Country Economic Rankings
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Country rankings are indicative of the economic performance of different countries on a specific variable. For cross country comparisons, the value of the underlying parameter is converted into US dollar amounts. Standard market exchange rates or government-approved official rates are used for the purpose of currency conversion.
Country Rankings: Major Variables for Country Comparisons
Countries can be ranked on all available economic indicators. However, some of the most prominent indicators for country comparison are:
Country rankings are indicative of the economic performance of different countries on a specific variable. For cross country comparisons, the value of the underlying parameter is converted into US dollar amounts. Standard market exchange rates or government-approved official rates are used for the purpose of currency conversion.
Country Rankings: Major Variables for Country Comparisons
Countries can be ranked on all available economic indicators. However, some of the most prominent indicators for country comparison are:
GDP (nominal): Several international organizations, such as the IMF, World Bank and CIA, rank countries based on GDP (gross domestic product). It is the measure of final goods and services produced in the country over a period. Based on GDP estimates for 2008, the top five countries in the IMF list are:
- United States
- Japan
- China
- Germany
- France
GDP (PPP) per capita: To measure the standard of living for a nation, GDP figures derived from purchasing power parity (PPP) estimates are divided by total population. Since GDP figures based on purchasing power parity are mere estimations and not hard facts, the country rankings from different organizations tend to differ. The 2008 list of country rankings prepared by the IMF contains:
- Qatar
- Luxembourg
- Norway
- Singapore
- Brunei
Business freedom: A country comparison can be based on the opportunities available for doing business in an economy. It encompasses business regulations, trade barriers, licensing, tax reforms, infrastructure, investment laws and financing. The 2009 index of economic freedom, prepared by the Heritage Foundation US, place the following nations on top country rankings:
- Hong Kong
- Singapore
- Australia
- Ireland
- New Zealand
Foreign reserves: Foreign exchange reserves are the foreign currency available with the central bank of any nation. The assets available with the central bank exist in different currencies such as US Dollar, Euro or Yen. These assets are deposited by other banks, financial institutions or the government. According to the IMF country rankings based on foreign reserves, the nations that top the chart are:
- People’s Republic of China
- Japan
- Russia
- Republic of China
- India
There are other indicators, such as corruption index, foreign investment, inflation and balance of trade, which can be used for country rankings.
