Singapore vs Luxembourg: which is the richest country in 2025?

Luxembourg continues to rank among the world’s wealthiest countries by GDP per capita, a measure of economic output per resident, according to the International Monetary Fund (IMF) world economic outlook.

Luxembourg’s nominal GDP per capita is projected at around $146,818, keeping the country among the world’s wealthiest.

In comparison, Singapore, another high-income city-state, is expected to record a nominal GDP per capita of about $94,481.

However, when adjusted for purchasing power parity (PPP) – which takes into account differences in the cost of living – Singapore’s GDP per capita rises to roughly $156,755, slightly above Luxembourg’s $152,915, which means that while Luxembourg produces more economic output per person, residents of Singapore may actually be able to buy slightly more with their income because prices there are lower.

The effect of cross-border workers

Luxembourg’s elevated GDP per capita is influenced by its unique labour market: a substantial portion of employees commute daily from neighbouring countries, primarily France, Belgium, and Germany.

While their economic output is included in Luxembourg’s GDP, they are not counted as part of the resident population. This inflates GDP per capita relative to the income of actual residents.

To measure income more accurately, economists use Gross National Income (GNI) per capita, which reflects income earned by residents, including net income from abroad.

Luxembourg’s GNI per capita in 2023 – the latest available data – is approximately $83,980, according to the World Bank, substantially lower than its nominal GDP per capita.

This shows that the role of cross-border labour and multinational corporate activity contribute in elevating Luxembourg’s headline GDP figures, and that while Luxembourg produces significant economic output per resident, the income actually accruing to residents is lower.