Atlas method

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The World Bank has used the Atlas method [1] since 1993 to estimate the economic size of countries based on their gross national income (GNI) in U.S. dollars.

To convert a country's GNI from its local currency to U.S. dollars, the Atlas method uses a conversion factor that averages exchange rates over three years. This helps reduce the impact of temporary exchange rate changes. Additionally, it adjusts for differences in inflation rates between the country (using its GDP deflator) and several developed countries (using a weighted average of their GDP deflators in Special Drawing Rights, or SDR, terms). The converted GNI in U.S. dollars is then divided by the country's midyear population to determine GNI per capita. [1]

The World Bank prefers the Atlas method for comparing the economic sizes of countries. It is used to categorize countries into low, middle, and high-income groups and to determine their eligibility for loans. This method helps avoid abrupt changes in country classification due to short-term economic fluctuations.

Comparison of GNI (Atlas method) and GNI
2016 World Bank (millions of current US$)
No.CountryGNI (Atlas method) [2] GNI [3] Difference
1Flag of the United States.svg  United States 18,357,32218,968,714-611,392
2Flag of the People's Republic of China.svg  China 11,374,22711,154,194220,033
3Flag of Japan.svg  Japan 4,816,8925,096,371-279,479
4Flag of Germany.svg  Germany 3,624,6383,536,57988,058
5Flag of the United Kingdom.svg  United Kingdom 2,778,4882,587,657190,831
6Flag of France.svg  France 2,590,0302,504,68485,346
7Flag of India.svg  India 2,212,3062,235,524-23,218
8Flag of Italy.svg  Italy 1,923,0951,863,08560,011
9Flag of Brazil.svg  Brazil 1,835,9931,758,52777,466
10Flag of Canada (Pantone).svg  Canada 1,584,1771,508,49575,682

See also

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References

  1. 1 2 "detailed methodology – World Bank Data Help Desk". The World Bank Atlas method. Retrieved 10 August 2024.
  2. "GNI, Atlas method (current US$)". World Bank.
  3. "GNI (current US$)". World Bank.