Charted: The Biggest Wealth Gaps Between Neighboring Countries

Pallavi Rao
2024-09-27 08:09:08
www.visualcapitalist.com

Charted: Neighboring Countries With Large Wealth Gaps

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Statistics can sometimes mask huge disparities within regions, especially when it comes to economic might. For example, North America accounts for nearly one-third of the world’s GDP, largely because of the United States’ $29 trillion economy.

To illustrate other regional disparities, we map out five pairs of neighboring countries, each with a large difference in GDP per capita. Data is measured in U.S. dollars and sourced from the International Monetary Fund (IMF), as of 2024.

Neighboring Countries With Entirely Different Economies

Israel and Egypt may share a 128 mile (206 km) border but there’s little else in common between these neighbors.

Country	GDP per Capita	Wealthier Neighbor	GDP per Capita
Papua New Guinea	$2,530	Australia	$66,590
Egypt	$3,220	Israel	$53,370
Russia	$14,390	Norway	$94,660
Malaysia	$13,310	Singapore	$88,450
Mexico	$15,250	U.S.	$85,370

In fact, Israel’s GDP per capita is nearly 17x Egypt’s, illustrating the deep economic divide between the two nations. Political developments in the 20th century have pushed each country down diametrically different paths.

Israel has become a tech powerhouse, known for cybersecurity and biotech. Meanwhile, Egypt’s economy relies heavily on agriculture, tourism, and the Suez Canal, but struggles with high unemployment and slower growth.

These differences reflect not just their current economies, but years of divergent development shaped by politics, investment, and global partnerships.

Similarly, the GDP per capita difference between Russia ($14,000) and Norway ($95,0000 shows how economies can be polar opposite despite having many of the same natural resources.

Norway has pursued diversification, with strong sectors in shipping, fisheries, and renewable energy in addition to its oil and gas resources. It also has a robust welfare system and well-developed infrastructure.

Russia, on the other hand, has stayed reliant on its oil, gas, and minerals, making it more susceptible to global commodity price fluctuations and sanctions.

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Looking for another chart with stark regional economic divides? Check out Germany’s Economy Equals All These Countries Combined for all the countries the $4.6T powerhouse could replace.

The post Charted: The Biggest Wealth Gaps Between Neighboring Countries appeared first on Visual Capitalist.

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