Money
The Relationship Between Money and Happiness
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Charting the Relationship Between Money and Happiness
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Can money buy you happiness?
It’s a longstanding question that has many different answers, depending on who you ask.
Today’s chart approaches this fundamental question from a data-driven perspective, and it provides one potential solution: money does buy some happiness, but only to a limited extent.
Money and Happiness
First, a thinking exercise.
Let’s say you have two hypothetical people: one of them is named Beff Jezos and he’s a billionaire, and the other is named Jill Smith and she has a more average net worth. Who do you think would be happiest if their wealth was instantly doubled?
Beff might be happy that he’s got more in the bank, but materially his life is unlikely to change much – after all, he’s a billionaire. On the flipside, Jill also has more in the bank and is likely able to use those additional resources to provide better opportunities for her family, get out of debt, or improve her work-life balance.
These resources translate to real changes for Jill, potentially increasing her level of satisfaction with life.
Just like these hypotheticals, the data tells a similar story when we look at countries.
The Data-Driven Approach
Today’s chart looks at the relationship between GDP per capita (PPP) and the self-reported levels of happiness of each country. Sources for data are the World Bank and the World Happiness Report 2017.
According to the numbers, the relationship between money and happiness is strong early on for countries. Then later, when material elements of Maslow’s hierarchy are met, the relationship gets harder to predict.
In general, this means that as a country’s wealth increases from $10k to $20k per person, it will likely slide up the happiness scale as well. For a double from $30k to $60k, the relationship still holds – but it tends to have far more variance. This variance is where things get interesting.
Outlier Regions
Some of the most obvious outliers can be found in Latin America and the Middle East:
In Latin America, people self-report that they are more satisfied than the trend between money and happiness would predict.
Costa Rica stands out in particular here, with a GDP per capita of $15,400 and a 7.14 rating on the Cantril Ladder (which is a measure of happiness). Whether it’s the country’s rugged coastlines or the local culture that does the trick, Costa Rica has higher happiness ratings than the U.S., Belgium, or Germany – all countries with far higher levels of wealth.
In the Middle East, the situation is mostly reversed. Countries like Saudi Arabia, Qatar, Iran, Iraq, Yemen, Turkey, and the U.A.E. are all on the other side of the trend line.
Outlier Countries
Within regions, there is even plenty of variance.
We just mentioned the Middle East as a place where the wealth-happiness continuum doesn’t seem to hold up as well as it does in other places in the world.
Interestingly, in Qatar, which is actually the wealthiest country in the world on a per capita basis ($127k), things are even more out of whack. Qatar only scores a 6.37 on the Cantril Ladder, making it a big exception even within the context of the already-outlying Middle East.
Nearby Saudi Arabia, U.A.E., and Oman are all poorer than Qatar per capita, yet they are happier places. Oman rates a 6.85 on the satisfaction scale, with less than one-third the wealth per capita of Qatar.
There are other outlier jurisdictions on the list as well: Thailand, Uzbekistan, and Pakistan are all significantly happier than the trend line (or their regional location) would project. Meanwhile, places like Hong Kong, Ireland, Singapore, and Luxembourg are less happy than wealth would predict.
Money
Animated Chart: Remittance Flows and GDP Impact By Country
Which countries rely on remittance flows the most? This animation shows the amount of remittance income that countries received in 2022.

Visualizing Remittance Flows and GDP Impact By Country
The COVID-19 pandemic slowed down the flow of global immigration by 27%. Alongside it, travel restrictions, job losses, and mounting health concerns meant that many migrant workers couldn’t send money in the form of remittances back to families in their home countries.
This flow of remittances received by countries dropped by 1.5% to $711 billion globally in 2020. But over the next two years, things quickly turned back around.
As visa approvals restarted and international borders opened, so did international migration and global remittance flows. In 2021, total global remittances were estimated at $781 billion and have further risen to $794 billion in 2022.
In these images, Richie Lionell uses the World Bank’s KNOMAD data to visualize this increasing flow of money across international borders in 176 countries.
Why Do Remittances Matter?
Remittances contribute to the economy of nations worldwide, especially low and middle-income countries (LMICs).
They have been shown to help alleviate poverty, improve nutrition, and even increase school enrollment rates in these nations. Research has also found that these inflows of income can help recipient households become resilient, especially in the face of disasters.
At the same time, it’s worth noting that these transfers aren’t a silver bullet for recipient nations. In fact, some research shows that overreliance on remittances can cause a vicious cycle that doesn’t translate to consistent economic growth over time.
Countries Receiving the Highest Remittances
For the past 15 years, India has consistently topped the chart of the largest remittance beneficiaries.
Rank | Remittance Inflows by Country | 2022 (USD) |
---|---|---|
1 | India | $100,000M |
2 | Mexico | $60,300M |
3 | China | $51,000M |
4 | Philippines | $38,000M |
5 | Egypt, Arab Rep. | $32,337M |
6 | Pakistan | $29,000M |
7 | France | $28,520M |
8 | Bangladesh | $21,000M |
9 | Nigeria | $20,945M |
10 | Vietnam | $19,000M |
11 | Ukraine | $18,421M |
12 | Guatemala | $18,112M |
13 | Germany | $18,000M |
14 | Belgium | $13,500M |
15 | Uzbekistan | $13,500M |
16 | Morocco | $11,401M |
17 | Romania | $11,064M |
18 | Dominican Republic | $9,920M |
19 | Indonesia | $9,700M |
20 | Thailand | $9,500M |
21 | Colombia | $9,133M |
22 | Italy | $9,000M |
23 | Nepal | $8,500M |
24 | Spain | $8,500M |
25 | Honduras | $8,284M |
26 | Poland | $8,000M |
27 | Korea, Rep. | $7,877M |
28 | El Salvador | $7,620M |
29 | Lebanon | $6,841M |
30 | Israel | $6,143M |
31 | United States | $6,097M |
32 | Russian Federation | $6,000M |
33 | Serbia | $5,400M |
34 | Brazil | $5,045M |
35 | Japan | $5,000M |
36 | Portugal | $4,694M |
37 | Ghana | $4,664M |
38 | Jordan | $4,646M |
39 | Czech Republic | $4,539M |
40 | Haiti | $4,532M |
41 | Ecuador | $4,468M |
42 | Georgia | $4,100M |
43 | Kenya | $4,091M |
44 | Croatia | $3,701M |
45 | Peru | $3,699M |
46 | Sri Lanka | $3,600M |
47 | West Bank and Gaza | $3,495M |
48 | Jamaica | $3,419M |
49 | Armenia | $3,350M |
50 | Tajikistan | $3,200M |
51 | Nicaragua | $3,126M |
52 | Kyrgyz Republic | $3,050M |
53 | Senegal | $2,711M |
54 | Austria | $2,700M |
55 | Switzerland | $2,631M |
56 | Sweden | $2,565M |
57 | United Kingdom | $2,501M |
58 | Hungary | $2,404M |
59 | Bosnia and Herzegovina | $2,400M |
60 | Slovak Republic | $2,300M |
61 | Moldova | $2,170M |
62 | Azerbaijan | $2,150M |
63 | Tunisia | $2,085M |
64 | Zimbabwe | $2,047M |
65 | Luxembourg | $2,000M |
66 | Netherlands | $2,000M |
67 | Myanmar | $1,900M |
68 | Algeria | $1,829M |
69 | Albania | $1,800M |
70 | Somalia | $1735M |
71 | Congo, Dem. Rep. | $1,664M |
72 | Malaysia | $1,620M |
73 | Kosovo | $1,600M |
74 | Denmark | $1,517M |
75 | Latvia | $1,500M |
76 | Bolivia | $1,403M |
77 | Belarus | $1,350M |
78 | Cambodia | $1,250M |
79 | Bermuda | $1,200M |
80 | South Sudan | $1,187M |
81 | Uganda | $1,131M |
82 | Mali | $1,094M |
83 | South Africa | $1,019M |
84 | Sudan | $1,013M |
85 | Argentina | $966M |
86 | Montenegro | $920M |
87 | Finland | $880M |
88 | Bulgaria | $850M |
89 | Slovenia | $800M |
90 | Australia | $737M |
91 | Madagascar | $718M |
92 | Turkey | $710M |
93 | Canada | $700M |
94 | Lithuania | $700M |
95 | Togo | $668M |
96 | Greece | $665M |
97 | Costa Rica | $654M |
98 | Estonia | $626M |
99 | Qatar | $624M |
100 | Iraq | $624M |
101 | Gambia, The | $615M |
102 | Tanzania | $609M |
103 | Norway | $600M |
104 | Panama | $596M |
105 | Burkina Faso | $589M |
106 | Hong Kong SAR, China | $571M |
107 | Paraguay | $554M |
108 | Mozambique | $545M |
109 | Niger | $534M |
110 | Cyprus | $527M |
111 | Lesotho | $527M |
112 | Mongolia | $500M |
113 | Rwanda | $469M |
114 | Fiji | $450M |
115 | North Macedonia | $450M |
116 | Guyana | $400M |
117 | Cabo Verde | $375M |
118 | Kazakhstan | $370M |
119 | Cameroon | $365M |
120 | Cote d'Ivoire | $360M |
121 | Liberia | $351M |
122 | Afghanistan | $350M |
123 | Ethiopia | $327M |
124 | Samoa | $280M |
125 | Mauritius | $279M |
126 | Saudi Arabia | $273M |
127 | Malta | $271M |
128 | Malawi | $267M |
129 | Zambia | $260M |
130 | Tonga | $250M |
131 | Comoros | $250M |
132 | Ireland | $249M |
133 | Suriname | $221M |
134 | Benin | $209M |
135 | Lao PDR | $200M |
136 | Timor-Leste | $185M |
137 | Sierra Leone | $179M |
138 | Guinea-Bissau | $178M |
139 | Trinidad and Tobago | $172M |
140 | Mauritania | $168M |
141 | Iceland | $164M |
142 | Eswatini | $148M |
143 | Belize | $142M |
144 | Curacao | $131M |
145 | Uruguay | $127M |
146 | Chile | $78M |
147 | Vanuatu | $75M |
148 | St. Vincent and the Grenadines | $70M |
149 | Grenada | $69M |
150 | Botswana | $56M |
151 | St. Lucia | $55M |
152 | Bhutan | $55M |
153 | Djibouti | $55M |
154 | Dominica | $52M |
155 | Burundi | $50M |
156 | Aruba | $44M |
157 | Namibia | $44M |
158 | Guinea | $41M |
159 | Solomon Islands | $40M |
160 | Oman | $39M |
161 | Antigua and Barbuda | $35M |
162 | St. Kitts and Nevis | $33M |
163 | Marshall Islands | $30M |
164 | Kuwait | $27M |
165 | New Zealand | $25M |
166 | Macao SAR, China | $17M |
167 | Angola | $16M |
168 | Kiribati | $15M |
169 | Cayman Islands | $14M |
170 | Sao Tome and Principe | $10M |
171 | Seychelles | $9M |
172 | Maldives | $5M |
173 | Gabon | $4M |
174 | Palau | $2M |
175 | Papua New Guinea | $2M |
176 | Turkmenistan | $1M |
Total | World | $794,059M |
With an estimated $100 billion in remittances received, India is said to have reached an all-time high in 2022.
This increasing flow of remittances can be partially attributed to migrant Indians switching to high-skilled jobs in high-income countries—including the U.S., the UK, and Singapore—from low-skilled and low-paying jobs in Gulf countries.
Mexico and China round out the top three remittance-receiving nations, with estimated inbound transfers of $60 billion and $51 billion respectively in 2022.
Impact on National GDP
While India tops the list of countries benefitting from remittances, its $100 billion received amounts to only 2.9% of its 2022 GDP.
Meanwhile, low and middle-income countries around the world heavily rely on this source of income to boost their economies in a more substantive way. In 2022, for example, remittances accounted for over 15% of the GDP of 25 countries.
Rank | Remittance Inflows by Country | % of GDP (2022) |
---|---|---|
1 | Tonga | 49.9% |
2 | Lebanon | 37.8% |
3 | Samoa | 33.7% |
4 | Tajikistan | 32.0% |
5 | Kyrgyz Republic | 31.2% |
6 | Gambia, The | 28.3% |
7 | Honduras | 27.1% |
8 | South Sudan | 24.8% |
9 | El Salvador | 23.8% |
10 | Haiti | 22.4% |
11 | Nepal | 21.7% |
12 | Jamaica | 21.2% |
13 | Lesotho | 21.0% |
14 | Somalia | 20.6% |
15 | Comoros | 20.1% |
16 | Nicaragua | 19.9% |
17 | Guatemala | 19.8% |
18 | Armenia | 18.9% |
19 | West Bank and Gaza | 18.5% |
20 | Cabo Verde | 18.2% |
21 | Kosovo | 17.3% |
22 | Uzbekistan | 17.0% |
23 | Georgia | 16.2% |
24 | Moldova | 15.4% |
25 | Montenegro | 15.0% |
26 | Ukraine | 13.8% |
27 | Marshall Islands | 11.0% |
28 | Guinea-Bissau | 10.9% |
29 | Bosnia and Herzegovina | 10.1% |
30 | Albania | 9.8% |
31 | Senegal | 9.8% |
32 | Jordan | 9.6% |
33 | Philippines | 9.4% |
34 | Fiji | 9.2% |
35 | Liberia | 9.0% |
36 | Dominican Republic | 8.8% |
37 | Dominica | 8.6% |
38 | Serbia | 8.6% |
39 | Togo | 7.9% |
40 | Morocco | 7.9% |
41 | Pakistan | 7.7% |
42 | Vanuatu | 7.6% |
43 | Timor-Leste | 7.5% |
44 | Suriname | 7.3% |
45 | St. Vincent and the Grenadines | 7.3% |
46 | Kiribati | 7.2% |
47 | Egypt, Arab Rep. | 6.8% |
48 | Ghana | 6.1% |
49 | Mali | 5.9% |
50 | Grenada | 5.8% |
51 | Zimbabwe | 5.3% |
52 | Croatia | 5.3% |
53 | Belize | 5.3% |
54 | Sri Lanka | 4.8% |
55 | Madagascar | 4.7% |
56 | Vietnam | 4.5% |
57 | Bangladesh | 4.5% |
58 | Tunisia | 4.5% |
59 | Cambodia | 4.4% |
60 | Sierra Leone | 4.3% |
61 | Mexico | 4.2% |
62 | Nigeria | 4.1% |
63 | Rwanda | 3.8% |
64 | Ecuador | 3.8% |
65 | Latvia | 3.6% |
66 | Romania | 3.6% |
67 | Niger | 3.6% |
68 | Kenya | 3.5% |
69 | Bolivia | 3.2% |
70 | Burkina Faso | 3.2% |
71 | Myanmar | 3.1% |
72 | North Macedonia | 3.1% |
73 | Mongolia | 3.1% |
74 | Eswatini | 3.1% |
75 | Azerbaijan | 3.0% |
76 | Mozambique | 3.0% |
77 | St. Kitts and Nevis | 2.9% |
78 | India | 2.8% |
79 | St. Lucia | 2.7% |
80 | Guyana | 2.6% |
81 | Colombia | 2.6% |
82 | Congo, Dem. Rep. | 2.6% |
83 | Solomon Islands | 2.4% |
84 | Luxembourg | 2.4% |
85 | Mauritius | 2.4% |
86 | Sudan | 2.3% |
87 | Uganda | 2.3% |
88 | Malawi | 2.3% |
89 | Belgium | 2.2% |
90 | Sao Tome and Principe | 2.0% |
91 | Afghanistan | 2.0% |
92 | Slovak Republic | 2.0% |
93 | Antigua and Barbuda | 2.0% |
94 | Bhutan | 2.0% |
95 | Cyprus | 1.9% |
96 | Portugal | 1.8% |
97 | Thailand | 1.7% |
98 | Belarus | 1.6% |
99 | Mauritania | 1.6% |
100 | Estonia | 1.6% |
101 | Malta | 1.5% |
102 | Peru | 1.5% |
103 | Czech Republic | 1.5% |
104 | Djibouti | 1.4% |
105 | Burundi | 1.3% |
106 | Paraguay | 1.3% |
107 | Hungary | 1.3% |
108 | Slovenia | 1.2% |
109 | Aruba | 1.2% |
110 | Lao PDR | 1.2% |
111 | Benin | 1.1% |
112 | Israel | 1.1% |
113 | Poland | 1.1% |
114 | Lithuania | 1.0% |
115 | France | 1.0% |
116 | Bulgaria | 0.9% |
117 | Algeria | 0.9% |
118 | Zambia | 0.9% |
119 | Costa Rica | 0.9% |
120 | Palau | 0.8% |
121 | Panama | 0.8% |
122 | Cameroon | 0.8% |
123 | Tanzania | 0.7% |
124 | Indonesia | 0.7% |
125 | Spain | 0.6% |
126 | Iceland | 0.5% |
127 | Trinidad and Tobago | 0.5% |
128 | Austria | 0.5% |
129 | Cote d'Ivoire | 0.5% |
130 | Seychelles | 0.4% |
131 | Korea, Rep. | 0.4% |
132 | Italy | 0.4% |
133 | Germany | 0.4% |
134 | Sweden | 0.4% |
135 | Denmark | 0.3% |
136 | Malaysia | 0.3% |
137 | Namibia | 0.3% |
138 | Switzerland | 0.3% |
139 | Finland | 0.3% |
140 | Botswana | 0.3% |
141 | Greece | 0.2% |
142 | Ethiopia | 0.2% |
143 | Qatar | 0.2% |
144 | Russian Federation | 0.2% |
145 | Brazil | 0.2% |
146 | China | 0.2% |
147 | South Africa | 0.2% |
148 | Iraq | 0.2% |
149 | Guinea | 0.2% |
150 | Netherlands | 0.2% |
151 | Uruguay | 0.1% |
152 | Kazakhstan | 0.1% |
153 | Hong Kong SAR, China | 0.1% |
154 | Argentina | 0.1% |
155 | Norway | 0.1% |
156 | Japan | 0.1% |
157 | Maldives | 0.08% |
158 | Turkey | 0.08% |
159 | United Kingdom | 0.07% |
160 | Macao SAR, China | 0.07% |
161 | Ireland | 0.05% |
162 | Australia | 0.04% |
163 | Oman | 0.04% |
164 | Saudi Arabia | 0.03% |
165 | Chile | 0.02% |
166 | United States | 0.02% |
167 | Gabon | 0.02% |
168 | Kuwait | 0.01% |
169 | Angola | 0.01% |
170 | New Zealand | 0.01% |
171 | Papua New Guinea | 0.01% |
172 | Turkmenistan | 0.001% |
Known primarily as a tourist destination, the Polynesian country of Tonga banks on remittance inflows to support its economy. In 2022, the country’s incoming remittance flows were equal to almost 50% of its GDP.
Next on this list is Lebanon. The country received $6.8 billion in remittances in 2022, estimated to equal almost 38% of its GDP and making it a key support to the nation’s shrinking economy.
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