This brief article will list the most advancedcountries and their development levels as we enter 2024. To get more insights into the world’s wealthiest countries, read 35 Most Developed Countries in the World Heading into 2024.
10. Luxembourg
HDI Ranking: 17
GDP Per Capita: $126,426
Composite Score: 10
Luxembourg has the second-highest GDP per capita globally, trailing only Liechtenstein. In 2023, its Real GDP growth is projected to decline by 0.6% before rebounding to 1.4% in 2024 and 2.0% in 2025, according to the European Union. This fluctuation is mainly due to weak investment linked to tighter financing conditions and lower net exports.
9. Sweden
HDI Ranking: 7
GDP Per Capita: $55,873
Composite Score: 9
Sweden’s journey to becoming a highly developed country is characterized by stable economic growth, particularly since the 1970s. However, it faced challenges like low growth and high inflation in the late 1980s and early 1990s, leading to a financial crisis and necessitating economic reforms. These reforms, introduced in the mid-1990s, included setting a public spending ceiling and establishing a government budget surplus goal. These measures have been crucial in maintaining fiscal stability and controlling debt with a long-term focus. Sweden’s economic success is also attributed to its trade openness and business-friendly environment, consistently yielding a trade surplus.
8. Singapore
HDI Ranking: 12
GDP Per Capita: $82,807
Composite Score: 8
Singapore has established itself as a significant player in global commerce, leveraging its open-market economy and pivotal role in international trade. It ranks as one of the least corrupt countries in Asia and fifth globally in the 2022 Corruption Perception Index by Transparency International. The country’s economic structure is diversified, with significant foreign investments in manufacturing and services. In 2021, US investments in Singapore totaled $294 billion, reflecting strong international economic ties.
7. Liechtenstein
HDI Ranking: 16
GDP Per Capita: $184,083
Composite Score: 7
Over the past decades, the Principality of Liechtenstein, located in central Europe, has transformed into a dynamic, diverse business hub. This evolution is anchored in its centuries-old history. Since 1972, its economic output has almost quintupled, with private household income per capita leading all EU/EFTA countries. Stability and security are key to this development, supported by a stable political environment and strategic economic policies. Notably, Liechtenstein maintains a debt-free status and benefits from its affiliations with Switzerland and the European Economic Area (EEA), enhancing its economic stability.
6. Denmark
HDI Ranking: 6
GDP Per Capita: $66,983
Composite Score: 6
Denmark’s status as a developed country is marked by a commitment to a robust economic structure and environmental sustainability. The country leads in green energy innovation, with ambitious plans to enhance its wind and solar power capabilities by 2030. Economically, Denmark’s monetary policy, influenced by its euro peg, has supported credit market growth. Coupled with a diversified trade portfolio, this contributes to the expanding economy. However, this growth necessitates tighter regulatory policies.
5. Australia
HDI Ranking: 5
GDP Per Capita: $64,491
Composite Score: 5
In 2024, Australia’s economic growth is projected (by IMF) to be around 1.25%, influenced by tighter macroeconomic policies and financial conditions. Despite this slowdown, unemployment remains low, and housing prices have begun to recover after a correction in 2022. By the second quarter of 2023, the country’s headline inflation had decreased to 5.0%, a significant drop from the record high of 7.8% in the fourth quarter of 2022.
4. Ireland
HDI Ranking: 8
GDP Per Capita: $104,038
Composite Score: 4
Ireland’s real GDP growth for 2023 was revised upwards to 4.9%, with expectations of continued expansion in 2024, reaching 4.1%, according to the European Commission. The unemployment rate remained low at 4.3% in December 2022, reflecting a strong labor market. The country’s year-on-year inflation rate is expected to stabilize, decreasing from 4.4% in 2023 to 2.1% in 2024.
3. Iceland
HDI Ranking: 3
GDP Per Capita: $72,903
Composite Score: 3
Following a decline in 2020, Iceland’s economy swiftly recovered, with GDP levels surpassing pre-pandemic figures. In 2022, the economy expanded by 6.4%, driven by increased domestic demand and growth in service exports. Growth in 2023 is anticipated to exceed 4.8%, supported by a strong tourism sector and robust private consumption.
2. Switzerland
HDI Ranking: 1
GDP Per Capita: $92,101
Composite Score: 2
Despite global uncertainties, the Swiss economy, known for its resilience, continues to face challenges. After a 2.1% GDP growth in 2022, it is expected to slow to 0.8% in 2023. The labor market remains robust, with unemployment rates reaching a 20-year low of 1.9% in early 2023. However, inflation has become a concern, climbing to 2.9% in March 2023, exceeding the target range set by the Swiss National Bank.
1. Norway
HDI Ranking: 2
GDP Per Capita: $106,148
Composite Score: 1
Norway, currently the most developed and prosperous country globally, experienced significant growth in 2022, partly due to high petroleum and natural gas prices. The economy is expected to continue growing, albeit at a slower rate, with a focus on balancing growth and sustainability. The labor market remains strong, with employment growth and low unemployment rates contributing to economic stability.’Stay informed and ahead of the financial curve by subscribing to the Insider Monkey newsletter. Enter your email address below to access exclusive insights and expert analysis around investment and finance. You can also read 23 Richest Countries in Asia by GDP Per Capita in 2023 and 23 Richest Countries in Africa by GDP Per Capita in 2023.
