The Big Mac Index: A Measure of Purchasing Power Parity
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The Big Mac Index: A Measure of Purchasing Power Parity & Burger Inflation

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The Big Mac Index: A Measure of PPP and Burger Inflation

The Big Mac was created in 1967 by Jim Delligati, a McDonald’s franchise owner in Pennsylvania. It was launched throughout the U.S. the following year, and today you can buy one in more than 70 countries. However, the price you pay will vary based on where you are, as evidenced by the Big Mac Index.

Spanning from 2004-2022, this animation from James Eagle shows the U.S. dollar price of a Big Mac in select countries around the world.

What Does the Big Mac Index Show?

The Big Mac Index was invented by The Economist in 1986. It is intended to be a lighthearted way to demonstrate the concept of purchasing power parity. In other words, it helps illustrate the idea that market exchange rates between countries may be “out of whack” when compared to the cost of buying the same basket of goods and services in those places.

Given that McDonald’s is one of the biggest companies in the world and the Big Mac is widely available globally, it means that the famous burger can be used as a basic goods comparison between most countries. It also has the advantage of having the same inputs and distribution system, with a few minor modifications (like chicken patties in India instead of beef).

Using the price of a Big Mac in two countries, the index can give an indication as to whether a currency may be over or undervalued. For example, a Big Mac costs ¥24.40 in China and $5.81 in the United States. By comparing the implied exchange rate to the actual exchange rate, we can see whether the Yuan is over or undervalued.

big mac index math

According to the Big Mac Index, the Yuan is undervalued by 34%.

Beyond currency misalignment, the index has other uses. For instance, it shows inflation in burger prices over time. If we compare the price of a Big Mac across countries in the same currency—such as the U.S. dollar—we are also able to see where burgers are cheaper or relatively more expensive.

Burger Costs Around the World

In the animation, all Big Mac prices have been converted from local currency to U.S. dollars based on the actual exchange rate in effect at the time. Below, we show the change in price of a Big Mac in select countries, ordered by January 2022 prices.

CountryMay 2004January 2022% change
Switzerland$4.88$6.9843%
Norway$5.18$6.3923%
United States$2.90$5.81100%
Sweden$3.94$5.7947%
Israel$2.79$5.3592%
Canada$2.33$5.32129%
Venezuela$1.48$5.06243%
Euro area$3.29$4.9551%
Denmark$4.46$4.828%
Britain$3.37$4.8243%
New Zealand$2.65$4.6073%
Australia$2.27$4.5198%
Singapore$1.93$4.36126%
Brazil$1.70$4.31154%
Argentina$1.48$4.29190%
Sri Lanka$1.41$4.15193%
Czech Republic$2.13$4.1193%
Chile$2.18$3.8878%
Thailand$1.45$3.84166%
China$1.26$3.83205%
South Korea$2.72$3.8240%
Poland$1.63$3.44111%
Japan$2.32$3.3846%
Peru$2.58$3.3631%
Mexico$2.07$3.3462%
Hungary$2.51$3.0923%
Hong Kong$1.54$2.8283%
Philippines$1.23$2.79126%
Taiwan$2.25$2.7020%
South Africa$1.86$2.5839%
Ukraine$1.36$2.4379%
Malaysia$1.33$2.3980%
Indonesia$1.77$2.3634%
Turkey$2.58$1.86-28%
Russia$1.45$1.7420%

Switzerland takes the cake for the priciest Big Mac, followed closely behind by Norway. Both countries have relatively high price levels but also enjoy higher wages when compared to other OECD countries.

Venezuela has seen the largest jump in burger prices, with the cost of a Big Mac climbing nearly 250% since 2004. The country has been plagued by hyperinflation for years, so it’s no surprise to see large price swings in the country’s data.

While it appears that the price of a Big Mac has decreased in Turkey, this is because the prices are shown in U.S. dollars. The new Turkish lira has depreciated against the U.S. dollar more than 90% since it was introduced in 2005.

Finally, it’s worth noting that Russia has the cheapest Big Mac, reflecting the country’s lower price levels. Labor costs in Russia are roughly a third of those in Switzerland.

The Limitations of Burgernomics

The Big Mac Index is useful for a number of reasons. Investors can use it to measure inflation over time, and compare this to official records. This can help them value bonds and other securities that are sensitive to inflation. The Big Mac Index also indicates whether a currency may be over or undervalued, and investors can place foreign exchange trades accordingly.

Of course, the index does have shortcomings. Here are some that economists have noted.

  • Non-traded services can have different prices across countries. The price of a Big Mac will be influenced by the costs of things like labor, but this is not a reflection of relative currency values. The Economist now releases a GDP-adjusted version of the Big Mac Index to help address this criticism.
  • McDonald’s is not in every country in the world. This means the geographic reach of the Big Mac Index has some limitations, particularly in Africa.
  • The index lacks diversity. The index is made up of one item: the Big Mac. Because of this, it lacks the diversity of other economic metrics such as the Consumer Price Index.

Despite all of these limitations, the Big Mac Index does act as a good starting place for understanding purchasing power parity. Through the simplicity of burgers, complex economic theory is easier to digest.

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This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

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Wealth

Ranked: The 50 Richest Countries by GDP Per Capita in 2025

For most countries, GDP per capita measures relative prosperity. For the richest ones, it’s indicating other influences in their economies.

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Ranked: The 50 Richest Countries by GDP Per Capita in 2025

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Key Takeaways

  • Luxembourg is the richest country in the world by GDP per capita, $141K in 2025.
  • The U.S. is the richest country ($89K) with a population of more than 10 million.
  • The top four ranks are countries known as offshore wealth centers.
  • A number of oil-rich, small nations are also present on this list.

GDP per capita is a rough proxy for a country’s average living standards. A higher GDP per capita usually reflects more economic resources available per person, a signal for prosperity.

However, like all statistical measures there are caveats: it doesn’t account for income distribution, quality of life metrics, or how sustainable the economy is.

Nevertheless, it is a standard that can be applied to make useful comparisons, while keeping these caveats in mind.

So, what are the “richest” countries in the world? We rank the top 50 countries by GDP per capita in 2025 using figures from the International Monetary Fund (IMF).

All values are in current USD, which means: it is not adjusted for currency rates, cost of living metrics, or inflation.

Ranked: The Richest Countries in the World in 2025

Luxembourg is the richest country in the world by GDP per capita, $140,941 in 2025.

The U.S. is the richest country ($89,105) with a population of more than 10 million.

RankCountry/ RegionISO CodeGDP Per Capita
1🇱🇺 LuxembourgLUX$140,941
2🇮🇪 IrelandIRL$108,919
3🇨🇭 SwitzerlandCHE$104,896
4🇸🇬 SingaporeSGP$92,932
5🇮🇸 IcelandISL$90,284
6🇳🇴 NorwayNOR$89,694
7🇺🇸 U.S.USA$89,105
8🇲🇴 Macao SARMAC$76,314
9🇩🇰 DenmarkDNK$74,969
10🇶🇦 QatarQAT$71,653
11🇳🇱 NetherlandsNLD$70,480
12🇦🇺 AustraliaAUS$64,547
13🇸🇲 San MarinoSMR$59,603
14🇦🇹 AustriaAUT$58,192
15🇸🇪 SwedenSWE$58,100
16🇧🇪 BelgiumBEL$57,772
17🇮🇱 IsraelISR$57,760
18🇭🇰 Hong Kong SARHKG$56,031
19🇩🇪 GermanyDEU$55,911
20🇬🇧 United KingdomGBR$54,949
21🇫🇮 FinlandFIN$54,163
22🇨🇦 CanadaCAN$53,558
23🇦🇪 UAEARE$49,498
24🇫🇷 FranceFRA$46,792
25🇳🇿 New ZealandNZL$46,126
26🇲🇹 MaltaMLT$45,735
27🇦🇩 AndorraAND$45,263
28🇨🇾 CyprusCYP$41,132
29🇮🇹 ItalyITA$41,091
30🇵🇷 Puerto RicoPRI$38,605
31🇦🇼 ArubaABW$37,775
32🇧🇸 BahamasBHS$36,784
33🇪🇸 SpainESP$36,192
34🇸🇮 SloveniaSVN$35,332
35🇧🇳 Brunei DarussalamBRN$34,970
36🇰🇷 South KoreaKOR$34,642
37🇹🇼 TaiwanTWN$34,426
38🇯🇵 JapanJPN$33,956
39🇨🇿 Czech RepublicCZE$33,039
40🇪🇪 EstoniaEST$32,760
41🇬🇾 GuyanaGUY$32,326
42🇱🇹 LithuaniaLTU$30,835
43🇸🇦 Saudi ArabiaSAU$30,099
44🇵🇹 PortugalPRT$30,002
45🇰🇼 KuwaitKWT$29,951
46🇧🇭 BahrainBHR$28,857
47🇸🇰 Slovak RepublicSVK$27,130
48🇵🇱 PolandPOL$26,805
49🇧🇧 BarbadosBRB$25,901
50🇬🇷 GreeceGRC$25,756
51🇭🇷 CroatiaHRV$25,674
52🇭🇺 HungaryHUN$24,809
53🇱🇻 LatviaLVA$24,374
54🇺🇾 UruguayURY$22,693
55🇦🇬 Antigua
& Barbuda
ATG$22,630
56🇰🇳 Saint Kitts
& Nevis
KNA$21,911
57🇸🇨 SeychellesSYC$21,633
58🇷🇴 RomaniaROU$21,421
59🇵🇦 PanamaPAN$20,080
60🇨🇷 Costa RicaCRI$19,095
61🇵🇼 PalauPLW$18,993
62🇴🇲 OmanOMN$18,966
63🇧🇬 BulgariaBGR$18,522
64🇹🇹 Trinidad
& Tobago
TTO$18,445
65🇲🇻 MaldivesMDV$18,207
66🇨🇱 ChileCHL$17,015
67🇹🇷 TürkiyeTUR$16,709
68🇰🇿 KazakhstanKAZ$14,768
69🇱🇨 Saint LuciaLCA$14,499
70🇦🇷 ArgentinaARG$14,362
71🇷🇺 RussiaRUS$14,258
72🇷🇸 SerbiaSRB$14,174
73🇨🇳 ChinaCHN$13,687
74🇲🇪 MontenegroMNE$13,508
75🇹🇲 TurkmenistanTKM$13,337
76🇲🇾 MalaysiaMYS$13,145
77🇳🇷 NauruNRU$12,727
78🇲🇽 MexicoMEX$12,692
79🇬🇩 GrenadaGRD$12,591
80🇲🇺 MauritiusMUS$12,332
81🇩🇴 Dominican RepublicDOM$11,743
82🇻🇨 Saint Vincent
& the Grenadines
VCT$11,162
83🇦🇱 AlbaniaALB$10,527
84🇧🇷 BrazilBRA$9,964
85🇲🇰 North MacedoniaMKD$9,882
86🇩🇲 DominicaDMA$9,869
87🇬🇪 GeorgiaGEO$9,571
88🇦🇲 ArmeniaARM$8,857
89🇬🇦 GabonGAB$8,842
90🇵🇪 PeruPER$8,814
91🇧🇿 BelizeBLZ$8,648
92🇧🇦 Bosnia and HerzegovinaBIH$8,362
93🇲🇩 MoldovaMDA$8,260
94🇲🇭 Marshall IslandsMHL$8,133
95🇨🇴 ColombiaCOL$8,054
96🇧🇾 BelarusBLR$7,875
97🇯🇲 JamaicaJAM$7,778
98🇹🇭 ThailandTHA$7,767
99🇬🇶 Equatorial GuineaGNQ$7,750
100🇦🇿 AzerbaijanAZE$7,604
101🇲🇳 MongoliaMNG$7,201
102🇽🇰 KosovoXKX$7,147
103🇧🇼 BotswanaBWA$7,021
104🇪🇨 EcuadorECU$6,942
105🇸🇷 SurinameSUR$6,858
106🇱🇾 LibyaLBY$6,801
107🇫🇯 FijiFJI$6,740
108🇬🇹 GuatemalaGTM$6,698
109🇹🇻 TuvaluTUV$6,543
110🇵🇾 ParaguayPRY$6,522
111🇿🇦 South AfricaZAF$6,397
112🇺🇦 UkraineUKR$6,261
113🇸🇻 El SalvadorSLV$5,722
114🇹🇴 TongaTON$5,721
115🇩🇿 AlgeriaDZA$5,691
116🇮🇶 IraqIRQ$5,668
117🇼🇸 SamoaWSM$5,471
118🇨🇻 Cabo VerdeCPV$5,421
119🇫🇲 MicronesiaFSM$5,291
120🇮🇩 IndonesiaIDN$5,027
121🇯🇴 JordanJOR$4,903
122🇻🇳 VietnamVNM$4,806
123🇳🇦 NamibiaNAM$4,661
124🇸🇿 EswatiniSWZ$4,613
125🇹🇳 TunisiaTUN$4,528
126🇧🇴 BoliviaBOL$4,525
127🇲🇦 MoroccoMAR$4,397
128🇵🇭 PhilippinesPHL$4,350
129🇩🇯 DjiboutiDJI$4,343
130🇧🇹 BhutanBTN$4,302
131🇻🇪 VenezuelaVEN$4,068
132🇮🇷 IranIRN$3,897
133🇸🇹 São Tomé & PríncipeSTP$3,569
134🇻🇺 VanuatuVUT$3,548
135🇭🇳 HondurasHND$3,519
136🇺🇿 UzbekistanUZB$3,514
137🇪🇬 EgyptEGY$3,174
138🇳🇮 NicaraguaNIC$3,019
139🇦🇴 AngolaAGO$2,884
140🇮🇳 IndiaIND$2,878
141🇨🇮 Côte d'IvoireCIV$2,872
142🇰🇭 CambodiaKHM$2,870
143🇰🇬 Kyrgyz RepublicKGZ$2,747
144🇧🇩 BangladeshBGD$2,689
145🇭🇹 HaitiHTI$2,672
146🇵🇬 Papua New
Guinea
PNG$2,565
147🇬🇭 GhanaGHA$2,519
148🇲🇷 MauritaniaMRT$2,478
149🇰🇪 KenyaKEN$2,468
150🇰🇮 KiribatiKIR$2,414
151🇸🇧 Solomon IslandsSLB$2,379
152🇨🇬 CongoCOG$2,356
153🇿🇼 ZimbabweZWE$2,199
154🇱🇦 LaosLAO$2,096
155🇬🇳 GuineaGIN$1,904
156🇨🇲 CameroonCMR$1,865
157🇸🇳 SenegalSEN$1,811
158🇰🇲 ComorosCOM$1,702
159🇧🇯 BeninBEN$1,532
160🇹🇱 Timor-LesteTLS$1,491
161🇳🇵 NepalNPL$1,458
162🇹🇯 TajikistanTJK$1,432
163🇺🇬 UgandaUGA$1,338
164🇿🇲 ZambiaZMB$1,332
165🇹🇿 TanzaniaTZA$1,280
166🇲🇲 MyanmarMMR$1,177
167🇬🇼 Guinea-BissauGNB$1,126
168🇧🇫 Burkina FasoBFA$1,107
169🇱🇸 LesothoLSO$1,098
170🇪🇹 EthiopiaETH$1,066
171🇹🇬 TogoTGO$1,053
172🇷🇼 RwandaRWA$1,043
173🇹🇩 ChadTCD$991
174🇬🇲 GambiaGMB$988
175🇲🇱 MaliMLI$936
176🇸🇱 Sierra LeoneSLE$916
177🇱🇷 LiberiaLBR$908
178🇳🇬 NigeriaNGA$807
179🇸🇴 SomaliaSOM$766
180🇳🇪 NigerNER$751
181🇨🇩 DRCCOD$743
182🇲🇿 MozambiqueMOZ$663
183🇸🇩 SudanSDN$625
184🇲🇬 MadagascarMDG$595
185🇲🇼 MalawiMWI$580
186🇨🇫 Central
African Republic
CAF$532
187🇧🇮 BurundiBDI$490
188🇾🇪 YemenYEM$417
189🇸🇸 South SudanSSD$251
N/A🇦🇫 AfghanistanAFGNo Data
N/A🇪🇷 EritreaERINo Data
N/A🇱🇧 LebanonLBNNo Data
N/A🇵🇰 PakistanPAKNo Data
N/A🇱🇰 Sri LankaLKANo Data
N/A🇸🇾 SyriaSYRNo Data
N/A🇵🇸 PalestinePSENo Data
N/A🌍 WorldN/A$14,213

Note: Data is missing for: Afghanistan, Eritrea, Lebanon, Pakistan, Sri Lanka, Syria, Palestine. Figures for several overseas territories are also not included.

Noticeably, many of the top spots are held by small countries with specialized financial services sectors, also known offshore financial centers.

Luxembourg (#1), Ireland (#2), Switzerland (#3), Singapore (#4), Netherlands (#11) and Hong Kong (#18) are all considered tax havens as their friendly tax laws, strict privacy rules, and strong financial sectors encourage multinational corporations to route earnings through them.

As a result, this improves their GDP a significant amount, but doesn’t reflect the resident populations productivity.

In Ireland’s case, these flows distorted GDP values so much that the government discontinued its use as a reliable statistic, preferring to measure and compare gross national income (GNI) instead.

Oil Wealth a Major Factor

Energy-rich countries also dominate the rankings. Qatar (#10), UAE (#23), and Saudi Arabia (#43) rank high due to oil exports fueling government spending and infrastructure.

Norway (#6), with a large sovereign wealth fund, is Europe’s prime example of oil wealth being reinvested.

Guyana, a newcomer at #41, has rapidly climbed the ranks following major offshore oil discoveries and production growth.

America’s Scale and Wealth

Finally, while the U.S. ranks #7 in GDP per capita, it stands out for its scale. It’s the richest country in the world by GDP per capita with a population over 10 million, highlighting its economic might.

Other populous countries, like Germany, Japan, the UK, and France all fall lower in per capita terms, despite large total economies.

High-tech industries, consumer spending, and capital markets contribute to America’s wealth profile.

Learn More on the Voronoi App

Want a closer look at the American economy? Check out: America’s $19 Trillion Consumption Sector in one chart, to see where Americans spend their dollars.

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