⚖️ How Similarly-Populated Countries Compare in Economic Strength

What We’re Showing:

This chart lists the countries with similarly-sized populations but significantly different GDPs, even when accounting for purchasing power parity.

Data sourced from the International Monetary Fund and United Nations, as of October 2024.

Key Takeaways

There’s a common assumption that larger the population, larger the economic output. For countries with approximately the same population, it’s easier to compare economies.

For example, Singapore has significantly higher GDP compared to Finland, despite similar population sizes.

This is largely due to its strategic position as a global financial hub and major trading port, with the Port of Singapore handling over 37 million shipping containers annually.

Why Use Purchasing Power Parity?

PPP-adjusted metrics reduce the impact of exchange rate fluctuations on GDP comparisons. It uses a consistent set of prices for the same basket of goods, helping compare economic output across countries.

However, it still doesn't account for factors like income inequality, informal economies, or differences in quality of goods and services between nations.