After plowing through Trading Economics, I think I found my newest macroeconomics data favourite: PPP-adjusted GDP per capita, or in short – purchasing power per capita (PPPC). In a way it directly accounts for inflation differences and shows how much economic activity people “actually” contribute to. I played around with it a bit more and looked at YoY changes for China, Japan, Hong Kong and South Korea for the last 10 years, and I think there are some pretty interesting results here.
- Hong Kong seems to have lost its ability to track China closely on a PPPC basis, and now it looks more like a riskier bet to live in Hong Kong without the juicy returns they used to enjoy.
- Japan is looking a bit rough. These figures sure are more flattering than the GDP YoY figures, but being honest it seems like the only thing that kept Japan from sliding into deep negative territory in 2013 was Abe coming to power. If, after all the cheering that the policies are getting after two out of three arrows result in this for the average Japanese person, then a third, fourth and fifth are probably needed pretty soon.
- China isn’t in the 10% range on YOY PPPC growth anymore, but seems to be pretty stable around 7%. The question now is – what sort of quality does this have? And can Xi + Li increase that quality with reforms from the Third (and Fourth!) Plenary Sessions?
- Similar economies, similar charts: the correlation between Japan and Korea on this data is pretty interesting!