So, the figures in this calculation are given in Purchasing Power Parity (PPP) dollars.
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We do need to adjust for purchasing power parity (PPP) or the difference in what things cost.
So if you think about GDP, emerging markets are on purchasing power parity 50% of global GDP today.
Germany, Japan and the U.S. had nearly identical incomes per capita (as measured by purchasing power parity) in the 1980s.
Actually, I have just proved conclusively in print that an American in Paris is sorely pressed on purchasing power parity.
The group also accounts for a quarter of the world's gross domestic product (GDP) in terms of purchasing power parity.
In 2008, GCC countries should post 6% growth--a modest slowdown but much better than estimated global growth rates of 3.7%, as measured by purchasing power parity.
According to the OECD, on a 2005 purchasing power parity basis, the combined GDP of China and India will soon surpass that of the G-7 countries.
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On the basis known as purchasing power parity, which tends to favour emerging countries, China and India combined will be larger than the entire developed world by 2060.
Moreover, he also has stated in various venues that in two decades the Chinese economy could, in purchasing power parity terms, end up twice the size of the American one.
The Chinese economy is set to become as large as that of the US by around 2016 when assessed in purchasing power parity terms, which factor in price differences between countries, it added.
Adjusted for variations in purchasing power parity, the ascent of emerging markets is even more impressive: the International Monetary Fund forecasts that the total GDP of emerging markets could overtake that of the developed economies in 2014.
Properly done Purchasing Power Parity (PPP) adjustments are very complicated, but if we judge by 2011 IMF figures than roughly speaking we should boost the nominal value of Russian wages by about 28% to capture their actual purchasing power.
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The Big Mac Index uses Purchasing Power Parity (PPP) in comparing the price of the ubiquitous Big Mac across countries relative to its price in the USA. PPP refers to the idea that exchange rates across two countries should be equal to the relative price of a basket of goods and services in both countries.
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Measuring at purchasing-power parity makes the gap in GDP and living standards look narrower.
They find that the parts of the burger that are traded internationally converge towards purchasing-power parity quite quickly.
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Economistics suggests a purchasing-power parity of 14.57 Chinese yuan to the dollar, compared with the current 8.31 yuan.
On the basis of purchasing-power parity (ie, relative prices) it does look undervalued.
By the standard measure of purchasing-power parity, which reflects currencies' relative buying power, all of South-East Asia's currencies are now undervalued.
Since the region accounted for half of world growth last year (measured on the basis of purchasing-power parity), this is disturbing.
On the World Bank's figures, Hong Kong in 2005 was the world's tenth-richest country by gross national income per person at purchasing-power parity.
In 2008 the World Bank rated it the third richest country in the world, in terms of GDP per head at purchasing-power parity.
OECD's 22 donor countries, measured in the same purchasing-power parity dollars.
On the OECD's calculations of purchasing-power parity (a measure that adjusts for relative prices), the franc is 42% overvalued against the euro and 44% against the dollar.
Based on population and GDP at purchasing-power parity the new G8 would be formed by Brazil, China, the European Union, India, Indonesia, Japan, Russia and the United States.
It is the world's biggest economic block: it accounts for more than a quarter of the world's GDP (at purchasing-power parity), compared with the Sinosphere's 15% and the Indosphere's 5.4%.
Floating exchange rates destabilise trade and investment by wrenching relative prices away from their fundamental values (that is, from the values that would put the corresponding exchange rates at purchasing-power parity).
In 1901, when Australia became an independent federation, it was, in terms of income per person at purchasing-power parity, the richest country on the planet, thanks to abundant minerals and innumerable sheep.
Most economists reckon that the best way to compare living standards is to take GDP per person measured at purchasing-power parity (PPP), which adjusts for differences in the cost of living in each country.
China currently has only 3% of the total vote, not much more than Belgium (with 2.2%), even though China's economy is seven times larger at market exchange rates and a lot bigger still at purchasing-power parity.
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