S. Korea, Taiwan expected to top Japan in GDP per capita in 2027, 2028

[xuxu1457]

Many people say Taiwan’s GDP includes the part that is generated by Taiwanese enterprises located in mainland China. Is this true?
Taiwanese GDP measures abide by the IMF standard, i.e. includes the profits of Taiwanese companies (defined as companies headquartered in Taiwan), even if most of their business operations are abroad. This is because these profits are considered the productive output of the Taiwanese companies, regardless whether these profits have been sent back to Taiwan.

It is however false that the revenues/gross outputs of Taiwanese companies from overseas operation are accounted for in Taiwanese GDP - they are not. For example, if they payout wages to local employees, those are accounted in the local GDP, but not in the Taiwanese GDP.
This is also because the per capita salary in Taipei is much lower than that in Beijing and Shanghai, and the per capita salary has not changed much in the past 20 years.

The problem in South Korea and Taiwan is that big enterprises are rich and ordinary people are difficult. Taiwan's TSMC (most share belong to wall street）contributes US $60 billion a year to GDP, but it only employs 50, 000 people. sumsung account 20% of southKorea GDP， but Most of the shares and profits are owned by Wall Street
Their main economic lifelines are not their own.

U.S. companies lobby for pardon for imprisoned Samsung chip tycoon - Marketplace

The American Chamber of Commerce seeks release of Jay Y. Lee, convicted of bribery. His company is mulling a big U.S. investment.

www.marketplace.org

 

[Mista]

when is GDP per capita "usually" adjusted for PPP?

And now you're even nitpicking on whether it's 'usually' lmao. The media usually cites GDP per capita in real terms to better gauge the change in standard of living. Otherwise you will have GDP per capita for Turkey slashed by half just because the Lira crashed.

‘From third world to first’: Lee Kuan Yew’s legacy in charts

Five charts that show how Lee Kuan Yew led his country into an economic success story

www.ft.com

The Singapore exception

To continue to flourish in its second half-century, South-East Asia’s miracle city-state will need to change its ways, argues Simon Long

www.economist.com

After half a century of success, the Asian tigers must reinvent themselves

They must move from growth-obsessed developmental states, to growth-friendly welfare states, say Simon Rabinovitch and Simon Cox

www.economist.com

The dragon takes wing

New data suggest the Chinese economy is bigger than previously thought

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The prospects for developing countries are not what they once were

Twenty years on, growth in the BRICs has slowed

www.economist.com

Spanish now richer than Italians, IMF data show

Decade of stagnation leaves Rome trailing in terms of output per head

www.ft.com

EU economies have converged since last elections

Eastern states catch up and periphery recovers but poorer regions struggle

www.ft.com

Human Development Index | Human Development Reports

hdr.undp.org

 

[Suika]

Basic economics enable rising ROK products to under cut price of Japanese products. Once ROK GDP per capita is equal to Japan, then their products won't be able to undercut in cost any more. So things will reach an equilibrium. Besides, if the cost to ROK getting a slightly higher GDP per capita than Japan is maintaining a fertility rate of less than 1.0, then it probably isn't worth it. Too much work hours and too much emphasis on K-pop.

 

[REhorror]

Meh, GDP means nothing.
Though, indeed Japan has declined a lot, due to their having to pay for their american masters's occupation.

 

[FairAndUnbiased]

And now you're even nitpicking on whether it's 'usually' lmao. The media usually cites GDP per capita in real terms to better gauge the change in standard of living. Otherwise you will have GDP per capita for Turkey slashed by half just because the Lira crashed.

yes, GDP per capita for Turkey IS halved. Lira crashing means they can import less oil which means energy prices go up, less components so manufactured product prices go up, etc. Having your currency collapse IS a real decline in standard of living.

 

[Mista]

yes, GDP per capita for Turkey IS halved. Lira crashing means they can import less oil which means energy prices go up, less components so manufactured product prices go up, etc. Having your currency collapse IS a real decline in standard of living.

If there's an increase in import prices, PPP will be adjusted accordingly as there will be inflation.

Eg, price of chicken in Malaysia and price of rice in Thailand rise > cost of chicken rice in SG increases > food prices and CPI increase > adjustment of real GDP from nominal GDP by subtracting inflation

 

[FairAndUnbiased]

If there's an increase in import prices, PPP will be adjusted accordingly as there will be inflation.

Eg, price of chicken in Malaysia and price of rice in Thailand rise > cost of chicken rice in SG increases > food prices and CPI increase > adjustment of real GDP from nominal GDP by subtracting inflation

CPI does not have direct correlation to PPP multiplier though, as you can weigh it such that components of CPI that aren't affected by trade are weighed highly while components of CPI that are affected by trade are unaffected, even if the weights aren't the actual share of consumption.

 

[ILC]

South Korea will stagnate much faster than people think

https://twitter.com/x/status/1479545887617650694

 

[Leishangthem]

Japan laid the foundation for development in both ,compare colonies of West to so called colonies of japan,difference is Japan didn't consider any region as colony,either you're part of imperial japan or not.So they were treated as fairly as possible and laid foundation for development including training of leaders.And after de-occupation , funded their development.

 

[INS_Vikrant]

Japan laid the foundation for development in both nation,compare colonies of West to so called colonies of japan,difference is Japan didn't consider any region as colony,either you're part of imperial japan or not.So they were treated as fairly as possible and laid foundation for development including training of leaders.And after de-occupation , funded their development.

Just Google the word comfort women, unit 731, nanking etc

 

[Mista]

CPI does not have direct correlation to PPP multiplier though, as you can weigh it such that components of CPI that aren't affected by trade are weighed highly while components of CPI that are affected by trade are unaffected, even if the weights aren't the actual share of consumption.

Well, I would imagine that it gives a rough gauge of price levels no matter how imperfect it is, and thus a more accurate indicator of living standards. Taiwan's having half of US's price levels and lower price levels than the mainland doesn't seem outrageous to me.

Also, their currency is being held down and isn't in line with their fundamentals; they have among the highest current account surplus as a % of GDP and they are achieving it consistently for many years.

Taiwan Likely to Stay on Watchlist in Next U.S. FX Report

Taiwan’s soaring trade surplus means it is likely to stay on the U.S. Treasury’s foreign exchange watchlist when the next report is released, continuing the scrutiny on the island’s currency policy.

www.bloomberg.com

South Korea will stagnate much faster than people think

https://twitter.com/x/status/1479545887617650694

A pity. Countries like SK are gonna face steep population decline while countries which can barely feed itself and depend on aid are seeing population explosion.

 

[MH.Yang]

Basic economics enable rising ROK products to under cut price of Japanese products. Once ROK GDP per capita is equal to Japan, then their products won't be able to undercut in cost any more. So things will reach an equilibrium. Besides, if the cost to ROK getting a slightly higher GDP per capita than Japan is maintaining a fertility rate of less than 1.0, then it probably isn't worth it. Too much work hours and too much emphasis on K-pop.

Japan's population problem is not much better than that of South Korea, Japan has no right to laugh at Koreans.

Of course, we have no right to laugh at the Japanese too.

 

[Mista]

Japan's population problem is not much better than that of South Korea, Japan has no right to laugh at Koreans.

Of course, we have no right to laugh at the Japanese too.

Ironically, Japan has the highest TFR among the 3 countries lol.

 

[MH.Yang]

Ironically, Japan has the highest TFR among the 3 countries lol.

If only one of the three countries can solve the population problem, it must be China.

 

[Leishangthem]

Just Google the word comfort women, unit 731, nanking etc

comfort woman are willing workers in the industry, well paid, more so than average workers in that era,Unit 731 agenda is fabricated and overexaggerated anti japanese propaganda initiated by KMT .Both nations duped by the US into a historical qualm against JAPAN.