By: Isuru Parakrama
November 06, World (LNW): Seven of the ten nations with the highest income per person are located in Europe, many of which are small states known for robust social systems and highly developed economies, according to the International Monetary Fund’s World Economic Outlook (October 2025 update).
When measuring national prosperity, economists often refer to GDP per capita — the total economic output divided by the population. Using this metric, the United States places eighth worldwide, with an estimated average of around US$89,600 per person.
At the top of the list is Liechtenstein, boasting an extraordinary GDP per capita of about US$231,700. A notable factor behind this figure is that a majority of its workforce commutes daily from abroad, increasing productivity figures without expanding the resident population.
Luxembourg follows in second place with roughly US$146,800, benefiting from a similar dynamic of cross-border employment.
Ireland ranks third, recording about US$129,100 per person. The presence of major multinational technology firms headquartered there, drawn by favourable tax conditions, has significantly contributed to this figure.
Rounding out the upper tier are Switzerland, Iceland, and Singapore — each with notably high average incomes not primarily dependent on tax incentives or commuter inflows. Singapore’s rise is particularly striking: since 1980, its per-person income has increased almost twentyfold, reflecting the city-state’s rapid evolution into a global financial and trading powerhouse.
