Armstrong
RETIRED TTA
- Joined
- Feb 2, 2012
- Messages
- 19,390
- Reaction score
- 94
- Country
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That is in PPP, which takes account of the difference in the values of the prices of goods between countries. For example, if a kg of rice is cheaper in Pakistan than in BD, then if both countries had USD 1,000 per capita income, Pakistanis would be able to buy more rice for the same dollar cost.
With BD at 1044 and Pakistan at around 1300, then the day may not be far away when BD surpasses Pakistan. The current date of this happening will be around 2021 if the growth rates of both countries happen as predicted.
Isn't the Purchasing Power Parity (PPP) method a better indicator as opposed to Nominal Values which are muddied by the effects of Inflation & Systematic Risk ?