When calculated at market rates, Japan’s per head income ($42,300) is much higher than Taiwan’s ($18,300), but when the costs of living in these societies are taken into account some surprising changes appear. If calculated according to the purchase-power parities (PPPs) system, in 2010 Taiwan’s standard of living has just surpassed Japan’s. Cheaper housing (one third of Japan’s) and food (half) are the main factors equalizing the differences observed in the index based on market rates. According to the International Monetary Fund and with calculations based on the PPPs system, Japan’s income per head is estimated at $33,800, whereas Taiwan’s is estimated at $34,700. Other east asian countries that initially followed the trail of Japan’s economy but that surpassed it based on the PPPs calculations are Singapore and Hong Kong, with South Korea also bridging the gap.
Monday, November 22, 2010
Taiwan’s standard of living ahead of Japan’s
From http://www.economist.com/node/17473187?story_id=17473187&fsrc=rss (in English)
When calculated at market rates, Japan’s per head income ($42,300) is much higher than Taiwan’s ($18,300), but when the costs of living in these societies are taken into account some surprising changes appear. If calculated according to the purchase-power parities (PPPs) system, in 2010 Taiwan’s standard of living has just surpassed Japan’s. Cheaper housing (one third of Japan’s) and food (half) are the main factors equalizing the differences observed in the index based on market rates. According to the International Monetary Fund and with calculations based on the PPPs system, Japan’s income per head is estimated at $33,800, whereas Taiwan’s is estimated at $34,700. Other east asian countries that initially followed the trail of Japan’s economy but that surpassed it based on the PPPs calculations are Singapore and Hong Kong, with South Korea also bridging the gap.
When calculated at market rates, Japan’s per head income ($42,300) is much higher than Taiwan’s ($18,300), but when the costs of living in these societies are taken into account some surprising changes appear. If calculated according to the purchase-power parities (PPPs) system, in 2010 Taiwan’s standard of living has just surpassed Japan’s. Cheaper housing (one third of Japan’s) and food (half) are the main factors equalizing the differences observed in the index based on market rates. According to the International Monetary Fund and with calculations based on the PPPs system, Japan’s income per head is estimated at $33,800, whereas Taiwan’s is estimated at $34,700. Other east asian countries that initially followed the trail of Japan’s economy but that surpassed it based on the PPPs calculations are Singapore and Hong Kong, with South Korea also bridging the gap.
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