The International Monetary Fund (IMF) analyzed that the level of per capita gross domestic product (GDP) that people in Korea feel in daily life is $20,000 lower per year than in Taiwan.
According to the Bank of Korea on the 21st, the IMF projected in last week's World Economic Outlook report that Korea's per capita GDP based on purchasing power parity (PPP) this year will be $65,080, up 3.5% from last year.
The IMF estimates per capita GDP based on PPP twice a year to compare living standards across countries. PPP-based per capita GDP is a figure calculated on the basis of the real purchasing power to buy the same goods or services, and it reflects the real purchasing power of currency.
In this analysis, the IMF projected Taiwan's per capita GDP based on PPP at $85,127, which is $20,047 higher than Korea's.
Taiwan's nominal per capita GDP is projected to be $37,828 this year, outpacing Korea ($35,962) for the first time since 2003, and based on PPP, it has already far surpassed Korea.
This higher assessment of Taiwanese people's actual living standards is attributed to stable price levels. Korea's consumer price inflation is about 2%, while the average projection for Taiwan's consumer price inflation this year by eight major global investment banks (IBs) was 1.7% as of the end of September. Taiwan's international ranking this year is 12th, 23 spots higher than Korea.