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Purchasing power parity (PPP) is a theory of long-term equilibrium exchange rates based on relative price levels of two countries.
In its "absolute" version, the purchasing power of different currencies is equalized for a given basket of goods. In the "relative" version, the difference in the rate of change in prices at home and abroad—the difference in the inflation rates—is equal to the percentage depreciation or appreciation of the exchange rate.
Deviations from the theory imply differences in purchasing power of a "basket of goods" across countries, which means that for the purposes of many international comparisons, countries' GDPs or other national income statistics need to be "PPP adjusted" and converted into common units.
Source: Wikipedia - http://en.wikipedia.org/wiki/Purchasing_power_parity
| Ranking/231 |
Country |
US$ |
| 3 |
Luxemburg |
$ 81,800 |
| 5 |
Norway |
$ 59,100 |
| 10 |
United States |
$ 47,400 |
| 16 |
Switzerland |
$ 42,900 |
| 18 |
Netherlands |
$ 40,500 |
| 20 |
Austria |
$ 40,350 |
| 23 |
Sweden |
$ 39,000 |
| 25 |
Belgium |
$ 37,900 |
| 27 |
Ireland |
$ 37,600 |
| 29 |
Denmark |
$ 36,700 |
| 31 |
Germany |
$ 35,900 |
| 35 |
Finland |
$ 35,350 |
| 36 |
United Kingdom |
$ 35,100 |
| 39 |
France |
$ 33,350 |
| 41 |
European Union |
$ 32,900 |
| 43 |
Italy |
$ 35,700 |
| 45 |
Greece |
$ 35,200 |
| 47 |
Spain |
$ 29,500 |
| 50 |
Slovenia |
$ 28,400 |
| 53 |
Czech Republic |
$ 25,600 |
| 56 |
Portugal |
$ 23,000 |
| 57 |
Slovakia |
$ 22,200 |
| 63 |
Hungary |
$ 19,000 |
| 64 |
Estonia |
$ 19,000 |
| 35 |
Poland |
$ 18,800 |
| 67 |
Croatia |
$ 17,500 |
| 70 |
Lithuania |
$ 15,900 |
| 71 |
Russia |
$ 15,900 |
| 82 |
Latvia |
$ 14,350 |
| 87 |
Belarus |
$ 13,400 |
| 89 |
Bulgaria |
$ 12,800 |
| 94 |
Turkey |
$ 12,350 |
| 96 |
Romania |
$ 11,500 |
| 100 |
World |
$ 11,100 |
| 102 |
Serbia |
$ 11,000 |
| 109 |
Montenegro |
$ 9,900 |
| 114 |
Macedonia |
$ 9,400 |
| 128 |
Albania |
$ 7,400 |
| 133 |
Ukraine |
$ 6,700 |
| 134 |
Bosnia and Herzegovina |
$ 6,600 |
| 174 |
Kosovo (2009 est.) |
$ 2,500 |
Source: dashconsult GbR, CIA World Fact book |
