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Visualizing the Wealth of Nations

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The Wealth of Nations (2018-2028F)

Visualizing the Wealth of Nations

Just as there exists a longstanding inequality in the distribution of household wealth, so exists a considerable differential in the amount of wealth held by countries on the international stage.

Simply put, some nations are “haves”, while many others are “have-nots”.

“Wherever there is great property, there is great inequality.”

– Adam Smith, The Wealth of Nations

Ranking Riches

We previously showed you how the ranking of the richest countries in the world has changed over the course of the last 10 years (2008-2018).

Today’s chart keys on a slightly different question.

What are the wealthiest nations today, both in absolute and per capita terms, and how is this list projected to change over the next decade? Let’s see how the wealth of nations stack up.

Private Wealth: Now and in the Future

Using data from the Global Wealth Migration Review, here are the 10 wealthiest nations both now and as forecasted in 2028.

RankCountryWealth (2018)Wealth (2028F)Approx. Growth
#1๐Ÿ‡บ๐Ÿ‡ธ United States$60.7 trillion$72.8 trillion20%
#2๐Ÿ‡จ๐Ÿ‡ณ China$23.6 trillion$51.8 trillion120%
#3๐Ÿ‡ฏ๐Ÿ‡ต Japan$19.1 trillion$24.9 trillion30%
#4๐Ÿ‡ฎ๐Ÿ‡ณ India$8.1 trillion$22.8 trillion180%
#5๐Ÿ‡ฆ๐Ÿ‡บ Australia$6.0 trillion$10.8 trillion80%
#6๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom$9.1 trillion$10.0 trillion10%
#7๐Ÿ‡ฉ๐Ÿ‡ช Germany$8.8 trillion$9.7 trillion10%
#8๐Ÿ‡จ๐Ÿ‡ฆ Canada$6.0 trillion$7.8 trillion30%
#9๐Ÿ‡ซ๐Ÿ‡ท France$5.9 trillion$6.4 trillion10%
#10๐Ÿ‡ฎ๐Ÿ‡น Italy$3.8 trillion$4.2 trillion10%

It’s worth noting that these figures are meant to represent wealth, which is defined as the total amount of private wealth held by individuals in each country. It includes assets like property, cash, equities, and business interests, minus any liabilities.

China has been the best performing wealth market in the last decade, and these projections show the country as continuing on that track. In fact, both China and India are expected to see triple-digit growth in private wealth between now and 2028.

As far as developed countries go, it’s not surprising that growth rates are much more modest. In Europe, countries like Great Britain, Germany, France, and Italy are only expected to add 10% to private wealth in 10 years, while Canada (30%) and the U.S. (20%) do marginally better.

One notable exception here is Australia, which is expected to add 80% to private wealth over the timeframe – and it will leapfrog both Germany and the U.K. in the rankings in the process.

Wealth per Capita

Here’s a look at the wealth of nations in a different way, this time with numbers adjusted on a per capita basis.

RankCountryEst. PopulationWealth per capita (2018)
#1๐Ÿ‡ฒ๐Ÿ‡จ Monaco38,695$2,114,000
#2๐Ÿ‡ฑ๐Ÿ‡ฎ Liechtenstein37,810$786,000
#3๐Ÿ‡จ๐Ÿ‡ญ Switzerland8,420,000$315,000
#4๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg590,667$300,000
#5๐Ÿ‡ฆ๐Ÿ‡บ Australia24,600,000$244,000
#6๐Ÿ‡ณ๐Ÿ‡ด Norway5,258,000$198,000
#7๐Ÿ‡บ๐Ÿ‡ธ United States327,200,000$186,000
#8๐Ÿ‡ธ๐Ÿ‡ฌ Singapore5,612,000$177,000
#9๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong7,392,000$169,000
#10๐Ÿ‡จ๐Ÿ‡ฆ Canada36,540,000$163,000

When using per capita numbers, it’s absolutely no contest.

Monaco, the city-state on the French Riviera, is a money magnet with $2.1 million of private wealth per citizen. This means the average Monacan is at least 10 times richer than the average North American or European.

Liechtenstein, a microstate that sits in the Alps between Switzerland and Austria, also has a high average wealth of $786,000 per person. Like Monaco, its population is well under 50,000 people.

Finally, it’s worth mentioning that three countries on the per capita list also made the overall list. Put another way, the countries of Australia, Canada, and the United States can all claim to be among the wealthiest of nations in both absolute and per capita terms.

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This Infographic Breaks Down Careers In Finance, From Hedge Funds to M&A

Corporate finance oversees trillions of dollars and makes modern markets and economies possible, but who are the main players?

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Careers In Corporate Finance, From Hedge Funds to M&A

Corporate finance is a key pillar on which modern markets and economies have been built. And this complex ecosystem consists of a number of important sectors, which can lead to lucrative career avenues.

From lending to investment banking, and private equity to hedge funds, the graphic above by Wall Street Prep breaks down the key finance careers and paths that people can take.

Let’s take a further look at the unique pieces of this finance ecosystem.

The Lending Business

Lending groups provide much needed capital to corporations, often in the form of term loans or revolvers. These can be part of short and long-term operations or for events less anticipated like the COVID-19 pandemic, which resulted in companies shoring up $222 billion in revolving lines of credit within the first month.

Investment Banking

Next, is investment banking, which can split into three main areas:

  1. Mergers and Acquisitions (M&A): There’s a lot of preparation and paperwork involved whenever corporations merge or make acquisitions. For that reason, this is a crucial service that investment banks provide, and its importance is reflected in the enormous fees recognized. The top five U.S. investment banks collect $10.2 billion in M&A advisory fees, representing 40% of the $25 billion in global M&A fees per year.
  2. Loan Syndications: Some $16 billion in loan syndication fees are collected annually by investment banks. Loan syndications are when multiple lenders fund one borrower, which can occur when the loan amount is too large or risky for one party to take on. The loan syndication agent is the financial institution involved that acts as the third party to oversee the transaction.
  3. Capital Markets: Capital markets are financial markets that bring buyers and sellers together to engage in transactions on assets. They split into debt capital markets (DCM) like bonds or fixed income securities and equity capital markets (ECM) (i.e. stocks). Some $41 billion is collected globally for the services associated with structuring and distributing stock and bond offerings.

The top investment banks generally all come from the U.S. and Western Europe, and includes the likes of Goldman Sachs and Credit Suisse.

Sell Side vs Buy Side

Thousands of analysts in corporate finance represent both the buy and sell-sides of the business, but what are the differences between them?

One important difference is in the groups they represent. Buy-side analysts usually work for institutions that buy securities directly, like hedge funds, while sell-side analysts represent institutions that make their money by selling or issuing securities, like investment banks.

According to Wall Street Prep, hereโ€™s how the assets of buy-side institutions compare:

Buy side institutionTotal assets
Mutual Funds, ETFs$21 trillion
Private equity$5 trillion
Hedge funds$3 trillion
Venture capital$0.5 trillion

Also, buy-side jobs appear to be more sought after across financial career forums.

Breaking Down The Buy Side

Mutual funds, ETFs, and hedge funds all generally invest in public markets.

But between them, there are still some differentiating factors. For starters, mutual funds are the largest entity, and have been around since 1924. Hedge funds didnโ€™t come to life until around 1950 and for ETFs, this stretched to the 1990s.

Furthermore, hedge funds are strict in the clients they take on, with a preference for high net worth investors, and they often engage in sophisticated investment strategies like short selling. In contrast, ETFs, and mutual funds are widely available to the public and the vast bulk of them only deploy long strategies, which are those that expect the asset to rise in value.

Private equity (PE) and venture capital (VC) are groups that invest in private companies. Venture capital is technically a form of PE but tends to invest in new startup companies while private equity goes for more stable and mature companies with predictable cash flow patterns.

Who funds the buy side? The source of capital roughly breaks down as follows:

Source of capitalCapital amount
Individuals$112 trillion
Banks$51 trillion
Pension funds$34 trillion
Insurance Companies$24 trillion
Endowments$1.4 trillion

Endowment funds are foundations that invest the assets of nonprofit institutions like hospitals or universities. The assets are typically accumulated through donations, and withdrawals are made frequently to fund various parts of operations, including critical ones like research.

The largest university endowment belongs to Harvard with some $74 billion in assets under management. However, the largest endowment fund overall belongs to Ensign Peak Advisors. They represent The Church of Jesus Christ of Latter-day Saints (LDS), with some $124 billion in assets.

Primary Market vs Secondary Market

One of the primary motivations for a company to enter the public markets is to raise capital, where a slice of the company’s ownership is sold via an allotment of shares to new investors. The actual capital itself is raised in the primary market, which represents the first and initial transaction.

The secondary market represents transactions after the first. These are considered stocks that are already issued, and shares now fluctuate based on market forces.

Tying It All Together

As the infographic above shows, corporate finance branches out far and wide, handles trillions of dollars, and plays a key part in making modern markets and economies possible.

For those exploring a career in finance, the possibilities and avenues one can take are practically endless.

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Visualizing the $94 Trillion World Economy in One Chart

Which countries and regions contribute the most to the world economy? In this infographic, we break down all $94 trillion of global GDP by country.

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World Economy

The $94 Trillion World Economy in One Chart

View the expanded version of this infographic.

Just four countriesโ€”the U.S., China, Japan, and Germanyโ€”make up over half of the world’s economic output by gross domestic product (GDP) in nominal terms. In fact, the GDP of the U.S. alone is greater than the combined GDP of 170 countries.

How do the different economies of the world compare? In this visualization we look at GDP by country in 2021, using data and estimates from the International Monetary Fund (IMF).

An Overview of GDP

GDP serves as a broad indicator for a countryโ€™s economic output. It measures the total market value of final goods and services produced in a country in a specific timeframe, such as a quarter or year. In addition, GDP also takes into consideration the output of services provided by the government, such as money spent on defense, healthcare, or education.

Generally speaking, when GDP is increasing in a country, it is a sign of greater economic activity that benefits workers and businesses (while the reverse is true for a decline).

The World Economy: Top 50 Countries

Who are the biggest contributors to the global economy? Here is the ranking of the 50 largest countries by GDP in 2021:

RankCountryGDP ($T)% of Global GDP
1๐Ÿ‡บ๐Ÿ‡ธ U.S.$22.924.4%
2๐Ÿ‡จ๐Ÿ‡ณ China$16.917.9%
3๐Ÿ‡ฏ๐Ÿ‡ต Japan$5.15.4%
4๐Ÿ‡ฉ๐Ÿ‡ช Germany$4.24.5%
5๐Ÿ‡ฌ๐Ÿ‡ง UK$3.13.3%
6๐Ÿ‡ฎ๐Ÿ‡ณ India$2.93.1%
7๐Ÿ‡ซ๐Ÿ‡ท France$2.93.1%
8๐Ÿ‡ฎ๐Ÿ‡น Italy$2.12.3%
9๐Ÿ‡จ๐Ÿ‡ฆ Canada$2.02.1%
10๐Ÿ‡ฐ๐Ÿ‡ท Korea$1.81.9%
11๐Ÿ‡ท๐Ÿ‡บ Russia$1.61.7%
12๐Ÿ‡ง๐Ÿ‡ท Brazil$1.61.7%
13๐Ÿ‡ฆ๐Ÿ‡บ Australia$1.61.7%
14๐Ÿ‡ช๐Ÿ‡ธ Spain$1.41.5%
15๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico$1.31.4%
16๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia$1.21.2%
17๐Ÿ‡ฎ๐Ÿ‡ท Iran$1.11.1%
18๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$1.01.1%
19๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia$0.80.9%
20๐Ÿ‡จ๐Ÿ‡ญ Switzerland$0.80.9%
21๐Ÿ‡น๐Ÿ‡ท Turkey$0.80.8%
22๐Ÿ‡น๐Ÿ‡ผ Taiwan $0.80.8%
23๐Ÿ‡ต๐Ÿ‡ฑ Poland$0.70.7%
24๐Ÿ‡ธ๐Ÿ‡ช Sweden$0.60.7%
25๐Ÿ‡ง๐Ÿ‡ช Belgium$0.60.6%
26๐Ÿ‡น๐Ÿ‡ญ Thailand$0.50.6%
27๐Ÿ‡ฎ๐Ÿ‡ช Ireland$0.50.5%
28๐Ÿ‡ฆ๐Ÿ‡น Austria$0.50.5%
29๐Ÿ‡ณ๐Ÿ‡ฌ Nigeria$0.50.5%
30๐Ÿ‡ฎ๐Ÿ‡ฑ Israel$0.50.5%
31๐Ÿ‡ฆ๐Ÿ‡ท Argentina$0.50.5%
32๐Ÿ‡ณ๐Ÿ‡ด Norway$0.40.5%
33๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa$0.40.4%
34๐Ÿ‡ฆ๐Ÿ‡ช UAE$0.40.4%
35๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark$0.40.4%
36๐Ÿ‡ช๐Ÿ‡ฌ Egypt$0.40.4%
37๐Ÿ‡ต๐Ÿ‡ญ Philippines$0.40.4%
38๐Ÿ‡ธ๐Ÿ‡ฌ Singapore$0.40.4%
39๐Ÿ‡ฒ๐Ÿ‡พ Malaysia$0.40.4%
40๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong SAR$0.40.4%
41๐Ÿ‡ป๐Ÿ‡ณ Vietnam$0.40.4%
42๐Ÿ‡ง๐Ÿ‡ฉ Bangladesh$0.40.4%
43๐Ÿ‡จ๐Ÿ‡ฑ Chile$0.30.4%
44๐Ÿ‡จ๐Ÿ‡ด Colombia$0.30.3%
45๐Ÿ‡ซ๐Ÿ‡ฎ Finland$0.30.3%
46๐Ÿ‡ท๐Ÿ‡ด Romania$0.30.3%
47๐Ÿ‡จ๐Ÿ‡ฟ Czech Republic$0.30.3%
48๐Ÿ‡ต๐Ÿ‡น Portugal$0.30.3%
49๐Ÿ‡ต๐Ÿ‡ฐ Pakistan$0.3*0.3%
50๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand$0.20.3%

*2020 GDP (latest available) used where IMF estimates for 2021 were unavailable.

At $22.9 trillion, the U.S. GDP accounts for roughly 25% of the global economy, a share that has actually changed significantly over the last 60 years. The finance, insurance, and real estate ($4.7 trillion) industries add the most to the countryโ€™s economy, followed by professional and business services ($2.7 trillion) and government ($2.6 trillion).

Chinaโ€™s economy is second in nominal terms, hovering at near $17 trillion in GDP. It remains the largest manufacturer worldwide based on output with extensive production of steel, electronics, and robotics, among others.

The largest economy in Europe is Germany, which exports roughly 20% of the worldโ€™s motor vehicles. In 2019, overall trade equaled nearly 90% of the countryโ€™s GDP.

The World Economy: 50 Smallest Countries

On the other end of the spectrum are the world’s smallest economies by GDP, primarily developing and island nations.

With a GDP of $70 million, Tuvalu is the smallest economy in the world. Situated between Hawaii and Australia, the largest industry of this volcanic archipelago relies on territorial fishing rights.

In addition, the country earns significant revenue from its “.tv” web domain. Between 2011 and 2019, it earned $5 million annually from companiesโ€”including Amazon-owned Twitch to license the Twitch.tv domain nameโ€”equivalent to roughly 7% of the country’s GDP.

CountriesRegionGDP (B)
๐Ÿ‡น๐Ÿ‡ป TuvaluOceania$0.07
๐Ÿ‡ณ๐Ÿ‡ท NauruOceania$0.1
๐Ÿ‡ต๐Ÿ‡ผ PalauOceania$0.2
๐Ÿ‡ฐ๐Ÿ‡ฎ KiribatiOceania$0.2
๐Ÿ‡ฒ๐Ÿ‡ญ Marshall IslandsOceania$0.2
๐Ÿ‡ซ๐Ÿ‡ฒ MicronesiaOceania$0.4
๐Ÿ‡จ๐Ÿ‡ฐ Cook IslandsOceania$0.4*
๐Ÿ‡น๐Ÿ‡ด TongaOceania$0.5
๐Ÿ‡ธ๐Ÿ‡น Sรฃo Tomรฉ and PrรญncipeAfrica$0.5
๐Ÿ‡ฉ๐Ÿ‡ฒ DominicaCaribbean$0.6
๐Ÿ‡ป๐Ÿ‡จ St. Vincent and the GrenadinesCaribbean$0.8
๐Ÿ‡ผ๐Ÿ‡ธ SamoaOceania$0.8
๐Ÿ‡ฐ๐Ÿ‡ณ St. Kitts and NevisCaribbean$1.0
๐Ÿ‡ป๐Ÿ‡บ VanuatuOceania$1.0
๐Ÿ‡ฌ๐Ÿ‡ฉ GrenadaCaribbean$1.1
๐Ÿ‡ฐ๐Ÿ‡ฒ ComorosAfrica$1.3
๐Ÿ‡ธ๐Ÿ‡จ SeychellesAfrica$1.3
๐Ÿ‡ฆ๐Ÿ‡ฌ Antigua and BarbudaCaribbean$1.4
๐Ÿ‡ฌ๐Ÿ‡ผ Guinea-BissauAfrica$1.6
๐Ÿ‡ธ๐Ÿ‡ง Solomon IslandsOceania$1.7
๐Ÿ‡น๐Ÿ‡ฑ Timor-LesteAsia$1.7
๐Ÿ‡ฑ๐Ÿ‡จ St. LuciaCaribbean$1.7
๐Ÿ‡ธ๐Ÿ‡ฒ San MarinoEurope$1.7
๐Ÿ‡จ๐Ÿ‡ป Cabo VerdeAfrica$1.9
๐Ÿ‡ง๐Ÿ‡ฟ BelizeCentral America$1.9
๐Ÿ‡ฌ๐Ÿ‡ฒ GambiaAfrica$2.0
๐Ÿ‡ช๐Ÿ‡ท EritreaAfrica$2.3
๐Ÿ‡ฑ๐Ÿ‡ธ LesothoAfrica$2.5
๐Ÿ‡ง๐Ÿ‡น BhutanAsia$2.5
๐Ÿ‡จ๐Ÿ‡ซ Central African RepublicAfrica$2.6
๐Ÿ‡ธ๐Ÿ‡ท SurinameSouth America$2.8
๐Ÿ‡ฆ๐Ÿ‡ผ ArubaCaribbean$2.9
๐Ÿ‡ง๐Ÿ‡ฎ BurundiAfrica$3.2
๐Ÿ‡ฆ๐Ÿ‡ฉ AndorraEurope$3.2
๐Ÿ‡ธ๐Ÿ‡ธ South SudanAfrica$3.3
๐Ÿ‡ฑ๐Ÿ‡ท LiberiaAfrica$3.4
๐Ÿ‡ฉ๐Ÿ‡ฏ DjiboutiAfrica$3.7
๐Ÿ‡ธ๐Ÿ‡ฑ Sierra LeoneAfrica$4.4
๐Ÿ‡ธ๐Ÿ‡ฟ EswatiniAfrica$4.5
๐Ÿ‡ฒ๐Ÿ‡ป MaldivesAsia$4.6
๐Ÿ‡ซ๐Ÿ‡ฏ FijiOceania$4.6
๐Ÿ‡ง๐Ÿ‡ง BarbadosCaribbean$4.7
๐Ÿ‡ธ๐Ÿ‡ด SomaliaAfrica$5.4
๐Ÿ‡ฒ๐Ÿ‡ช MontenegroEurope$5.5
๐Ÿ‡ฑ๐Ÿ‡ฎ LiechtensteinEurope$6.8*
๐Ÿ‡ฌ๐Ÿ‡พ GuyanaSouth America$7.4
๐Ÿ‡ฒ๐Ÿ‡จ MonacoEurope$7.4*
๐Ÿ‡น๐Ÿ‡ฏ TajikistanAsia$8.1
๐Ÿ‡ฐ๐Ÿ‡ฌ Kyrgyz RepublicAsia$8.2
๐Ÿ‡น๐Ÿ‡ฌ TogoAfrica$8.5

*2019 GDP (latest available) used where IMF estimates for 2021 were unavailable.

Like Tuvalu, many of the worldโ€™s smallest economies are in Oceania, including Nauru, Palau, and Kiribati. Additionally, several countries above rely on the tourism industry for over one-third of their employment.

The Fastest Growing Economies in the World in 2021

With 123% projected GDP growth, Libyaโ€™s economy is estimated to have the sharpest rise.

Oil is propelling its growth, with 1.2 million barrels being pumped in the country daily. Along with this, exports and a depressed currency are among the primary factors behind its recovery.

RankCountryRegion
2021 Real GDP Growth (Annual % Change)
1๐Ÿ‡ฑ๐Ÿ‡พ Libya Africa123.2%
2๐Ÿ‡ฌ๐Ÿ‡พ Guyana South America20.4%
3๐Ÿ‡ฒ๐Ÿ‡ด Macao Asia20.4%
4๐Ÿ‡ฒ๐Ÿ‡ป Maldives Asia18.9%
5๐Ÿ‡ฎ๐Ÿ‡ช Ireland Europe13.0%
6๐Ÿ‡ฆ๐Ÿ‡ผ Aruba Caribbean12.8%
7๐Ÿ‡ต๐Ÿ‡ฆ Panama Central America12.0%
8๐Ÿ‡จ๐Ÿ‡ฑ Chile South America11.0%
9๐Ÿ‡ต๐Ÿ‡ช PeruSouth America10.0%
10๐Ÿ‡ฉ๐Ÿ‡ด Dominican RepublicCaribbean9.5%

Irelandโ€™s economy, with a projected 13% real GDP growth, is being supported by the largest multinational corporations in the world. Facebook, TikTok, Google, Apple, and Pfizer all have their European headquarters in the country, which has a 12.5% corporate tax rateโ€”or about half the global average. But these rates are set to change soon, as Ireland joined the OECD 15% minimum corporate tax rate agreement which was finalized in October 2021.

Macao’s economy bounced back after COVID-19 restrictions began to lift, but more storm clouds are on the horizon for the Chinese district. The CCP’s anti-corruption campaign and recent arrests could signal a more strained relationship between Mainland China and the world’s largest gambling hub.

Looking Ahead at the World’s GDP

The global GDP figure of $94 trillion may seem massive to us today, but such a total might seem much more modest in the future.

In 1970, the world economy was only about $3 trillion in GDPโ€”or 30 times smaller than it is today. Over the next thirty years, the global economy is expected to more or less double again. By 2050, global GDP could total close to $180 trillion.

Correction: In earlier versions of this graphic, countries such as Vietnam and Pakistan were inadvertently not included in the visualization. They have now been added. In cases where the IMF has no data for 2021 (specifically Pakistan, Syria, Afghanistan, and Lebanon), the latest available data is used.

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