For the first time, the combined GDP of poor nations is greater than the rich onesPosted: August 28, 2013
For the first time ever, the combined gross domestic product of emerging and developing markets, adjusted for purchasing price parity, has eclipsed the combined measure of advanced economies. Purchasing price parity—or PPP for short—adjusts for the relative cost of comparable goods in different economic markets.
According to the International Monetary Fund—the supplier of this data—emerging and developing economies will have a purchasing price parity-adjusted GDP of $42.8 trillion in 2013, while that of emerging economies will be $44.4 trillion. In other words, emerging markets will create $1.6 trillion more value in goods and services than advanced markets this year.
It’s worth keeping in mind that the emerging economies have strength in numbers. Not only are there more emerging and developing nations; those nations also boast a larger combined population.
As such, emerging and developing economies trail far behind advanced economies in per-capita terms. Their aggregate per-capita PPP-adjusted GDP is $7,415, while the same measure for advanced nations totals $41,369.
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- Fed Shouldn’t Ignore Emerging Market Crisis (blogs.wsj.com)
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- We May Be In The Early Stages Of The Next Global Economic Crisis (businessinsider.com)
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- Carstens Calls for Policy Coordination Among Advanced Nations (bloomberg.com)
- IMF Buries U.S. Growth as Drag on Global Economy (247wallst.com)
- On The Global QE Exit Crisis (wchildblog.com)