The grand duchy’s residents have an average wealth of $140,694 when the GPD per capita and purchasing power parity are considered. Photo: Shutterstock

The grand duchy is the world’s wealthiest nation in 2022, according to news site Global Finance.

Though other countries such as the US, China, Japan or Germany have much larger GPD than Luxembourg, the GPD on its own does not paint an accurate picture, argues the site. Instead, the residents’ living conditions can be understood better by dividing the GPD by the number of residents and adjusting it for purchasing power parity. This way, the cost of living and inflation rates are included in the equation.

When taking this into consideration, smaller countries like Luxembourg, Singapore (2nd) and Ireland (3rd) took the lead. In international dollars, the grand duchy topped the chart with an average wealth per capita of $140,694, while in Burundi, the country with the lowest ranking (192nd), there was a GPD-PPP rate of $856.

Neighbouring countries did fairly well too: Germany took the 19th spot ($63,271), while Belgium ranked 22nd ($61,587). France landed on rank 26 ($56,036).

However, even countries which recovered well from the pandemic’s effect on their economies like Luxembourg will be hit hard by the energy crisis and the consequences of the war in Ukraine, the site reminds.

The site based itself on a report by the International Monetary Fund to come to its conclusions.