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PPP Int

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9000.00

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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 Lowest PPP Conversion Factor (Highest Purchasing Power) (2021 INT$):

Country
PPP Int
Bahrain0.19
Kuwait0.22
Oman0.23
Jordan0.27
Cuba0.32
Montenegro0.36
Liberia0.43
Panama0.44
Croatia0.44
El Salvador0.46

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

Country
PPP Int
Iran64529.24
Somalia9285.78
Vietnam7197.83
Lebanon6724.34
Indonesia4850.74
Guinea4131.97
Laos3071.62
Paraguay2688.25
Uzbekistan2613.32
Colombia1391.00

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.

Notes:
- Purchasing Power Parity (PPP) values are shown in local currency units (LCUs) required to equal one International dollar (INT).

Download Table Data

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Country
PPP Int
GDP Per Capita
Data Year
Iran64529.2418261.802022
Somalia9285.781711.002022
Vietnam7197.8313461.002022
Lebanon6724.3414330.502022
Indonesia4850.7414657.802022
Guinea4131.973188.102022
Laos3071.629387.402022
Paraguay2688.2515982.602022
Uzbekistan2613.329535.702022
Colombia1391.0020268.702022
Cambodia1347.855355.202022
Uganda1279.002693.102022
Madagascar1192.771774.702022
Mongolia1111.2214260.302022
DR Congo981.971337.802022
Tanzania886.123099.202022
South Korea831.9450330.502022
Iraq792.3210865.402022
Burundi739.19836.502022
Myanmar460.865019.702022
Chile443.4230208.802022
Republic of the Congo381.194335.102022
Rwanda356.412793.202022
Malawi353.391732.602022
Costa Rica342.7225237.102022
Gabon334.1516465.002022
Zimbabwe291.062607.902022
Central African Republic273.70973.202022
Chad267.961668.602022
Equatorial Guinea254.2517620.702022
Niger242.541505.502022
Ivory Coast237.136540.502022
Senegal236.854210.402022
Togo226.002601.802022
Cameroon221.744398.002022
Guinea Bissau220.862191.202022
Angola214.996976.002022
Mali206.352518.902022
Burkina Faso203.042549.902022
Benin200.354057.502022
Comoros180.953833.702022
Kazakhstan171.5830820.102022
Hungary164.1641740.902022
Armenia161.2118965.702022
Nigeria157.965862.202022
Sudan145.464217.402022
Iceland142.7669615.502022
Vanuatu113.283290.602022
Japan97.5745583.802022
Djibouti94.585893.202022
Yemen93.633437.402013
Guyana90.1542089.902022
Jamaica77.7111938.902022
Sri Lanka75.5514410.202022
Argentina67.2126530.302022
Haiti56.613306.202022
Algeria46.6213226.802022
Cape Verde45.468716.002022
Serbia44.5323914.202022
Pakistan44.486351.002022
Kenya42.915765.802022
Albania41.3818603.402022
Nepal34.174726.602022
Bangladesh31.367397.502022
Uruguay29.6728851.502022
Russia28.8036307.802022
Dominican Republic24.4122841.102022
Mozambique24.131477.302022
Kyrgyzstan23.255988.602022
India22.888400.402022
Bhutan20.5712795.402021
North Macedonia19.0020328.902022
Philippines18.8010136.602022
Afghanistan18.651673.102021
Gambia17.902496.502022
Ethiopia17.742812.502022
Mauritius16.8026979.102022
Sao Tome and Principe13.794061.802022
Czech Republic12.9349195.002022
Mauritania12.136295.802022
Nicaragua11.776877.102022
Thailand11.7220679.102022
Ukraine11.5712675.402022
Honduras11.046743.302022
Mexico10.3822298.202022
Norway8.88114929.502022
Sweden8.7565157.002022
Suriname8.1517773.502022
Maldives7.2125124.602022
Namibia7.1411531.302022
South Africa6.9515920.402022
Moldova6.8715719.202022
Solomon Islands6.772655.002022
Denmark6.4074897.002022
Seychelles6.3529771.702022
Zambia6.213975.602022
Eswatini6.1010699.502022
Lesotho6.002646.202022
Hong Kong5.5569072.302022
Eritrea5.471628.802017
Botswana5.2218329.802022
Trinidad and Tobago4.8227515.502022
Turkey4.7237445.202022
Egypt4.6815096.002022
Macau4.5661231.002022
China3.9921482.602022
Guatemala3.9210821.802022
Israel3.7149754.802022
Morocco3.669547.702022
Sierra Leone3.461930.902022
South Sudan3.271181.902015
Ghana2.826473.102022
Qatar2.80114049.202022
Venezuela2.6817402.302011
Brazil2.5817827.602022
Bolivia2.559737.702022
Papua New Guinea2.474432.802022
Tajikistan2.384886.702022
United Arab Emirates2.2388489.002022
Barbados2.2218210.102022
Antigua and Barbuda2.0426365.502022
Saint Lucia1.9717835.702022
Saudi Arabia1.9359279.902022
Poland1.8944134.602022
Peru1.8215052.502022
Romania1.7941259.502022
Turkmenistan1.7715628.502022
Dominica1.6713540.202022
Saint Kitts and Nevis1.6133981.802022
Samoa1.606089.602022
Malaysia1.5733525.302022
Grenada1.5317082.902022
Tonga1.496778.502021
New Zealand1.4652149.202022
Saint Vincent and the Grenadines1.4317212.402022
Australia1.4263216.102022
Tuvalu1.395423.002022
Libya1.3823382.702022
Curacao1.3427302.202022
Sint Maarten1.3049540.902022
Nauru1.2713021.402022
Belize1.2511189.902022
Bermuda1.2495868.802022
Canada1.2358347.702022
Aruba1.2248750.302022
British Virgin Islands1.072017
Switzerland1.0584649.902022
Kiribati1.042365.502022
Turks and Caicos Islands1.0224471.502022
United States1.0076329.602022
Cayman Islands0.9984279.602022
Georgia0.9620172.102022
Micronesia0.963854.902022
Tunisia0.9312483.602022
Belarus0.9222550.602022
Singapore0.89127606.802022
Marshall Islands0.887092.002022
Puerto Rico0.8740511.002022
Luxembourg0.84140616.402022
Palau0.8315572.702021
Finland0.8159470.102022
Fiji0.8114632.202022
Ireland0.78126837.302022
Bulgaria0.7733845.602022
Bahamas0.7740942.802022
Netherlands0.7670869.402022
Azerbaijan0.7417828.602022
Brunei0.7469297.902022
Germany0.7363521.902022
Austria0.7367874.902022
Belgium0.7265478.402022
France0.7055387.502022
Bosnia and Herzegovina0.7019990.802022
United Kingdom0.6854929.802022
San Marino0.6867983.002021
Italy0.6352804.002022
Spain0.6146331.702022
Cyprus0.5951322.702022
Estonia0.5846556.402022
Malta0.5855865.802022
Portugal0.5641862.702022
Palestine0.566759.002022
Slovenia0.5648302.502022
Slovakia0.5437457.202022
Greece0.5337075.102022
Latvia0.5239825.302022
Timor Leste0.514657.402022
Ecuador0.5012826.402022
Lithuania0.4948860.702022
El Salvador0.4611098.102022
Panama0.4439292.702022
Croatia0.4440240.002022
Liberia0.431570.502021
Montenegro0.3627027.502022
Cuba0.322011
Jordan0.2711209.902022
Oman0.2341738.202022
Kuwait0.2258349.202022
Bahrain0.1961248.202022
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