The Atlas method, employed by the World Bank since 1993, is utilized to estimate the economic size of nations in terms of their gross national income (GNI) in U.S. dollars.
To convert a country's GNI from its local currency into U.S. dollars, the Atlas conversion factor is employed. This factor incorporates a three-year average of exchange rates to mitigate the impact of temporary fluctuations in exchange rates. Additionally, it adjusts for the variance in inflation rates between the country in question (using its GDP deflator) and several developed nations (employing a weighted average of their GDP deflators in SDR terms). The resulting GNI in U.S. dollars is then divided by the country's midyear population to determine the GNI per capita.[1]
The World Bank favors the Atlas method as a means of comparing the relative economic sizes of countries. It is utilized to classify nations into low, middle, and high-income categories, as well as to establish eligibility for lending purposes. By employing this method, the World Bank aims to minimize abrupt changes in country classification caused by short-term fluctuations.
Comparison of GNI (Atlas method) and GNI 2016 World Bank (millions of current US$)
atlas, method, employed, world, bank, since, 1993, utilized, estimate, economic, size, nations, terms, their, gross, national, income, dollars, convert, country, from, local, currency, into, dollars, atlas, conversion, factor, employed, this, factor, incorpora. The Atlas method employed by the World Bank since 1993 is utilized to estimate the economic size of nations in terms of their gross national income GNI in U S dollars To convert a country s GNI from its local currency into U S dollars the Atlas conversion factor is employed This factor incorporates a three year average of exchange rates to mitigate the impact of temporary fluctuations in exchange rates Additionally it adjusts for the variance in inflation rates between the country in question using its GDP deflator and several developed nations employing a weighted average of their GDP deflators in SDR terms The resulting GNI in U S dollars is then divided by the country s midyear population to determine the GNI per capita 1 The World Bank favors the Atlas method as a means of comparing the relative economic sizes of countries It is utilized to classify nations into low middle and high income categories as well as to establish eligibility for lending purposes By employing this method the World Bank aims to minimize abrupt changes in country classification caused by short term fluctuations Comparison of GNI Atlas method and GNI2016 World Bank millions of current US No Country GNI Atlas method 2 GNI 3 Difference 1 United States 18 357 322 18 968 714 611 392 2 China 11 374 227 11 154 194 220 033 3 Japan 4 816 892 5 096 371 279 479 4 Germany 3 624 638 3 536 579 88 058 5 United Kingdom 2 778 488 2 587 657 190 831 6 France 2 590 030 2 504 684 85 346 7 India 2 212 306 2 235 524 23 218 8 Italy 1 923 095 1 863 085 60 011 9 Brazil 1 835 993 1 758 527 77 466 10 Canada 1 584 177 1 508 495 75 682See also editList of countries by GNI nominal per capita World Bank high income economyReferences edit The Atlas Method Archived 2016 03 03 at the Wayback Machine World Bank GNI Atlas method current US World Bank GNI current US World Bank Retrieved from https en wikipedia org w index php title Atlas method amp oldid 1162971800, wikipedia, wiki, book, books, library,
