(GDP) represents the size of a country’s economy while per-capita GDP gives view of average welfare of residents which the sum value of the all of the finished goods produced annually divided by each country’s middle-of-the-year population. Since GDP is expressed in local currency so it is not effective in comparing economies across national boundaries to determine poorest countries of the world since it do not reflect differences in the cost of living. Therefore we need to adjust for differences in purchasing power. Converting GDP into common unit for comparison purpose distorts real income as well because exchange rates depends on demand and supply of currencies used in international transactions furthermore goods and services may cost more in one country than in another, so just finding countries with lowest GDP per capita is not enough to precisely list world’s poorest nations.
GDP at purchasing power parity is the most preferred method to make more accurate comparisons of standards of living across poorest countries since its take into account the relative cost of living and the inflation rates and generalized differences in living standards on the whole between nations.
Listed below are the top ten poorest countries with lowest per capita income.
|Rank||Country||Lowest GDP PER CAPITA (PPP) Estimated Data Projection 2014 (Current international dollar)|
|1.||Central African Republic||607.17|
|2.||Democratic Republic of the Congo||703.734|
See more of your interest:
- Top 10 Countries With The Lowest Levels Of Public Debt
- Top 10 Richest Countries in the World
- Where is the Largest Seaport in the World
- Top 10 Failed Countries in the World
- Ten Biggest Lending Countries of the World
- Which Country is Best to do Business in?
- Countries with the Highest Interest Rates in the World
- Ten Countries with Least Income Inequality
- Top 10 Countries having Highest Salaries in the World
- The 30 Most Prosperous Countries In The World