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 in the year noted. 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 differences between the OER- and PPP-denominated GDP values for most of the wealthy industrialized countries are generally much smaller.
Source: CIA World Factbook - Unless otherwise noted, information in this page is accurate as of January 1, 2019
See also: GDP (purchasing power parity) mapRelated News
Purchasing Power Parity: Weights Matter
International Monetary Fund - 6/7/2019 4:46:00 PM
The IMF, one of these institutions, publishes many of its statistics—such as real GDP growth ... The other uses the purchasing power parity (PPP) exchange rate—the rate at which the currency of one country would have to be converted into that of ...
When people in the world’s 10 richest economies aren’t so well off, is GDP a meaningful measure?
South China Morning Post - 11/14/2020 2:41:00 AM
The latest World Bank research highlights the inadequacy of GDP to assess wealth, compared with the money in people’s pockets. If environmental factors and the impact of inequality were included, the top 10 list might look different.
China to Leapfrog 56 Nations During Quarter-Century Income Surge
Bloomberg - 11/17/2020 10:19:00 PM
Overall, developing Asian countries will see per-capita GDP rise sixfold ... per-capita GDP growth based on purchasing power-parity-terms Persian Gulf nations, among the world’s richest at ...
What Country Has the Wealthiest Overall Population?
Investopedia - 11/13/2020 12:00:00 AM
When it comes to determining the richest populations in the world, these are the five countries ... the GDP per capita is interpreted using a purchasing power parity basis in current international ...
10 Richest Countries in the World
24/7 Wall St - 11/12/2020 4:54:00 PM
To determine the richest countries in the world, 24/7 Wall St. reviewed data on GNI per capita for 194 countries and special regions with available data from the World Bank. The World Bank estimates GNI per capita using the purchasing power parity method,
GDP per capita rises to $9,000
VN Express - 11/11/2020 8:12:00 AM
The GDP per capita at purchasing power parity metric is used by analysts to compare economic productivity and standards of living between countries by taking into account respective exchange rates. Data from the World Bank shows that this metric in Vietnam ...
10 Poorest Countries in the World
MSN - 11/11/2020 6:07:00 PM
Such severe privation is disproportionately concentrated in certain parts of the world ... using purchasing power parity and are in current international dollars. Though some of these countries ...
