Norway has been named the world’s most prosperous country for the seventh year running, while neighbouring countries Denmark and Sweden also make the top five in a ranking of 142 countries across the world.

 

 

The UK achieved the biggest turnaround in any major developed economy    

 

The Scandinavian countries scored highly for factors including education, entrepreneurship and opportunity, the economy, health and social capital.

Oil-rich Norway has an unusually generous benefit system and an early retirement age, and has prospered outside the European Union.

However, the Nordic countries were criticised for their failures to address unemployment. Sweden has an unemployment rate of 7.8pc, Denmark 6.3pc and Finland 9.4pc.

 

Three of the five Nordic countries are struggling with unemployment

 

 

The UK took fifteenth place, having achieved the biggest turnaround in any major developed economy, according to the 2015 Prosperity Index by London-based think tank The Legatum Institute.

Britain has the highest level of full time employment among the poorest 20pc of the population than any major EU economy. In 2009, just 6pc of the poorest fifth had a full-time job. In 2014, this number had risen fivefold to 30pc.

The UK also scored highly for its ease of starting a business, based on low start-up costs and people’s perceptions of the UK’s entrepreneurial environment. Some 88pc of Britons believe that if you work hard you can get ahead in life, up from 84pc last year, and 78pc in 2010.

Nathan Gamester, programme director of the Prosperity Index, said: “The UK is among the most prosperous countries in the world. This is due to a number of factors including a firm belief in the law, the ability to protect its citizens, and the fact that it is one of the most open and free nations in the world.”

 

The 5 most prosperous countries The 5 least prosperous countries  1. Norway  1. Central Africa Republic  2. Switzerland  2. Afghanistan  3. Denmark  3. Haiti  4. New Zealand  4. Chad  5. Sweden  5. Burundi 

 

The study, which ranked countries across eight categories, also highlighted the rise of South East Asian economies since the recession. Singapore took first place in the Economy sub-index while Indonesia was named the top economic performer, having climbed 21 places in the global rankings in the past seven years.

Almost half of Singapore’s manufactured exports are classified “high-tech”, the third highest in the world. The country also has a score of $240,750 capital per worker, making it the second-highest productive economy in the world.

Switzerland and New Zealand have secured free trade agreements with China, the world’s second largest economy.

However, the report warns of underlying weakness in China, as unemployment has risen and job market expectations are some of the lowest in Asia. Chinese premier Li Keqiang said earlier this year that difficulties facing the economy may be “more formidable” than in 2014.

 

The rise of Islamic State has changed the nature of global security in the Middle East, the report added, warning that the world is becoming an increasingly dangerous place.

Falling levels of safety and security also blight the performance of the US this year. The world’s largest economy fell one place to 11th in the overall ranking, but ranked outside the top 30 in the Safety & Security sub-index.

This is because of the US’ track record on state-sponsored violence, which includes sanctioned killings, torture, disappearances and political imprisonment.

Based on the Amnesty reports, the US scores poorly because of the holding of prisoners on Guantanamo Bay, the holding of prisoners in solitary confinement in US jails, the continued use of the death penalty, and the excessive use of force by the police.

When it comes to personal safety, 17pc of US citizens report they have been a victim of theft – close to the rate recorded in Nicaragua, Panama, and Brazil, which is 18pc.

 

In contrast to the US, Canada rose to first place in the Personal Freedom sub-index this year, reflecting high scores in measures of tolerance and civil liberties.

Canada, Norway, New Zealand, Iceland, and Ireland are the five countries most tolerant towards immigrants, with around nine in ten citizens believing their country is welcoming towards migrants.

The 5 most prosperous countries The 5 least prosperous countries 1. Norway 1. Central Africa Republic 2. Switzerland 2. Afghanistan 3. Denmark 3. Haiti 4. New Zealand 4. Chad 5. Sweden 5. Burundi