GDP Purchasing Power Parity 2014

[Indos]

According to IMF

2014 data

Indonesia has already been ahead of France and place at number 8

List of countries by GDP (PPP) - Wikipedia, the free encyclopedia

 

[Chinese-Dragon]

Don't say 'we' say 'Chinese-Dragon'

Anyway, please don't act as expert where you know nothing. And also don't expect people to believe a internet troll over the commissioner of the National Bureau of Statistics of China.

Like I said, learn to read.

He said the exact same thing I said: "For various reasons, we think this round of PPP research may underestimate China's price level, and overestimate China's total GDP, so we don't recognize this data."

As for internet troll, you're the troll, as evidenced by your negative ratings.

 

[cirr]

PPP sucks。

And China's PPP was inaccurate as it could be，for the figure was based on a survey of 30 big and mostly coastal (read: rich) cities.

 

[Indos]

Indonesia is no 10 on this chart...ahead of malysia.indonesia is a fairly poor country and malysia is fairly rich....

World Bank Data

Manufacturing, value added (current US$)
Manufacturing refers to industries belonging to ISIC divisions 15-37. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3. Data are in current U.S. dollars.

Manufacturing, value added (current US$) | Data | Table

Country name2013

China 2,941,337,347,299

United States 1,966,495,000,000

Japan 1,073,277,493,560

Germany 745,240,864,784

Korea, Rep. 370,393,593,514

Italy 287,482,387,812

Brazil 250,149,717,252

France 285,590,357,502

India 223,138,049,899

United Kingdom 231,189,798,427

Russian Federation 267,591,226,274

Indonesia 205,768,427,070

Mexico 215,689,694,253

Canada 162,080,209,810

Turkey 126,169,232,482

Thailand 127,569,680,401

Switzerland 123,855,109,928

Australia 104,170,239,125

Netherlands 93,050,714,496

Sweden 84,367,422,538

Poland 88,003,543,631

Argentina 79,058,057,088

Belgium 66,793,184,246

Austria 70,553,053,432

Malaysia 74,895,426,703

Saudi Arabia 75,536,266,667

Venezuela, RB 50,891,378,335

Singapore 52,577,079,837

 

[Archie]

why PPP is important

well because cost of living in different countries vary

when I was working in India, My last salary was Rs 14.80 Lacs , that's nearly 25000 USD, I had a Chevy Cruze, and was living in my parents house, I was also able to save o
that is upper middle class in India

for the last 2 year, I am living in US,
my salary is around 75K USD
but I share an apartment with 2 South Korean Idiots, and Drive a Ford Taurus

and I feel that My lifestyle was better in India

 

[Chinese-Dragon]

why PPP is important

well because cost of living in different countries vary

when I was working in India, My last salary was Rs 14.80 Lacs , that's nearly 25000 USD, I had a Chevy Cruze, and was living in my parents house, I was also able to save o
that is upper middle class in India

for the last 2 year, I am living in US,
my salary is around 75K USD
but I share an apartment with 2 South Korean Idiots, and Drive a Ford Taurus

and I feel that My lifestyle was better in India

But that doesn't translate to economic power.

When you buy the Rafale, can you buy it with PPP? No you use nominal currency to buy it.

In terms of per capita, PPP is useful for determining domestic living standards. But for the aggregate economic strength of a nation, PPP doesn't work. Since when you buy things overseas you use nominal currency.

 

[Raphael]

PPP is irrelevant and meaningless. China is still second to the USA in economic size.

When you buy the Rafale, can you buy it with PPP? No you use nominal currency to buy it.

Forget Rafales, the most important commodity in the world, oil, is bought and sold in USD. What would the Saudis say if one attempted to buy a barrel of oil for a handful of rupees weighted against the cost of consumer goods/services in India? They would tell you to get lost

 

[terranMarine]

PPP is irrelevant and meaningless. China is still second to the USA in economic size.



Forget Rafales, the most important commodity in the world, oil, is bought and sold in USD. What would the Saudis say if one attempted to buy a barrel of oil for a handful of rupees weighted against the cost of consumer goods/services in India? They would tell you to get lost

The Saudis would hang the Indian negotiators

 

[tranquilium]

Indonesia is no 10 on this chart...ahead of malysia.indonesia is a fairly poor country and malysia is fairly rich....

Which is exactly why Indonesia would be higher with PPP instead of nominal. PPP tends to favor poorer countries because living expenses is lower, hence more purchasing power for the same nominal value.

You are the first Chinese to refer to PPP. Most Chinese ignore PPP.

The PPP vs GDP validity is a bit more complicated than most people go with. This is because when we discuss GDP, we are typically measuring how well the country is doing and in general, with more GDP, the country did better (this, of course, is a gross simplification, but you get the idea) As a result, if we are talking about products that is mostly domestically produced, PPP is actually a better measurement than nominal. On the other hand, if certain products are heavily reliant on import, then nominal tends to be better. (This would involving other complicated factors in the consideration too.)

Take India for example, India is a large producer of rice and it is one of India's main export. As a result, when measuring rice production for India, PPP is more appropriate than nominal. In comparison, India is a larger importer of electronics. Hence for electronics, nominal is a better measurement.
India
Of course, purchasing power itself is kinda iffy to measure considering larger countries naturally has uneven distribution of purchasing power across its territory.

This gets increasingly skewed for low volume/high value sectors. For example, military hardware purchase heavily favors the seller to the point that if the country does not product certain piece of critical military hardware, it will routinely pay several times of the production cost for it.

 

[scholseys]

Only Indians get into dick measuring using the PPP, the OP as a Chinese should commit suicide.

 

[Providence]

PPP measure of GDP has some fundamental flaws. Educated people should try to appreciate it and not go for chest beating with the PPP numbers. Having said that, it does indicate to some extent what and which products people can purchase in the country without shelling out a bomb.

 

[Edison Chen]

PPP has its reasonability. The exchange rate is volatile in short-term, which could be easily affected by international speculation and government intervention, so from the international comparison of market exchange rates, it could be unstable and even misleading. The economy of developing countries will usually be underestimated comparing to higher income countries.

It also has limitations. It reflects the real living standard, not the overall strength of a country. According to the consensus, GDP per capital based on PPP is reasonable, because it can truly reflect the residents' expenditure on actual quantity of goods and services. It could be misleading to compare the power of a country using PPP, it's meaningless. Also the PPP reflects domestic purchasing power, not the international purchasing power, for example some products and services like medical care can only be consumed locally. Market exchange rates is vulnerable to short-term shocks and often deviate from the influence of the PPP exchange rates, and in the long run, the market exchange rate to the PPP exchange rate convergence speed is slow, and foreign purchasing power of a country depends mainly on market exchange rates, so PPP shouldn't be compared across the world as the competitiveness of each country.

 

[Providence]

It also has limitations. It reflects the real living standard, not the overall strength of a country. According to the consensus, GDP per capital based on PPP is reasonable, because it can truly reflect the residents' expenditure on actual quantity of goods and services. It could be misleading to compare the power of a country using PPP, it's meaningless. Also the PPP reflects domestic purchasing power, not the international purchasing power, for example some products and services like medical care can only be consumed locally. Market exchange rates is vulnerable to short-term shocks and often deviate from the influence of the PPP exchange rates, and in the long run, the market exchange rate to the PPP exchange rate convergence speed is slow, and foreign purchasing power of a country depends mainly on market exchange rates, so PPP shouldn't be compared across the world as the competitiveness of each country.

Bolded part. You brother captured the essence.in a single line. BRAVO

 

[Nike]

Only Indians get into dick measuring using the PPP, the OP as a Chinese should commit suicide.

So how much manufacturing capability and value of Bangladesh?

 

[scholseys]

So how much manufacturing capability and value of Bangladesh?

Google it.

why PPP is important

well because cost of living in different countries vary

when I was working in India, My last salary was Rs 14.80 Lacs , that's nearly 25000 USD, I had a Chevy Cruze, and was living in my parents house, I was also able to save o
that is upper middle class in India

for the last 2 year, I am living in US,
my salary is around 75K USD
but I share an apartment with 2 South Korean Idiots, and Drive a Ford Taurus

and I feel that My lifestyle was better in India

You are one cheap Baniya.