Submitted by highcharts t3_111y1po in dataisbeautiful
ferrel_hadley t1_j8i3578 wrote
Reply to comment by ismaelsow in [OC] Top 10 largest economies by average values of GDP by highcharts
They are taking the average GDP adjusted for Purchasing Power Parity over 5 years. The problem is I am not sure PPP works for total GDP, it is meant to reflect the differences in consumer income i.e. how far a consumers wages will go. So someone in the US on say $50 000 may only be able to buy the same amount of goods as someone in country x who is on $40 000 because consumer prices are lower.
But it relies on a basket of consumer goods, so I really don't think it works scaling to GDP as a large part of GDP calculations are not in a sample consumer basket and if you exclude things like property (which is insanely expensive in China) you can end up with wild distortions.
droolingdonkey t1_j8i4q2q wrote
Haha then this chart is even more false. My money as a scandinavian would go longer then the avarage Russian. Holy smokes what a shit measurement.
svn380 t1_j8w96p5 wrote
Are you sure they're using PPP?
I didn't see that info and was wondering....
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