Definition: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller.
Source: CIA World Factbook - Unless otherwise noted, information in this page is accurate as of January 1, 2012See also: GDP (purchasing power parity) map
De-jargoned: Purchasing Power Parity
Live Mint - 10/19/2014 4:01:53 PM
The genesis of this index, which didn’t start out as a serious economic data point, lies in the concept of purchasing power parity ... countries, but there are other more relevant calculations that economists rely on. PPP-adjusted gross domestic product ...
The 5 Richest Countries in the World
The Motley Fool - 10/11/2014 10:34:56 AM
Let's take a look at the globe's five richest countries -- as ranked by the International Monetary Fund's 2014 estimates for GDP per capita, adjusted for purchasing power parity -- and see why these leaders are so successful. 5: Norway, $56,222 per-capita ...
China ahead of US in purchasing power parity: IMF
Dawn - 10/13/2014 1:35:41 AM
The IMF used the PPP (GDP based on purchasing power parity) method to calculate the size of the two ... the IMF warned member countries that bold action was needed to bolster the global economic recovery. “The global economy remains on a cautious watch ...
China Is Now the World's Largest Economy Based on Purchasing Power Parity, Says the IMF
The Christian Post - 10/9/2014 4:35:13 PM
according to recent GDP data released by the International Monetary Fund. According the IMF, the purchasing power parity measure is a type of cross-country comparison that looks beyond the nominal value of money and focuses more on what you can actually ...
Purchasing Power Parity setting the price of your app based on local economies
blogs.msdn.com - 10/16/2014 7:30:03 AM
So a Dollar has more purchasing power in these countries than in the United States at the international exchange rate. And that is where the concept of Purchasing Power Parity (PPP) is born.That means that a “Tier 1″ In App Purchase (IAP) costs three ...
India, 20 others set up Asian Infrastructure Investment Bank
Zee News - 10/24/2014 12:57:00 PM
Beijing: India along with 20 other countries on Friday signed an agreement to ... over fixing the bench marks which were expected to be combination of GDP and Purchasing Power Parity (PPP). Based on this formula, India will be second largest share holder ...
IMF Says China World's Largest Economy, Sort Of
Breitbart News - 10/9/2014 11:59:02 PM
Using exchange rate driven GDP’s to compare living standards may understate the benefits that citizens in poor nations enjoy from access to cheaper goods and services. Purchasing Power Parity “conversion factor” is the number of units of a country's ...
China Overtakes US as World's Largest Economy in Purchasing Power
International Business Times - 10/9/2014 12:39:00 PM
China has finally surpassed the United States to become the world's largest economy, according to International Monetary Fund figures, which are based on GDP measured according to Purchasing Power Parity (PPP). With $17.6 trillion, China has surpassed the ...
Research and Markets: Global Economic Leading Indicators
Business Wire - 10/23/2014 4:08:28 AM
The combined GDP of the 43 countries with leading indicators accounted for 86% of the world's GDP in 2005, expressed in purchasing power parity (PPP) international dollars.
Here they come! China passes U.S. economy based on purchase power
Catholic Online - 10/9/2014 6:51:13 PM
Purchase power parity is "not quite the real thing." Before calculating for inflation, in 2013, the United States had a GDP of $16.8 trillion ... Hensley said that comparing PPP between countries, especially developing nations against developed nations ...
U.S. Earns Good Grades On Globabl Economic Report Card
Forbes - 10/20/2014 4:22:10 PM
For 10 years now the World Economic Forum (WEF) has published its annual competitiveness report, which assesses the strength of 144 countries ... GDP stands at around $16.8 trillion whereas China’s is $9.3 trillion. Based on purchasing power parity ...
China Overtakes US as the World's Biggest Economy: IMF
CRIENGLISH - 10/10/2014 12:30:39 PM
The US, by contrast, will make up 16.3%, or $17.4 trillion. Measuring GDP based on Purchasing Power Parity takes in to account the cost of living in individual countries rather than just their GDP per capita -- by comparing the cost of a basket of goods ...
IMF Forecasts China To Dethrone US As World’s Biggest Economy With $17.6T GDP
International Business Times - 10/10/2014 5:21:09 AM
In April, the World Bank pointed out at by the end of 2014, China's GDP purchasing power parity terms would exceed that of the ... China's growth during the crisis enable a number of other countries, particularly commodity-exporting economies, to ride ...
China is Coming Out on Top in the Global Economy
Economy Watch - 10/14/2014 11:53:06 PM
The numbers that define China as the leading economy in the world have been calculated using 'purchasing power parity', which allows for adjustments considering that some goods are cheaper in certain countries ... purchasing power. GDP reaches about ...
China Just Overtook The US As The World's Largest Economy by PPP
Pakistan Defence - 10/8/2014 5:02:03 AM
So the IMF measures both GDP in market exchange terms, and in terms of purchasing power. On the purchasing ... adjusts for purchasing power parity, explained here. The simple logic is that prices aren't the same in each country: A shirt will cost you ...