While determining the richness of a country and compare it with the others, the main indicator is the GDP per capita (a total value of goods and services produced by a nation during a year divided by its total population). This is the main parameter for finding out the richness and prosperity of country as a whole. It also shows how rich each citizen is, on average, but unfortunately this parameter does not take into account differences in the cost of living in various parts of the world. In some countries the per capita income is high but the cost of living is also high. In such countries the level of prosperity is not satisfactory. While in some countries the per capita income is not as high as mentioned above, but the cost of living is reasonable, then the prosperity level of these countries is quit satisfactory.
The richness and prosperity are quit different things. Per capita income explains the richness, while prosperity is measured through per capita income+cost of living.
For the most accurate measurement economists use GDP based on Purchasing Power Parity, the so called GDP (PPP) per capita. It calculates the total value of goods and services produced in each country, as if they were sold at US prices. So we can compare nations with different standards of living by measuring their GDP (PPP) per capita in international dollars (equivalent to US dollar), and find out who is the richest of them.
A strong economy positively affects an average life expectancy in a country, but do not influence people’s satisfaction with their lives, do not determine how happy are they. A Ranking of Happiness (based on the poll of real people from the different parts of the world) could give the answer. Respondents evaluate own living conditions and happiness level on a scale from 0 to 10 points. On the basis of these data, the World Ranking of Happiness is formed (note that some microstates do not participate in the survey).
||GDP(PPP) per capita 2016 (Int.$)
||Average life expectancy (years)
Rank 2017 (score)
||United Arab Emirates