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SORTING COUNTRIES into wealthy and poor may be tough. Measures resembling GDP are affected by inhabitants dimension (extra individuals typically imply extra output). However adjusting for inhabitants alone will not be sufficient. Greenback earnings per particular person doesn’t account for variations in costs between nations (a Big Mac, for instance, will set you again extra in some locations than in others, even after changing into {dollars}). Nor does it account for productiveness (total output per hour labored).
To get a fuller image, The Economist subsequently ranks nations by three measures: greenback earnings per particular person, earnings adjusted for native costs (generally known as purchasing-power parity, or PPP) and earnings per hour labored. See the place every nation ranks under.
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