The Big Mac Index is a real and recognized index that compares the price of Big Macs by country compared to the US.
Created by the Economist magazine in 1986, the Big Mac Index was first used as a light-hearted method of measuring purchasing power.
Now, the Big Mac Index is an indicator of the state of the global economy and currency.
Big Macs in the United States cost around $5.15 a sandwich. The price does vary depending on the US region, so the Big Mac Index is an average of all the United States.
The Big Mac Index represents 78 countries. Of those, only five countries have a higher Big Mac Index than the US, including Switzerland, Norway, Uruguay, Sweden, and Canada.
Switzerland tops the Big Mac Index with a 30.33% difference from US prices, followed by Norway (21.63%), Uruguay (18.15%), Sweden (8.53%), and Canada (1.97%).
In Switzerland, a Big Mac costs $6.71 per Big Mac due to higher labor costs, lower purchasing power, and taxes.
The three countries with a high Big Mac Index but fall below the United States include Lebanon (-1), Israel (-3.97%), and the United Arab Emirates. (-4.84%).
McDonald's in Lebanon sells Big Macs at $5.08 a piece.
The countries that have a Big Mac Index difference of -7.47% 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.
The ten countries with the lowest Bic Mac Index include Turkey (-48.04 %), Hungary(-48.59%), Taiwan (-51.31%), Malaysia (-52.44%), Egypt (-52.85%), India (-53.61%), Indonesia (-54.62%), South Africa (-54.52%), Romania (-55.70%), and Venezuela (-65.77%).
McDonald's in Venezuela only charges $1.76 per Big Mac. The sandwich is so cheap because Venezuela is experiencing hyperinflation and currency devaluation.
