Official Site - The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.

Economy Sub-Index

Stable and growing economies increase per capita income and promote the overall wellbeing of its citizens. The Economy sub-index measures countries’ performances in four areas that are essential to promoting prosperity: macroeconomic policies, economic satisfaction and expectations, foundation for growth, and financial sector efficiency. As illustrated in the chart below, the variables in the sub-index are categorised into these areas.

The sub-index demonstrates that outcomes of sound macroeconomic policies, such as robust domestic savings rates, low rates of inflation and unemployment, and an efficient financial sector have a positive impact on both average levels of income and wellbeing.

It also shows that investing in physical capital per worker, innovative high-tech exports, and a competitive economy that facilitates domestic demand and attracts foreign investment are essential to boosting per capital income. Positive expectations about the future of the economy and satisfaction with living standards also make an important contribution to the overall wellbeing of a country’s citizens. While our research shows that increased economic strength over time is generally good for everyone, it also finds that rapid increases in GDP are related to lower levels of happiness in a society as people grapple with the dislocations that often accompany such growth.

Sub-Index Rankings