, providing support to steel and aluminum producers, and reconstructing the treasury’s hurricane-damaged home state
Queensland
.
This occurs amid forecasts of future deficits due to declining iron ore prices, which reduce federal government revenues and complicate Australia’s ability to address major disasters.
Donald Trump’s tariffs have added further unpredictability, with U.S.-initiated trade conflicts contributing to a worldwide economic downturn and diminishing China’s appetite for Australian mineral exports.
Westpac calculates that the Labor Party’s declarations made after the conclusion of last year will result in an additional expenditure of $10.7 billion for the Budget over the coming four-year period.
This is what has been confirmed for inclusion in the budget statement today…
Electricity rebates extended
An additional $150 in assistance for electricity bills will be provided, continuing the cost-of-living measure until December 31 at an expense of $1.8 billion.
The $300 rebate from the previous year’s budget was set to expire on June 30, and electricity firms will receive their final quarterly subsidy of $75 on April 1, which they plan to transfer to consumers.
Dr. Chalmers contended that prolonging the electricity rebates through December 2025 aimed at addressing issues related to rising living costs.
“This is practical assistance for families, as we understand that the rising costs are a top concern for most Australians and are prominently addressed in the budget,” he said to the Seven Network.
This provides an additional six months of assistance with energy bills, acknowledging that despite our collective progress in tackling inflation, individuals continue to face financial strain, and this budget aims to address those concerns.
The party had previously promised during the last election to lower average power bills by $275, and extending this initiative might help mitigate a troublesome political concern.
However, Dr Chalmers contended that Labor had upheld their pledge made during the 2022 elections.
“You inquired about $275. However, we deducted $300 last year,” he explained to Sky News.
Extending electricity subsidies for both homes and enterprises is also aimed at managing overall inflation rates, considering these measures artificially lowered the consumer price index in the previous year.
Last month, the Reserve Bank forecasted that the CPI would rise to 3.7 percent by the end of 2025, assuming the rebates were not continued past July.
That ugly scenario would see inflation soaring back above the RBA’s 2 to 3 per cent target, up from the present level of 2.4 per cent.
The treasury predicts that extending the electricity subsidies for an additional six months will reduceheadline inflation by 0.5 percentage points by the end of 2025.
But
Westpac
Sian Fenner, who leads business and industrial economics at the bank, cautioned borrowers against anticipating further interest rate reductions from the Reserve Bank due to the prolonged electricity rebates.
“We anticipate that the RBA will once more ‘look past’ these impacts when evaluating policy,” she stated.
The Australian Energy Regulator suggested limiting price hikes to between 2.5 percent and 8.9 percent, indicating that ongoing electricity cost increments could persist as an issue for the government unless they prolonged the financial relief measures.
Cheaper medicines
Australians will have their medication expenses limited to $25 each script, reducing from the current $31.60 price point, with this change costing around $680 million.
Script fees for concession cardholders, such as pensioners, will be waived after they have spent over $277 annually on medications, reducing the threshold from $7.70 previously.
The cap of $7.70 for co-payments was already set to remain unchanged until June 2029.
The government is enhancing the Pharmaceutical Benefits Scheme, despite objections from U.S. pharmaceutical companies who claim that the subsidies could cut into their prospective profits in Australia.
During this election year, politicians from all sides remain dedicated to supporting the PBS. Despite the impending introduction of new tariffs on Australian pharmaceutical exports to the U.S., scheduled for implementation by the Trump administration starting in April, their commitment remains steadfast.
The Labor party has already pledged an additional $8.5 billion for Medicare funding over the next four years.
The Labor party is allocating $644 million to establish additional
Fifty Medicare Urgent Care Centers, expanding clinic locations to all states and territories.
Cyclone Alfred
The destruction caused by Cyclone Alfred in southeast Queensland and northern New South Wales is expected to impact the budget by $1.2 billion.
Doctor Chalmers, hailing from Queensland’s Logan area which was struck by floods, revealed this number just a week prior to the Budget announcement.
Following the downgrade of the tropical low, significant destruction occurred in Brisbane and the Gold Coast, with floodwaters also affecting regions of New South Wales all the way down to Graftan.
“Initially, we are still evaluating the extent of the damages; however, I am not willing to wait another two, three, four weeks, or even a few months before incorporating it into the budget,” Dr. Chalmers stated to the Queensland Media Club.
I need to input a figure into the budget next week. Therefore, we should make a reasonable allocation for community recovery and reconstruction.
Student debt
In an effort to fend off competition from the Greens in urban areas, Labor declared a 20 percent reduction in student debt obligations last year.
This single-time initiative will assist 3 million Australians by reducing their Higher Education Loan Program and Higher Education Contribution Scheme debts by $16 billion.
In addition to reducing student debt by $3 billion through revised indexing agreements.
Debt levels will always remain below the increase in wages, with adjustments tied to the lower of either the wage price index or the consumer price index.
Steel and aluminium subsidies
The 25 percent tariffs imposed by the Trump administration on Australian steel and aluminum producers went into effect on March 12.
A week later, the Albanese government retaliated with a $750 million initiative aimed at supporting steel and aluminum manufacturers, which is a component of Labor’s Future Made In Australia strategy.
The environmental subsidies came from the $1.7 billion Future Made In Australia Innovation Fund, which was unveiled in last year’s 2024-25 Budget.
In addition to a $2.4 billion bailout for the troubled Whyalla steelworks in South Australia, which is currently under administration, the state government is providing support.
Financial state of play
Dr. Chalmers has achieved two successive budget surpluses, marking the first time for a federal government since 2007 prior to the Global Financial Crisis.
However, deficits are anticipated starting from 2025-26, as iron ore prices are predicted to drop to around $US60 per tonne by mid-2025, compared to the figures exceeding $US100 per tonne observed in 2024.
Lower iron ore prices lead to decreased federal government corporate tax revenues, as well as reduced royalties for the Western Australian government.
Ms Fenner stated, ‘We think that the potential for considerable unexpected increases in future revenue is less pronounced compared to recent years.’
The gross government debt will also surpass $1 trillion for the first time in the upcoming fiscal year, accounting for 36 percent of the gross domestic product.
This might complicate things for upcoming Australian administrations when they have to deal with catastrophic occurrences.
‘Ms Fenner stated that as debts increase, there will be reduced financial room to adopt counter-cyclical strategies aimed at mitigating the impact of potential future crises, similar to what was done during the Global Financial Crisis and the pandemic.’
This occurs as geopolitical uncertainties rise, trade tensions escalate, extreme weather events become more common, and technological advancements continue, potentially leading to an increase in disruptions.
Read more
oleh admin | Mei 29, 2024 | economic policy, economics, money, wealth, world
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Many of the richest nations globally boast tiny population sizes, enabling their significant economic outputs to convert into elevated individual prosperity levels.
-
Luxembourg tops the list with a GDP per capita of $143,743, owing to its strong financial sector and advantageous banking regulations.
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Nations like Qatar, the UAE, and Switzerland utilize specialized economies focused on natural resources, finance, or luxury items to attain a high gross domestic product per capita.
Elijah Ntongai, who works as a journalist for LIFEHACK.co.ke, boasts over three years of experience in researching finance, business, and technology. He offers valuable perspectives on both Kenyan and international developments.
The Global Finance magazine has published a report that ranks every country worldwide according to their GDP per capita.
Gross Domestic Product (GDP) per capita (a Latin term meaning ‘per individual’) serves as an economic indicator that calculates a nation’s total GDP divided by its number of inhabitants. It reflects the mean economic production attributed to each citizen.
The most recent report from Global Finance indicates that many of the globe’s richest nations are surprisingly small, leveraging advanced financial systems, valuable natural assets, and advantageous taxation policies.
One key factor shared by many of the wealthiest countries is their limited population sizes, enabling their significant economic production to convert into elevated individual prosperity.
Many of these nations boast specialized economies, developed financial sectors, or substantial natural resources, enabling them to become major economic forces regardless of their dimensions.
The Top 10 Richest Countries in 2024
1. Luxembourg
Luxembourg, a European microstate with a population of around 670,000, tops the list with an average GDP per Capita of $143,743 (about KSh 19,066,977).
Renowned for its robust financial sector and high standard of living, Luxembourg leverages its strategic location and banking secrecy laws to attract global wealth.
2. Macao SAR
Macao has rebounded strongly post-pandemic, recording a GDP per Capita of $134,141 (about KSh 17,793,342) in 2024.
Macao SAR has a small population of around 700,000 and a booming g*mbling and c*sino industry.
3. Ireland
Ireland has become a magnet for international businesses due to its attractive low corporate tax rates, with a GDP per capita of $133,895 (approximately KSh 17,751,587).
Global Finance pointed out, however, that this ranking primarily indicates the profitability of major companies rather than the typical citizen’s income.
4. Singapore
The transformation of Singapore from a developing country into a leading global financial hub is impressive, boasting a GDP per capita of $133,737 (approximately KSh 17,735,397).
This micro-nation keeps drawing wealthy people thanks to its beneficial taxation rules and pro-business atmosphere.
5. Qatar
Qatar’s extensive deposits of oil and natural gas play a crucial role in its prosperity, with a GDP per capita of $112,283 (approximately KSh 14,883,507).
Even with a limited number of people, the country sustains an elevated quality of life and strong economic stamina.
6. United Arab Emirates
The UAE, notably Dubai and Abu Dhabi, uses its petroleum riches to expand into sectors like tourism, finance, and commerce.
The country boasts a diverse populace and an economy that is quickly changing, with a gross domestic product per person of $96,846 (approximately KSh 12,853,215).
7. Switzerland
The prosperity of Switzerland stems from its robust banking industry, advanced technology sectors, and the global trade of premium products.
The nation has a significant average wealth per adult, featuring a GDP per capita of $91,932 (approximately KSh 12,197,590), along with a robust economy even amid recent disruptions in the financial sector.
8. San Marino
This tiny European country with a population of 34,000 enjoys advantages like minimal taxation and a robust tourist sector.
San Marino’s economy has demonstrated remarkable stability and expansion during difficult periods, with a GDP per capita of $86,989 (approximately KSh 11,539,617).
9. United States
The United States continues to be a dominant force in the global economy, boasting a sizable and varied economic landscape, with a GDP per capita of $85,373 (approximately KSh 11,313,977).
Recently implemented strategies have enhanced its economic performance, keeping it within the top 10 rankings.
10. Norway
Norway’s prosperity mainly stems from its significant contributions from the oil and gas industry, which result in a GDP per capita of $82,832 (approximately KSh 10,982,240).
Additionally, the nation boasts a significant sovereign wealth fund, which acts as a financial safeguard and aids in sustaining a high quality of life for its residents.
Challenges and inequalities
The Global Finance Magazine pointed out that even with their riches, these countries still face economic difficulties and disparities.
For instance, in nations like the U.S. and Switzerland, the gap between the rich and poor remains a critical issue.
Richest countries in Africa
In other related news,
LIFEHACK.co.ke
listed the top 20 wealthiest nations in Africa.
Countries were evaluated using GDP-PPP (Purchasing Power Parity) per capita, which considers differences in cost of living and inflation, providing a more accurate picture of economic well-being
Nations with sophisticated financial sectors, lucrative natural resources, favourable tax regimes, and small populations typically achieve higher GDP per capita.
Proofreading by Otukho Jackson, a multimedia journalist and copy editor at LIFEHACK.co.ke
