A country’s national wealth is the total wealth that it generates through economic activities. It is also the sum total of the wealth possessed by the people of a nation at any given time. This includes both tangible and foreign assets possessed by its citizens.
Accumulation of National Wealth
A country can accumulate national wealth through:
- Government policies: Domestic markets can be regulated to attract investments from domestic and foreign investors. Government policies can also aim to lure multinational corporations (MNCs) to invest in a country. This not only brings in considerable foreign investment but also creates job opportunities in the country.
Measurement of National Wealth
National wealth is measured by considering:
- the country’s gross domestic product (GDP)
- gross national product (GNP)
- network to network interface (NNI).
A country’s high per capita income, which is the average income of every citizen, denotes its prosperity. A country’s per capita income is generally measured in terms of commonly circulated currencies such as the Euro or the US dollar.
Measurement of national wealth is critical for a country’s policy makers and financial experts. They require accurate data and measurement of national wealth. This helps them to plan the country’s economic goals and to steer it in the right direction through economic analysis.