Published on 22 Mar 2024 on Insider Monkey via Yahoo Finance

30 Countries With the Highest Purchasing Power Parity in the World

In this article, we list and discuss the 30 Countries With The Highest Purchasing Power Parity in the World. If you would like to skip our detailed discussion of the topic, you can go directly to 10 Countries With The Highest Purchasing Power Parity in the World.

The world population is growing fast, and so is the global economy. Today, the global economy stands at $104.48 trillion, with the leading countries having Gross Domestic Product (GDP) figures as high as $27.97 trillion. But do these leading countries hold the same rankings and figures when their economic wealth is measured by purchasing power parity (PPP)?

Purchasing Power Parity (PPP) is a macroeconomic concept used to compare the relative value of currencies between different countries. When we say value, we mean how much purchasing a currency can do compared to different countries. So, to find that out, economists apply PPP, which is the exchange rate at which one country's currency would be converted into another to purchase an identical basket of goods and services. The PPP metric is usually used to measure economic productivity and standards of living between countries.