Which country has the highest purchasing power?

By Ritesh|Updated : September 3rd, 2022

Switzerland has the highest purchasing power as of the year 2020. Purchasing power is the worth of a currency expressed in terms of the number of goods that one unit of capital can purchase.

Techniques for GDP Estimation:

  • According to the Committee on Real Sector Statistics, three techniques exist to generate back series.
  • Based on a production shift approach;
  • Based on the new GDP methodology;
  • By projecting the old series using the base year 2004–05 ahead and then adjusting it to the base year 2011–12 by comparing it with the new series. The Committee stated that the third strategy has not yet been tried.

Rebasing of India's GDP:

  • The government frequently takes this action to ensure that the GDP accurately depicts the state of the economy in terms of structural changes, the significance of the contributions made by various sectors, the importance of the agricultural industry, etc.
  • The UN's SNA (System of National Accounts) recommendations in 2008 were considered when the CSO performed the current rebasing.

GDP in India:

  • The CSO can get feedback, independently calculate, and publish new data. The data and outcomes must be accurate and true to the situation.
  • The CSO can consult with or involve experts if it wants to increase transparency.
  • Simply put, GDP is a statistical tool. Instead of just growth, there should be a stronger emphasis on inclusive growth, including the development outcomes that result from that growth.
  • In Maharashtra, one of the wealthiest states in India, farmer suicides are entirely incomprehensible.

Summary:

Which country has the highest purchasing power?

As of 2020, Switzerland is currently ranked first in the buying power index. The system in which the value of a currency is indicated in terms of the number of goods or services that one unit of money can buy is called purchasing power.

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