For the first time in its history, Israel ranks among the top 20 economies based on GDP per capita, Forbes Israel reports, based on International Monetary Fund data.
GDP per capita breaks down a country’s economic output per person and is a global measure for assessing the prosperity of nations. Small, rich countries and more developed industrial countries tend to have the highest per capita GDP.
According to the data compiled by the publication, with GDP per capita of $43,689 for 2020, Israel ranked 19th out of the top 20, above No. 20 Canada, with per capita GDP at $43,278; No. 21 New Zealand, with $41,127, and the UK with $40,406 at No. 22.
Luxemburg tops the ranking with GDP per capita of $116,921, followed by Switzerland, with $86,849, and Ireland with $83,850. Norway comes in fourth at $67,176, and the US fifth, at $63,416, the data showed.
In 2019, Israel ranked 21st, and a decade ago it wasn’t even in the top 30 leading economies, Forbes said. In 2010, Israel was ranked 32nd globally for per capita GDP.
Israel seems to be emerging from its battle against the deadly coronavirus pandemic with a battered economy and massive unemployment, but still in better shape than other developed nations. The nation’s gross domestic product shrank by 2.5% in 2020, its worst contraction on record, compared to an average 6.6% drop last year for the European Union, a 3.5% decline in the US, and a 5.5% contraction on average in OECD countries.
The fact that Israel fared better economically in coping with the crisis than other developed nations, thanks to its booming tech sector, helped the country climb up in its GDP per capita ranking, Forbes said.