South Korea’s Big Mac Index ranks sixth highest in Asia. The Big Mac Index is a measure that converts the price of a Big Mac sold at McDonald’s outlets in various countries into US dollars. It is used to gauge a country’s currency value and exchange rate. The British economic weekly, The Economist, has been publishing it since 1986.
According to The Economist on the 6th, the Korean Big Mac Index was recorded as $4.11 as of January. This is a 0.74% increase from the Big Mac Index of $4.08 in late July last year.
The Korean won was found to be undervalued by 27.8% compared to the dollar. If a country’s Big Mac Index is higher than that of the US, it indicates that the country’s currency is overvalued, and if it is lower, it is undervalued. The US Big Mac Index is $5.69.
In this survey, the Korean Big Mac Index ranked sixth among Asian countries, following Sri Lanka at $5.69, Saudi Arabia at $5.07, Singapore at $4.96, United Arab Emirates (UAE) at $4.90, and Kuwait at $4.55.
Switzerland’s Big Mac Index was the highest in the world. The Swiss Big Mac Index was $8.17, which is 43.5% overvalued compared to the US dollar. This was followed by Norway at $7.14 in second place, Uruguay at $7.04 in third place, Sweden at $5.87 in fourth place, and Eurozone at $5.87 in fifth place, all of which had currencies overvalued compared to the US dollar.
On the other hand, Taiwan’s Big Mac Index was the lowest in the world. The Taiwanese Big Mac Index was $2.39, which is 58.0% undervalued compared to the US. This was followed by Indonesia at $2.43, India at $2.59, South Africa at $2.71, and Egypt at $2.75, all of which had currencies undervalued compared to the dollar.
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