The five economies that are at the bottom of the survey are Nepal, Bangladesh, Lao PDR, Cambodia, and Viet Nam.
As for the people living in the two giant economies, a person living in the PRC spends an average of only HK$11,502 per year, while an Indian consumes an average of HK$9,346 per year.
Purchasing Power Parities (PPP) is an idea popularized by The Economist's Big Mac Index which prices hamburgers in global cities for a quick and crude comparison of living standards. The ICP is more comprehensive as it covers a broader range of commodities.
Based on the Price Level Index, which is the ratio of the PPP to the exchange rate, Fiji Islands and Hong Kong, China are the two costliest places to live in. They are followed by Macao, China; Singapore; and Taipei,China.
PRC ranks eighth, and India ranked 16th in terms of PLIs. Price levels in the Philippines, Thailand, and Indonesia are very similar and are close to the Asian average.
The cheapest places are Lao PDR, Viet Nam, Islamic Republic of Iran, Cambodia, and Nepal.
“The results provide the most comparable information on breakdown of GDP expenditures across the Asia Pacific,” ADB Chief Economist Ifzal Ali says. “Purchasing Power Parities are a more appropriate currency converter to compare living standards and the structure of economies than market exchange rates.”
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