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There are 195 prosperous countries in the world, yet only some are flourishing. Prosperity is the total cumulative sum of many factors. What makes a country prosperous is not just about its monetary value.
Many factors can make a country thrive. Some factors include safety and security, personal freedom, infrastructure, economic quality, living conditions, health, education, and the natural environment.
Countries are ranked as the most prosperous based on individual placements in these categories, based on a study of 300 different factors and 167 countries. A higher score indicates a better position.
1. Denmark
Denmark is a European country ranked as the most prosperous, with a total score of 84.55 on the Legatum Prosperity Index. The country’s remarkable healthcare system is continuously reformed and scores 81.07.
Additionally, the country is secure and safe to live in, with a score of 92.59. It also has a gross domestic product based on purchasing power parity (GDP-PPP) per capita of 77,641.
2. Sweden
With a parliamentary constitutional monarchy, Sweden earns second place with a cumulative score of 83.67. According to Riks Bank, the purchasing power here is 15-20 percent above the average for OECD countries. An estimate of the GDP division in 2018 is agriculture: 1.4%; industry: 21.1%; and services: 66.1%.
Sweden also has a score of 91.90 regarding personal freedom, making it a great country to live in.
3. Norway
Close behind Sweden is Norway, with a total of 83.59. When it comes to personal freedom, this country has the highest score of 94.10. The country is home to 5.4 million people and has a low 5.0% unemployment rate, making it one of the best countries.
According to Heritage, the judicial category scores are 98.8 in Property Rights, 96.7 in Judicial Effectiveness, and 95.6 in Government Integrity. Living conditions received a score of 94.70, contributing to its ranking.
4. Finland
Finland’s score of 83.47 makes it one of the most prosperous countries. It excels in living conditions, safety, security, and personal freedom.
According to the World Bank, the country ranks 9 out of 132 in the global innovation index, making it a hub for creativity and technology. Additionally, on the environmental performance index, the country ranks 3rd worldwide.
5. Switzerland
Switzerland has a total score of 83.42, with 87.67 in governance and 95.66 in safety and security. Switzerland boasts one of the world’s highest per capita GDPs, mainly from the services industry, and 99 percent of its enterprises are small to medium-sized.
According to the GIS Report, economic freedom, individual responsibility, and the openness of the economy and private property contribute to the country’s economic success.
6. Netherlands
Another European country that has taken one of the top spots is the Netherlands, with a total score of 82.32. Regarding healthcare, the Netherlands has a massive score of 82.05 and 95.86 in the living conditions category.
According to its government, one of the reasons for the country’s prosperity is its cooperation with the European Union.
7. Luxembourg
With rocky gorges and scenic beauty, Luxembourg has a cumulative score of 81.83, with 96.32 in safety and security, 80.72 in enterprise environment, and 81.59 in health.
The BBC reports that the average life expectancy of men here is 79, while women tend to live to 84. The country is also known to be a hub for investment management, which makes it a fantastic place for opportunities and growth.
8. Iceland
Iceland’s total score of 81.02 includes 88.79 in personal freedom, 93.82 in living conditions, and 85.19 in education, placing it high on the list.
According to the World Bank, the country scored 95.28 in terms of political stability and ranked first on the global gender index in 2022. It also has the best Women, Business, and Law Index score.
9. Germany
Germany’s total score is 80.81, with 79.70 in enterprise conditions, 94.42 in living conditions, and 80.23 in infrastructure and market access.
According to the German government, the automotive industry earned 506 billion euros in 2022 and 182 billion euros in 2020 in the electrical engineering industries. Additionally, its innovation is highlighted by the 57,214 patent applications in 2022.
10. New Zealand
New Zealand is the sixth-largest country by area and received a cumulative score of 80.47. It scored 82.58 in the investment environment category and 90.66 in living conditions. The category with the lowest score for the country was economic quality, with 69.88.
According to the SP Index, in New Zealand, 76 percent of the working-age population has a paid job, which is nine percent more than the global average.
11. Ireland
Ireland is in 11th place, scoring 80.31 overall. The country boasts a 90.97 in safety and security, 85 in education, and 81.72 in governance, which adds to its overall ranking.
According to the Central Bank Report, Ireland’s economy performed much better than other advanced economies during the 2020 pandemic. In the same year, the country also ranked second on the Human Development Index.
12. United Kingdom
With a cumulative score of 79.95, the United Kingdom has 81.49 in the investment environment, 94.16 in housing conditions, and 84.81 in education.
Investopedia reports that the country had the sixth-largest economy in 2022, with the services sector, comprising finance, retail, entertainment, and more, accounting for 80% of the U.K.’s economic activity.
13. Canada
With a score of 79.62, Canada ranks 13th on the list. The country scores 86.62 in personal freedom, 84.19 in education, and 77.14 in investment and market access.
According to Investopedia, the UK, the US, and China are the country’s major trading partners. The country has a diverse economy that depends on mining natural resources.
14. Austria
Austria earns 79.38, making it the 14th most prosperous country in the world. It is a phenomenal place to reside, with a score of 85.99 in personal freedom, 81.19 in governance, and 79.61 in the investment environment.
The Austrian government reports that SMEs, or small and medium enterprises, are the basis of the Austrian economy, making up 99.6% of all companies in the country.
15. Australia
Australia takes the 15th spot with an overall score of 79.36. Its major performing categories include Education, with 85.99; living conditions, with 93.06; and safety and security, with 87.91.
According to the Australian government, in 2022, Australia had the 9th highest GDP per capita and the 9th largest stock market. It also ranked first for financial freedom and second for trade freedom.
16. Japan
With 78.22 overall, Japan has an impressive score of 92.78 in safety and security and 86.50 in health. However, its worst category is social capital, a measly 43.82, one of the world’s lowest.
According to the World Bank, Japan ranked first on the travel and tourism development index in 2021 and earned a six on the global competitiveness index in 2019.
17. Singapore
Singapore is 17th, with a cumulative score of 78.21. This nation-state scored 85.75 in infrastructure and market access, 80.10 in economic quality, and 91.44 in education. However, it ranks lower than other countries on the list due to a 48.63 in personal freedom.
According to Guide Me Singapore, the country’s economy is one of the most stable, with no foreign debt and high government revenue.
18. Belgium
Belgium is in 18th place, scoring 77.84 overall. It has 92.78 in living conditions, 80.31 in governance, and 80.60 in health.
According to US News, the country has a $65,027 GDP per capita, with the tenth highest ranking for social purpose and eleventh highest for quality of life.
19. United States
The United States earned a total score of 77.44, ranking it nineteenth globally. It scored 82.85 in enterprise conditions, 73.91 in social capital, and 83.15 in education.
According to US News, the country is especially prominent in terms of cultural influence, with strong consumer brands. It also ranks first in entrepreneurship, with easy access to capital and a well-developed infrastructure.
20. Taiwan
Some of Taiwan’s best categories include safety and security, with a 92.96. The country scored 90.22 in living conditions and 84.79 in education, for an overall score of 77.36.
According to Forbes, Taiwan developed from a poverty-stricken island to one of the region’s most robust economic powerhouses. Its human development index score is similar to France’s.
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