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Purchasing Power Parity by Country 2024

Purchasing Power Parity (PPP) is a monetary conversion rate used to enable country-to-country comparisons of economic indicators including Gross Domestic Product (GDP), Gross National Income (GNI), GDP per capita, and GNI per capita. Purchasing Power Parity compares the prices of roughly 1,000 common products in each nation (the most famous example being the McDonald's Big Mac), then determines the number by which one country's money would need to be multiplied in order to purchase the same goods and services in another country (usually the US). This number is the country's PPP conversion factor, or exchange rate.

For example, if a Big Mac costs 12.00 in a country's local currency (pesos, rubles, etc.) and $5 in the US, that country's PPP exchange rate is 12/5, or 2.4, which means that a single unit of that country's currency would need to be multiplied by 2.4 to equal one US dollar. An alternate way to express this rate would be that a US dollar is worth 2.4 of that country's currency.

The purpose of the Purchasing Power Parity exchange rate is to convert each country's local currency into a common baseline currency—usually the US dollar or the International dollar, a fictional currency specifically designed for such a purpose. Thus, economic performance can be compared using a single common currency rather than dozens of national currencies whose market exchange rates can change rapidly.

PPP conversion factor is an inverse value, meaning a higher PPP such as Pakistan's (41.95) represents less purchasing power than does a low PPP such as Luxembourg's (0.85). As such, a numerically lower PPP is generally considered preferable. However, PPP by itself offers little insight into a country's economic health and is very rarely considered on its own. Rather, it is most often used as a tool for calculating other economic indicators, such as GDP or GNI.

Top 10 Countries with the Highest PPP Conversion Factor (Lowest Purchasing Power) (2021 INT$):

Country
PPP Int
Iran$64,529
Somalia$9,286
Vietnam$7,198
Lebanon$6,724
Indonesia$4,851
Guinea$4,132
Laos$3,072
Paraguay$2,688
Uzbekistan$2,613
Colombia$1,391

Advantages and disadvantages of Purchasing Power Parity (PPP)

The major advantage PPP holds over the standard market exchange rate is relative stability. While the market exchange rate for currency can be quite volatile, PPP fluctuates much less over time, making it preferable in many cases. PPP also does a better job of accounting for the costs of products and services that are typically not traded internationally, such as concert tickets, a five-mile ride in a taxi, or a wedding planner. These purchases tend to cost less in low-income countries than in high-income countries, and failing to account for them could result in an inaccurate calculation of a country's purchasing power, cost of living, and quality of life.

On the downside, PPP is much more logistically challenging to measure than a simple market-based exchange rate. It also involves a significant amount of educated estimation, especially in the time between price surveys or for countries in which certain prices are unavailable or untracked. As a result, the accuracy of PPP can drift over time, until updated prices are incorporated.

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Country
PPP Int
GDP Per Capita
Data Year
Iran$64,52918261.82022
Somalia$9,28617112022
Vietnam$7,198134612022
Lebanon$6,72414330.52022
Indonesia$4,85114657.82022
Guinea$4,1323188.12022
Laos$3,0729387.42022
Paraguay$2,68815982.62022
Uzbekistan$2,6139535.72022
Colombia$1,39120268.72022
Cambodia$1,3485355.22022
Uganda$1,2792693.12022
Madagascar$1,1931774.72022
Mongolia$1,11114260.32022
DR Congo$9821337.82022
Tanzania$8863099.22022
South Korea$83250330.52022
Iraq$79210865.42022
Burundi$739836.52022
Myanmar$4615019.72022
Chile$44330208.82022
Republic of the Congo$3814335.12022
Rwanda$3562793.22022
Malawi$3531732.62022
Costa Rica$34325237.12022
Gabon$334164652022
Zimbabwe$2912607.92022
Central African Republic$274973.22022
Chad$2681668.62022
Equatorial Guinea$25417620.72022
Niger$2431505.52022
Ivory Coast$2376540.52022
Senegal$2374210.42022
Togo$2262601.82022
Cameroon$22243982022
Guinea Bissau$2212191.22022
Angola$21569762022
Mali$2062518.92022
Burkina Faso$2032549.92022
Benin$2004057.52022
Comoros$1813833.72022
Kazakhstan$17230820.12022
Hungary$16441740.92022
Armenia$16118965.72022
Nigeria$1585862.22022
Sudan$1454217.42022
Iceland$14369615.52022
Vanuatu$1133290.62022
Japan$9845583.82022
Djibouti$955893.22022
Yemen$943437.42013
Guyana$9042089.92022
Jamaica$7811938.92022
Sri Lanka$7614410.22022
Argentina$6726530.32022
Haiti$573306.22022
Algeria$4713226.82022
Cape Verde$4587162022
Serbia$4523914.22022
Pakistan$4463512022
Kenya$435765.82022
Albania$4118603.42022
Nepal$344726.62022
Bangladesh$317397.52022
Uruguay$3028851.52022
Russia$2936307.82022
Dominican Republic$2422841.12022
Mozambique$241477.32022
Kyrgyzstan$235988.62022
India$238400.42022
Bhutan$2112795.42021
North Macedonia$1920328.92022
Philippines$1910136.62022
Afghanistan$191673.12021
Gambia$182496.52022
Ethiopia$182812.52022
Mauritius$1726979.12022
Sao Tome and Principe$144061.82022
Czech Republic$13491952022
Mauritania$126295.82022
Nicaragua$126877.12022
Thailand$1220679.12022
Ukraine$1212675.42022
Honduras$116743.32022
Mexico$1022298.22022
Norway$9114929.52022
Sweden$9651572022
Suriname$817773.52022
Maldives$725124.62022
Namibia$711531.32022
South Africa$715920.42022
Moldova$715719.22022
Solomon Islands$726552022
Denmark$6748972022
Seychelles$629771.72022
Zambia$63975.62022
Eswatini$610699.52022
Lesotho$62646.22022
Hong Kong$669072.32022
Eritrea$51628.82017
Botswana$518329.82022
Trinidad and Tobago$527515.52022
Turkey$537445.22022
Egypt$5150962022
Macau$5612312022
China$421482.62022
Guatemala$410821.82022
Israel$449754.82022
Morocco$49547.72022
Sierra Leone$31930.92022
South Sudan$31181.92015
Ghana$36473.12022
Qatar$3114049.22022
Venezuela$317402.32011
Brazil$317827.62022
Bolivia$39737.72022
Papua New Guinea$24432.82022
Tajikistan$24886.72022
United Arab Emirates$2884892022
Barbados$218210.12022
Antigua and Barbuda$226365.52022
Saint Lucia$217835.72022
Saudi Arabia$259279.92022
Poland$244134.62022
Peru$215052.52022
Romania$241259.52022
Turkmenistan$215628.52022
Dominica$213540.22022
Saint Kitts and Nevis$233981.82022
Samoa$26089.62022
Malaysia$233525.32022
Grenada$217082.92022
Tonga$16778.52021
New Zealand$152149.22022
Saint Vincent and the Grenadines$117212.42022
Australia$163216.12022
Tuvalu$154232022
Libya$123382.72022
Curacao$127302.22022
Sint Maarten$149540.92022
Nauru$113021.42022
Belize$111189.92022
Bermuda$195868.82022
Canada$158347.72022
Aruba$148750.32022
British Virgin Islands$12017
Switzerland$184649.92022
Kiribati$12365.52022
Turks and Caicos Islands$124471.52022
United States$176329.62022
Cayman Islands$184279.62022
Georgia$120172.12022
Micronesia$13854.92022
Tunisia$112483.62022
Belarus$122550.62022
Singapore$1127606.82022
Marshall Islands$170922022
Puerto Rico$1405112022
Luxembourg$1140616.42022
Palau$115572.72021
Finland$159470.12022
Fiji$114632.22022
Ireland$1126837.32022
Bulgaria$133845.62022
Bahamas$140942.82022
Netherlands$170869.42022
Azerbaijan$117828.62022
Brunei$169297.92022
Germany$163521.92022
Austria$167874.92022
Belgium$165478.42022
France$155387.52022
Bosnia and Herzegovina$119990.82022
United Kingdom$154929.82022
San Marino$1679832021
Italy$1528042022
Spain$146331.72022
Cyprus$151322.72022
Estonia$146556.42022
Malta$155865.82022
Portugal$141862.72022
Palestine$167592022
Slovenia$148302.52022
Slovakia$137457.22022
Greece$137075.12022
Latvia$139825.32022
Timor Leste$14657.42022
Ecuador$112826.42022
Lithuania$048860.72022
El Salvador$011098.12022
Panama$039292.72022
Croatia$0402402022
Liberia$01570.52021
Montenegro$027027.52022
Cuba$02011
Jordan$011209.92022
Oman$041738.22022
Kuwait$058349.22022
Bahrain$061248.22022
showing: 199 rows

Which country has the highest purchasing power parity?

At 39,001.99, the country with the Highest PPP, or the lowest purchasing power, is Iran.

Frequently Asked Questions

Sources