Korea to Outpace Japan in Purchasing Power in 2023

Korea will outpace Japan in terms of per-capita purchasing power parity four years from now. Per-capita PPP gauges the purchasing power of each person considering inflation and currency values of each country.

According to the IMF's forecast announced Sunday, Korea's per-capita GDP based on PPP is projected at US$37,542 to rank 32nd out of 194 countries.

Japan's is $39,795 to rank 31st. But Korea is expected to overtake Japan in 2023, when its figure will reach $41,362 and Japan's $41,253. Back in 1980, Japanese per-capita GDP based on PPP was four times larger than Koreans at $20,769.

But the nominal per-capita GDP between the two countries is expected to widen further. Korea's per-capita nominal GDP stands at $31,937 this year to rank 31st in the world compared to Japan's $41,021 in 25th place.

Korea's will grow 20.9 percent to $38,612 or 28th, but Japan's is expected to rise 27.1 percent to $52,140 or 21st.