5 ms·
Real GDP (purchasing power parity)
- YZF 2y agoHere's another resource: https://fx.sauder.ubc.ca/PPP.php https://fx.sauder.ubc.ca/PPP.php Part of an overall really nice resource: https://fx.sauder.ubc.ca/ https://fx.sauder.ubc.ca/
- skybrian 2y agoNearly all other non-US currencies have a lower value, according to this metric. I’m wondering if this means the US dollar is overvalued? Alternatively, the US dollar is valued for reasons other than purchasing power.
- dosinga 2y agoThe actual value of a currency is not all that relevant. The Japanese Yen is worth less than the Indian Rupee, but the cost of living in India is a lot lower.
- skybrian 2y agoCurrency exchange rates matter for tourism, buying foreign goods, foreign investment, working in a different country, businesses that rely on international trade, and so on. International trade matters in just about every country, as we can see in countries suffering from trade sanctions.
- sudhirj 2y agoWhen talking about currencies being over or under valued, we're usually not referring to the value of 1 unit of each currency being equal, more the exchange rates themselves. See the Big Mac index for example, for a real life illustration. You can buy a Big Mac in the US for $X, and a Big Mac in India for INR Y, but $X doesn't necessarily buy you exactly INR Y in the market right now. Might buy you more or less, and if you're using the Big Mac as a standard you would say one of the currencies is over or under valued.
- gus_massa 2y agoDo they have a per capita version?
- blackeyeblitzar 2y agohttps://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)...
- oezi 2y agohttps://www.cia.gov/the-world-factbook/field/real-gdp-per-capita/country-comparison/ https://www.cia.gov/the-world-factbook/field/real-gdp-per-ca...
- transcriptase 2y agoThey do but it’s just a ranking of tax shelters and countries that manage their oil production properly.
- ajmurmann 2y agoThose countries are notoriously hard to rank properly but also easy to recognize and ignore (Ireland might be the one most people will fall for).
- protomolecule 2y ago[flagged]
- crubier 2y agoRussia has 40% larger GDP (PPP) than Italy according to these figures. Purchasing power parity includes the fact that Russia has a small purchasing power, which makes this figure larger than the real dollar GDP.
- protomolecule 2y agoYep, BigMac is real, 'real dollar GDP' is not.
- Wytwwww 2y ago> real dollar GDP' is not. So you are saying that PPP adjusted GDP is not real and that you believe that Italy actually has larger GDP than Russia (which it does if we measure it in actual non-adjusted money/$)?
- Wytwwww 2y agoWell.. it depends what you but with that money. If you only buy Russian goods (lol) then PPP makes sense. Foreign imports? Not so much. Of course Chinese cars and some goods presumably would be quite a bit cheaper than in Italy due to no tariffs.
- protomolecule 2y ago[flagged]
- Wytwwww 2y agoAbout what exactly? Anyway.. why aren't you on reddit instead? There must be some subreddit for people like you there.
- kleiba 2y agoOne thing seems apparent: the strategy of the West to try and isolate Russia in response of their attacks on Ukraine has failed.
- oezi 2y agoHow can you read this from a snapshot list of GDP at PPP?
- BenFranklin100 2y agoIn the short term at least. The Economist explored the topic recently: Vladimir Putin spends big—and sends Russia’s economy soaring https://www.economist.com/finance-and-economics/2024/08/11/vladimir-putin-spends-big-and-sends-russias-economy-soaring https://www.economist.com/finance-and-economics/2024/08/11/v...
- aswegs8 2y agohttps://archive.ph/uL3iW https://archive.ph/uL3iW
- cpursley 2y agoThe same Economist that was embarrassingly wrong in all their previous "predications" about that economy (you know, the one with their own space program, ton of natural resources, very low external and internal debt and neighbors/best buds with the worlds largest factory)?
- BenFranklin100 2y agoThe very same. Half of what you read in the Economist each week is insightful analysis you won’t find elsewhere; the other half is nonsense. The fun bit is figuring out which is which.
- Wytwwww 2y agoTo be fair they seem to be somewhat accurate and objective. The Russian economy has proved to be unexpectedly resilient. Western countries continued buying Russian oil/etc. while restricting the exports of goods and services which lead to a massive current account surplus in 2022. They also have enough reserves to run comparable deficits to their current one for at least several years. Of course having to raise interest rates to >20% while claiming that inflation is actually ~9% is not a good sign. Current account surplus is also going down and is pretty much where it was before the war. Funnily enough the Russian government seems to be "fighting" the central bank by giving out mortgages and loans at a >50-80% discount. Which would indicate that (hopefully) their are forced to chose between inflation going our of control or most of the economy (at least the faction not directly dependant on government contracts) griding to a halt.
- 77pt77 2y agoNow do per capita
- dartharva 2y agoIndia is 3rd on this list.. and 150th on the per capita list. ... damn
- johnisgood 2y agoYeah, it is there as well (for anyone wondering): https://www.cia.gov/the-world-factbook/countries/india/#economy https://www.cia.gov/the-world-factbook/countries/india/#econ...
- deleted 2y ago[deleted]
- transcriptase 2y agoYou ok Canada?
- swat535 2y agoNo, we're not.
- dtquad 2y agoPPP (Purchasing Power Parity) is something of very little use. The price we pay for food in developed countries include the additional food safety they don't get in India. The price we pay for housing include the additional quality of housing and location they don't get in Russia. On the less serious parts of the Internet it's only Indian and Russian nationalists who bring up GDP adjusted by PPP to cope. Less serious people reply by calling it "Poor People's Points".
- nicktikhonov 2y ago[flagged]
- ajmurmann 2y agoPPP IMO is very useful when comparing quality of life for example when considering moving. However, in that case you also want look at median PPP income, not even PPP GDP per capita and especially not total PPP GDP.
- dartharva 2y agoWhy the inflammatory jibe? PPP as a concept wasn't necessarily created by or for poor countries' nationalists.
- protomolecule 2y ago[flagged]
- golergka 2y agoCan confirm. I lived for a substantial amount of time in Russia, Israel and Argentina, and in a lot of other countries for about a month. Food price comparisons at sites like Numbeo don't take quality into account at all. May be they can be used to compare heavily pre-processed foods like Doritos, but “block of Parmesan”, “a cheap bottle of local dry white wine” or “1kg of beef” can mean radically different things I'm practice.
- FooBarBizBazz 2y ago
- alapshin 2y agoThis is ranking by GDP (PPP). According to Worldbank https://www.worldbank.org/en/programs/icp/brief/VC_Uses https://www.worldbank.org/en/programs/icp/brief/VC_Uses and OECD https://www.oecd.org/en/data/insights/data-explainers/2024/06/purchasing-power-parities---frequently-asked-questions-faqs.html#FAQ3 https://www.oecd.org/en/data/insights/data-explainers/2024/0... this metric is a poor choice when trying to establish some sort of strict country ranking.
- nolok 2y agoWhich doesn't surprise me. In very general term, you either use GPD to compare countries' "economic strenght", or GDP per capita (PPP) to compare how it translate for their potential for each citizen. I feel like GDP per capita (non PPP) or GDP (PPP) are not very useful unless you want to make the numbers say whatever your story claims.
- eigenspace 2y agoIt really depends. Economic comparisons are more complicated than can really be distilled down to one number that'd work for ranking all countries. GDP comparisons in USD work really well when a large percentage of a country's economic activity is anchored to USD-denominated trade. For some random heterogenous examples, if you want to look at Canada, China, or middle-eastern petrostates, comparing GDP in terms of the US dollar is probably your best metric, because their economies really are highly sensitive to changes in their currency's exchange rate to the USD, either due to the things they are reliant on buying from the USA (Canada), or the things they are totally reliant on selling to international markets (China, middle east petrostates) On the other hand, for places like the European Economic Area, comparisons in terms of USD are quite a bit harder to justify, and this is where PPP can come in as (highly imperfect) alternative. The reason is that while they obviously are plugged into the global economy, they also do a much higher percentage of their economic activity in their own little economic bubble that's not as sensitive to their exchange rate to the USD. For example, European countries have had highly stagnant GDP in USD terms since 2008, and that does strongly affect things like multinational corporations, tech purchases, and energy prices, we're not really seeing any of the indicators on everyday life you'd expect from such a longterm stagnation, and that's because their economies really are growing, it's just that their currency is also losing ground against the USD even as they grow. ____________ TLDR: I'd compare Canada versus the USA in terms of USD, but I'd compare France versus the USA in terms of PPP. This decision really needs to be done on a per-comparison basis, and neither is really great, but for some comparisons one is much more appropriate than the other.
- r3trohack3r 2y agoCuriosity question, anybody know why this is this on cia.gov?
- GuB-42 2y agohttps://en.wikipedia.org/wiki/The_World_Factbook https://en.wikipedia.org/wiki/The_World_Factbook The relevant part: > The World Factbook is prepared by the CIA for the use of U.S. government officials, and its style, format, coverage, and content are primarily designed to meet their requirements.[3] It is also frequently used as a resource for academic research papers and news articles.[4] As a work of the U.S. government, it is in the public domain in the United States.[5]
- dilyevsky 2y agoA lot of “intelligence” is just systematizing and analyzing open data. It ain’t all about cloak and dagger
- spencerchubb 2y agoIt's a lot more fun to picture the cia as people wearing disguises to infiltrate foreign governments
- halJordan 2y agoYou lost most of the people here at calling them people
- devmor 2y agoIt is in the interest of the CIA to be an authority on comparisons between countries, especially when it comes to metrics that are of interest to economics.
- oytis 2y agoObligatory comment that total GDP PPP is a useless metric. GDP PPP per capita might be used as one of quality of life indicators