This article examines whether Gross Domestic Product (GDP) or Personal Disposable Income (PDI) is the more appropriate denominator for cross-country comparisons of household sector indicators, comparing Singapore with five other countries: Australia, Canada, Germany, Japan, and the USA – as a case study.
It explores how the choice of denominator can affect the conclusions drawn from such comparisons, and how Singapore's household assets and liabilities are reflected when viewed through each lens, with implications for policy analysis and international benchmarking.