China currently holds the global highest purchasing power parity in 2024.
The difference in the cost of purchasing the same products in different economies has been described as the purchasing power parity, a development caused by lower wages in the underdeveloped countries.
According to the International Monetary Fund (IMF), the purchasing power parity (PPP) can be described as the rate at which the currency of one country would have to be converted into the currency of another country to purchase the same amount of goods and services in each country.
For example, a handmade suit is more expensive in New York than in Delhi, a plate of a continental dish costs more in Paris than in China, and the ticket of a soccer game is more expensive in London than in Lahore.
A global financial investment firm, InsiderMonkey has curated the 10 countries with the highest purchasing power parity in the world in 2024.
10 countries with the highest purchasing power parity
The firm used data from the IMF for the Gross Domestic Product (GDP) and the percentage share of the world according to purchasing power parity (PPP) in 2024.
1. China
China currently holds the global highest purchasing power parity in 2024 with a 19.01% stake in the global GDP (PPP) based on purchasing power parity of $35.29 trillion.
2. USA
The United States’ GDP of $28.78 trillion based on purchasing power parity in the world makes it the second largest economy in the world. The US also holds 15.50% of the global GDP (PPP).
3. India
India comes in third position as one of the fastest-growing economies in the world with a GDP of $14.59 trillion based on purchasing power parity which accounts for 7.86% of the global GDP (PPP).
4. Japan
Japan has a highly advanced economy made up of its strong manufacturing sector, particularly in electronics, automobiles. The country has a GDP of $6.72 trillion based on purchasing power parity and holds 3.62% of the global GDP (PPP).
5. Germany
Germany, known for its strong industrial base, is a leader in the global export sector. The country has a GDP (PPP) of $5.96 trillion and holds a 3.06% share in the global GDP (PPP).
Countries with the highest purchasing power parity
6. Russia
Despite facing economic sanctions, Russia’s wealth which lies more in natural resources, particularly oil, gas, and minerals has a GDP of $5.47 trillion based on purchasing power parity. It also holds a share of 2.95% of the global GDP (PPP).
7. Indonesia
Indonesia’s very vibrant economy which is also the strongest in Southeast Asia is based on its strong GDP and purchasing power parity of $4.72 trillion and represents 2.54% of the global GDP (PPP).
8. Brazil
Brazil prides itself as the largest economy in South America with a GDP (PPP) of $4.27 trillion which accounts for 2.30% of the global GDP (PPP).
9. United Kingdom
The UK’s economy is driven by its strong financial services sector, particularly in London with a GDP of $4.03 trillion based on purchasing power parity and accounts for 2.17% of the global GDP (PPP).
10. France
France is one of Europe’s strongest economies and has a GDP of $3.99 trillion based on purchasing power parity which accounts for 2.15% of the global GDP by PPP.
