Economist lists world’s richest nations, where does Bangladesh stand?
The Economist prepared a short ranking of richest countries based on three key factors - dollar income per person, adjusted income for local prices (known as purchasing power parity, or ppp), and income per hour worked.
Bangladesh expectedly failed to make its way into the list of 20 countries. Still, the Economist disclosed the economic conditions of Bangladesh and other the remaining countries, including Bangladesh.
As per the current market exchange rate, the per capita GDP in Bangladesh stands at $2,690 in 2023. When adjusted with the PPP, the per capita income leaps to $7,400. Again, it plunges to $5,630 as per the third indicator that measures the amount of time people worked to bag the income.
Neighboring India outpaced Bangladesh in two of the three indicators. The per capita GDP of India stands at $2,390, but the per capita income rises to $8,380 with the PPP factor. And, it decreases slightly to $8,020 as per hours worked.
Pakistan lags far behind its Asian peers with a per capita GDP of $1,600. However, its performance is comparatively better in the remaining two indicators. The per capita GDP stands at $6,440 when measured with the PPP and at $8310 as per the third indicator.
It is too tough to compare the wealth of nations. Countries with lots of people tend to have bigger economies, but that does not mean that individual incomes are high.
In much of western Europe, the trend goes in the opposite direction as nations like Belgium, Germany and Sweden fly up the rankings when their lower prices or enviable work-life balance are taken into account.
Dollar income per person is the most common metric for sorting countries into rich and poor, but it does not account for international differences in prices. Nor does it account for how many hours people have to work to earn their wage.
To provide a fuller picture, the Economist has created the global rich list using the latest available data on the three measures.
The findings showed how fickle economics can be. The United States, despite having the largest GDP at market exchange rates, ranks seventh in per capita income, eighth in PPP, and eleventh in work hours.
China, the second-largest economy globally, secured the 65th spot as per the GDP per capita and 96th as per work hours required. Other countries with gruesome work cultures also see big shifts. For example, South Korea ranks 31st as per the first indicator, 30th as per the second, and 47th as per the third.
In much of western Europe, the trend goes in the opposite direction as nations like Belgium, Germany and Sweden fly up the rankings when their lower prices or enviable work-life balance are taken into account.
Wages in Luxembourg go the furthest in local prices, while Norway has the world’s highest average income per hour worked.
However, the Economist said these calculations are imprecise. As an example, it noted that the ppp conversions struggle to capture differences in the quality of goods and services. Methods for calculating hours worked may differ, and it is hard to estimate particularly in poor countries with large informal sectors.
Besides, the data from some countries cannot be trusted. Some countries – notably China – have very high savings rates, so even their ppp-adjusted GDP per hour will not reflect their living standards.
Moreover, the ranking captured people’s average incomes, not their assets. But the comparison offers a more complete assessment of the world’s richest countries than a focus on any single measure. It shows where the money goes furthest, and where long hours may not always pay off.