Economic Analysis

Analysis Date: September 17, 2025

            Key Research Questions
            How do economic indicators (GDP per capita, unemployment) relate to citizen well-being?
What are the regional patterns in economic development?
Which countries represent economic outliers and what can we learn from them?
How can countries be clustered based on their economic profiles?

        

Executive Summary

$17,577

Global Avg GDP per Capita

7.6%

Global Avg Unemployment

0.760

GDP ↔ Life Satisfaction (r)

Economic Clusters

132

Countries Analyzed

Economic Overview

This section examines the distribution of economic indicators across all countries and their relationships with well-being outcomes.

Economic Indicators Distribution and Regional Analysis

Income Classification

Income Category	Countries	Percentage	GDP Range
High Income	63	47.7%	$12,696+
Upper Middle Income	36	27.3%	$4,096 - $12,695
Lower Middle Income	29	22.0%	$1,046 - $4,095
Low Income	4	3.0%	< $1,045

Economic Correlations with Well-being

Analysis of how economic indicators correlate with various measures of citizen well-being and development.

Economic Correlations Analysis

Key Economic Relationships

Relationship	Correlation (r)	R²	Strength	Interpretation
GDP per Capita ↔ Life Satisfaction	0.760	0.578	Strong	Higher GDP strongly predicts life satisfaction
GDP per Capita ↔ Education Years	0.767	0.588	Strong	Economic development drives educational attainment
GDP per Capita ↔ Life Expectancy	0.736	0.542	Strong	Wealth enables better health outcomes
Unemployment ↔ Life Satisfaction	-0.174	0.030	Weak	Modest negative impact of unemployment

Economic Clustering Analysis

Countries grouped into 4 distinct economic clusters based on GDP per capita, unemployment rates, and well-being indicators.

Economic Clusters and Outlier Analysis

Economic Outliers

Countries with exceptional economic indicators that warrant special attention.

GDP per Capita - Top Performers

High GDP Outliers: Luxembourg, Norway, Singapore, Switzerland, United States

Key Insight: These countries represent different development models - resource-rich nations, financial centers, and innovation economies.

Unemployment Rate - Areas of Concern

High Unemployment Outliers: Bosnia and Herzegovina, Eswatini, Mozambique, North Macedonia, South Africa

Key Insight: These countries face significant employment challenges that may impact citizen well-being and social stability.

Regional Economic Analysis

GDP per Capita by Region

ANOVA Result: Significant differences between continents (p < 0.001)

Interpretation: Economic development varies significantly across global regions, reflecting historical, geographical, and policy differences.