Wealthier nations have stronger currencies
Comparing US dollar per domestic currency (End-of-period (EoP)) with Services, value added (constant 2015 US$), per capita across 168 countries, 2022–2025.
- Rank correlation
- +0.59
- Holding size constant
- +0.45
- Countries compared
- 168
- Period
- 2022–2025
What might link these
The relationship between services value added per capita and the strength of a country's currency might be linked through economic stability and investment attractiveness. A careful reader should consider that trade balances could be a confounder, as countries with trade surpluses may see their currencies appreciate. The correlation persists even after controlling for population and GDP, suggesting a more nuanced relationship.
Why this is not proof of anything
This is a correlation across countries, not an experiment. It cannot show that either indicator causes the other, and both may simply follow a third thing. This correlation could mislead by implying a direct causal link between service sector growth and currency strength, when in fact many other economic factors are likely at play.
The second figure above repeats the measurement with national population and income held constant. It is the more conservative number: a relationship that largely disappears there was mostly telling you that larger, richer countries have more of most things.
How this was measured
Both indicators were ranked across every country reporting each, and the two rankings compared — ranks rather than raw values, because a handful of very large countries can otherwise manufacture a relationship on their own. The calculation is arithmetic over figures already published on this site; the commentary above is drafted from the two indicator names and the resulting coefficients.