Top 25 Developed and Developing Countries
Some economists prefer to see a per capita GDP of at least $25,000 to be comfortable declaring a country as developed, however. Many highly developed countries, including the United States, have high per capita GDPs of $40,000 or above
One major limitation of GDP is that consumer prices for the same items—say, a gallon of milk or a tank of gasoline— vary from country to country, sometimes significantly. To account for such differences, a variant of GDP adjusts for purchasing power parity, converting goods valued at U.S. prices.
Top 10 Countries by GDP (PPP)
|GDP-PPP Rank||Country||GDP-PPP in USD trillions(2017 est.)|
While useful for a snapshot of the world’s economic powerhouses, such measures are also crude. Countries obviously have different populations, which means that looking exclusively at GDP can distort reality and/or be so evident as to be meaningless. Of course China (Pop: 1.4 billion) has a larger GDP than Ireland (Pop: 5 million). So what? To suggest how a hypothetical average citizen might experience a nation’s economic output, the more relevant statistic is GDP per capita. The population of China may be 280 times larger than the population of Ireland. Yet the typical Irish person ($75,500) is nearly five times richer than his Chinese counterpart ($16,700), even though despite the fact that his country is 280 times smaller. But if GDP per capita is a useful equalizer for comparative analysis, it should also be taken with a grain of salt. By definition, the countries with the highest GDP per capita are those with an unusual concentration of wealth. So it’s unsurprisingly, the top 10 countries include geographically small royal enclaves, tax shelters, gambling havens, and other epicenters of wealth.
In terms of overall wealth, these countries are middling: four of the 10 are in the Top 100 of GDP; the other six are in the Top 200.
Differences Between Developed and Developing Countries
Exceeding even the $12,000 GDP does not automatically qualify a country as being developed. Developed countries share several other characteristics