(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|
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