The latest data released by the International Comparison Program (ICP) shows some interesting findings.
- Six of the world’s twelve largest economies were in the middle income category (based on the World Bank’s definition). When combined, the twelve largest economies account for two-thirds of the world economy, and 59% of the world population.
- Middle income economies’ share of global GDP is 48% when using PPPs and 32% when using exchange rates.
- Low income economies, as a share of world GDP, accounted for only 1.5% of the global economy, but nearly 11% of the world population.
- Roughly 28% of the world’s population lives in economies with GDP per capita expenditures above the $13,460 world average and 72% are below that average.
Which are the largest economies?
- The 6 largest middle income economies account for 32.3% of world GDP: China, India, Russia, Brazil, Indonesia and Mexico.
- The 6 largest high income economies account for 32.9% of world GDP: United States, Japan, Germany, France, United Kingdom and Italy.
- China and India make up two-thirds of the Asia and the Pacific economy, excluding Japan and South Korea, which are part of the OECD comparison.
- Russia accounts for more than 70% of the CIS, and Brazil for 56% of Latin America.
- South Africa, Egypt, and Nigeria account for about half of the African economy.
Which countries are the most expensive?
The Price Level Index (PLI) is the ratio of a Purchasing Power Parity (PPP) to a corresponding exchange rate. An index over 100 means prices are higher on average than in the world, and one less than 100 means prices are relatively lower.
- The most expensive economies in GDP terms are Switzerland, Norway, Bermuda, Australia and Denmark, with indices ranging from 210 to 185.
- The United States ranked 25h in the world, lower than most other high-income economies, including France, Germany, Japan, and the United Kingdom.
- The cheapest economies are Egypt, Pakistan, Myanmar, Ethiopia and Lao People's Democratic Republic, with indices ranging from 35 to 40.
Which countries are the richest in per capita terms?
Eleven economies have more than $50,000 per capita, while they collectively account for less than 0.6% of the world’s population.The economies with the highest GDP per capita are:
- Qatar
- Macao, SAR, China
- Luxembourg
- Kuwait
- Brunei
Which countries are the poorest in per capita terms?
The economies that have a GDP per capita of less than $1,000:
- Malawi
- Mozambique
- Central African Republic
- Niger
- Burundi
- Congo, Democratic Republic
- Comoros
- Liberia
Which countries devote the most spending that directly benefit individuals?
A general measure of material well-being of each economy’s population is measured better by actual individual consumption per capita – a measure of all expenditures in the economy that directly benefit individuals – rather than by GDP per capita. By this measure, the five economies with highest actual individual consumption per capita are:
- Bermuda
- United States
- Cayman Islands
- Hong Kong, SAR, China
- Luxembourg
Investment Expenditure
- At 27%, China now has the largest share of the world’s expenditure for investment (gross fixed capital formation); followed by the United States at 13%.
- India, Japan and Indonesia follow with 7%, 4%, and 3%, respectively.
- China and India account for about 80% of investment expenditures in the Asia and the Pacific region. Russia accounts for 77% of CIS, Brazil for 61% of Latin America and Saudi Arabia for 40% of Western Asia.
