Big Mac Index by Country 2023 - Wisevoter (2024)

Introduction

The Big Mac index is a widely recognized and well-known index that compares the price of a Big Mac hamburger in different countries. The index was created by The Economist magazine in 1986 as a lighthearted way to measure the purchasing power parity (PPP) between countries. The Big Mac index has been updated on a regular basis by The Economist, providing a snapshot of the state of the global economy and currency markets.

The idea behind it is that a Big Mac, as a globally recognized fast food item, should cost roughly the same in any country. The Big Mac Index is not a perfect measure of PPP as it only takes into account one item and does not consider other aspects such as the cost of housing, transportation, and healthcare. However, it provides a general overview of the relative affordability of goods and services in different countries. In other words, while the Big Mac index is not an official measure of PPP, it has become a widely used and recognized tool for comparing the value of currencies.

Many economists and financial experts have criticized the Big Mac index for its limitations, but it remains a popular and widely cited tool for measuring currency values and comparing the purchasing power of different countries. And while the index should not be taken too seriously, it provides an interesting and fun way for people to understand the relative value of different currencies and the purchasing power of different countries, and as such, makes economics more accessible and attractive to a wider audience.

Big Mac Index and Price by Country

Big Mac Prices Over the Years

The average price of a Big Mac has varied greatly over the years and across different countries. According to the Big Mac Index published by The Economist, which tracks the price of a Big Mac in various countries, the global average price of a Big Mac was around $2.50 in the early 1980s. By the early 2000s, the average price had increased to around $2.70. In recent years, the average price has continued to rise, with the global average price reaching around $3.80 in 2021.

The price of a Big Mac has also varied significantly across different countries. In some countries, such as Indonesia and South Africa, the Big Mac is significantly cheaper than the global average, at a price of $2.34 per Big Mac sandwich. In other countries, such as Switzerland and Norway, the Big Mac is much more expensive than the global average, with prices surpassing $6. This variation is largely due to differences in factors such as local labor costs, taxes, and currency exchange rates.

Overall, the price of a Big Mac has generally increased over the years, but the degree of increase and the actual price vary widely across different countries.

Big Mac Prices Around the World

The Big Mac, a burger made by McDonald’s, is one of the most popular fast food items in the world whose price can greatly vary depending on the country where it is purchased. The cost of a Big Mac can be influenced by many factors such as the cost of living, inflation, currency exchange rates, and the purchasing power of the local population.

In some countries, a Big Mac can be purchased for as little as $2. On the other hand, in other countries, the same burger can cost upwards of $6. For example, in the United States, the average cost of a Big Mac is around $5, while in Norway, it can cost more than $6. This difference can be attributed to the higher cost of living and inflation in Norway, as well as the strength of the Norwegian krone compared to the US dollar.

According to the latest Big Mac index, the most expensive Big Mac can be found in Switzerland, where it costs $6.71. In comparison, the cheapest Big Mac can be found in Venezuela, where it costs only $1.76. The difference in price between the two countries is a clear indication of the differences in purchasing power between Switzerland and Venezuela.

Big Mac Price by Country

When it comes to the cost of a Big Mac around the world, it is clear that Big Mac Prices vary greatly from country to country. Switzerland tops the list with the most expensive Big Mac, at $6.71 per sandwich. This is followed by Norway at $6.26 and Uruguay at $6.08 respectively. Sweden and Canada come after them in fourth and fifth place for the highest Big Mac prices by country, at $5.59 and $5.25 respectively, while the United States of America follows in sixth place with a slightly lower cost of $5.15 per Big Mac sandwich. The seventh, eighth, and ninth countries with the highest Big Mac prices by country are Lebanon, Israel, and the United Arab Emirates, with a cost of $5.08, $4.95, and $4.9 per Big Mac sandwich respectively.

The next 25 countries with the highest Big Mac price by country are all European countries, which all have the same price for a Big Mac – at a cost of $4.77 for a Big Mac sandwich. These 25 countries are Andorra, Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Portugal, Saint Pierre and Miquelon, Saint-Barthélémy, San Marino, Slovakia, Slovenia, Spain, and Vatican City.

There are, however, some large differences between countries located in different parts of the world when it comes to Big Mac prices – such as those located in South America being much cheaper than those found in Europe or North America for example – which could be explained by factors like availability or demand for certain ingredients used in making McDonalds’ products, as well as other external factors like currency exchange rates or taxes on imported goods, beyond the straightforward explanation in a disparity in Big Mac index score and therefore also in PPP.

Big Mac Index

The Big Mac Index is an economic indicator created by The Economist in 1986. The index uses the price of a Big Mac hamburger to compare the purchasing power of different currencies around the world. The idea is that since the Big Mac is a standardized product sold in almost every country, its price can be used to determine the relative value of currencies. In other words, if the price of a Big Mac is higher in one country than in another, it suggests that the currency in the first country is overvalued.

To read the Big Mac Index, you simply compare the price of a Big Mac in different countries and convert it to a common currency, usually US dollars. For example, if a Big Mac costs $5 in the US and 5 euros in France, the exchange rate implied by the Big Mac Index is 1 euro = $1. The index is published annually by The Economist and is available for free on their website. It includes data for around 50 countries and is considered a fun way to understand global economics.

It is worth noting that the Big Mac Index is not a perfect measure of currency values. Big Mac prices are affected by factors such as local labor costs, rent, and taxes, which can vary greatly from country to country. Also, the index does not take into account non-traded goods and services, such as housing, which can be significant factors in the overall cost of living. Nevertheless, the Big Mac Index is a useful and entertaining tool for gaining insights into international economics.

Big Mac Index by Country

When comparing the Big Mac Index differences between the US price and other countries, it is apparent that there are substantial disparities in the prices of Big Macs around the world. For example, the price of a Big Mac in India is 53.6% lower than in the United States, whereas in Switzerland, it is over 30% higher. This means that the purchasing power of the US dollar is higher in India than in Switzerland. It is worth noting that the exchange rate between the two currencies is not the only factor affecting the Big Mac Index differences, as various other factors such as taxes, wages, and rent also play a significant role, but it does give a broad representation of the PPP disparity between these countries.

Looking at the countries with the highest Big Mac Index by country, we can see that out of the 78 countries in the world represented in the Big Mac Index, only five have a higher Big Mac Index than the United States. According to recent data from The Economist magazine, the top five countries with the highest Big Mac index by country are Switzerland, Norway, Uruguay, Sweden and Canada. Switzerland tops the list of countries with the highest Big Mac Index, with a 30.33% percentage difference, followed by Norway with 21.63%, Uruguay at 18.15%, Sweden at 8.53% and finally Canada with 1.97%.

The next three countries with the highest Big Mac Index by country have indexes below that of the US, at -1% percentage difference in the cost of a Big Mac for Lebanon, -3.97% for Israel, and -4.84% for the United Arab Emirates. The next countries with the highest Big Mac Index all have a percentage difference of -7.47% of the US average price for a Big Mac – these countries are Andorra, Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Portugal, Saint Pierre and Miquelon, Saint-Barthélémy, San Marino, Slovakia, Slovenia, Spain, and Vatican City.

Finally, the countries with the lowest Big Mac Index in the world are Turkey, Hungary, Taiwan, Malaysia, Egypt, India, Indonesia, South Africa, Romania and Venezuela. In Turkey, the Big Mac Index is 48.04% lower than that of the US, while in Hungary a Big Mac costs -48.59% of the US price. In Taiwan, the price for a Big Mac is -51.31% lower than the US average, while Malaysia’s is at -52.44% of the average US Big Mac price. In Egypt, the Big Mac index is at -52.85%, and in India -53.61% compared to the US Big Mac Index. Additionally, Indonesia experiences a Big Mac Index at -54.62%, South Africa’s Big Mac Index is at -54.52%, and Romania’s Big Mac Index is -55.70%. Finally, the country with the lowest Big Mac Index in the world is Venezuela, with a Big Mac Index at -65.77%.

Most Expensive Big Mac

Switzerland is well known for its high quality of living and exorbitant prices, and this holds true for the country’s Big Macs as well. At $6.71 per sandwich, Switzerland has the most expensive Big Mac in the world. This is almost double the price of a Big Mac in South Korea or Thailand, where it only costs around $3.50. According to the Big Mac Index by The Economist, that means that Switzerland’s Big Mac Index is 30.33% what the price of a Big Mac is in the US. As for why Swiss Big Macs are so costly, some attribute it to higher labor costs combined with comparatively lower purchasing power due to a strong Swiss Franc. Furthermore, food imports from other countries are subject to more taxes, making Swiss products relatively more expensive than their global counterparts. All these factors contribute to making Switzerland’s Big Macs among the most expensive in the world.

Cheapest Big Mac in the World

Venezuela is home to the world’s most affordable Big Mac: at just $1.76 per sandwich, it is a fraction of the cost of what most other countries pay for the famous fast-food item, and means that Venezuela’s Big Mac Index is at -65.77% of the Big Mac Index of the US. The low cost of the Big Mac in Venezuela can be attributed largely to its faltering economy, which has been suffering from hyperinflation and currency devaluation. This has had a drastic effect on prices for all goods, including food items like the Big Mac. Despite this fact, McDonald’s restaurants remain popular throughout the country, with long lines seen outside some locations on busy days as people wait for their turn to order.