Major findings of a new World Bank report, comparing the real size of the world economies, have bracketed Pakistan together with the cheapest economies including Egypt, Myanmar, Ethiopia and Laos, showing price level index (PLI) ranging from 35 to 40.
An index of over 100 means that prices on average are higher than the world’s, and less than 100 means prices are lower. According to the 2011 International Comparison Programme, functioning under the control of UN Statistical Commission, 23 economies are showing a PLI of 50 or below. PLI is the ratio of purchasing power parities (PPP) to corresponding exchange rates.
The most expensive economies in GDP terms are Switzerland, Norway, Barmuda, Australia and Denmark, with indices ranging from 210 to 185.
The five economies with the highest GDP per capita are Qatar, Macao, Luxembourg, Kuwait, and Brunei. The first two economies have more than $100,000 per capita.
Six of the world’s 12 largest economies are in the middle income category. When combined, the 12 largest economies account for two thirds of the world economy, and 59 per cent of the world population.