By using this site, you agree to our Privacy Policy and our Terms of Use. Close

I can't read your list...

However the list in American Dollars does not seem to adjust for PPP or Purchasing Power Parity.

Which is actualy where those "costs" you talk about are factored in... and why the currenies are rebalanced vs the dollar.

The two lists are incongruent because the two lists are measuring two different things.

One is measuring GDP... and the other is measuiring GDP adjusted for Purchasing Power Parity.


If you look closer at the two lists you provided, you will note that not all GDPs fall when changed to International Dollars.  Bahrain and a number of other countries get higher numbers.

The "costs of things" you talk about are what PPP is measuring.  The International Dollar could be based on the Euro, but the numbers still wouldn't change.  The US would still be where it was.

Things in the US are just cheaper then Europe by in large... hence why other rich nations "fall" when converted to International Dollars.

Other nations can afford less with the money they earn due to local PPP.