Gross domestic product – per capita at PPP

This table shows gross domestic product (GDP) growth at market prices at PPPs.

The GDP is the final result of the production activity of resident producer units.
It can be defined in three ways:
a) GDP is the sum of gross value added by the various institutional sectors or industries of the economy plus taxes and less subsidies on products (which are not allocated to separate sectors and industries). It is also the balancing item in the total economy production account.
b) GDP is the sum of final uses of goods and services by resident institutional units (final consumption expenditure and gross capital formation), plus exports and minus imports of goods and services.
c) GDP is the sum of uses in the total economy generation of income account (compensation of employees, taxes on production and imports less subsidies, gross operating surplus and mixed income of the total economy).

Direct quantitative comparisons between economic situations that have little in common with each other are inherently difficult and the method of deflation of current values with price indices is therefore the best alternative. This applies even more in international than in intertemporal comparisons. By careful specification and identification of products, price relatives can be calculated from information collected in price surveys in each country. As prices are quoted in national currencies, the interpretation of the price relatives introduces the concept of Purchasing Power Parity (PPP). For a given product the PPP between two currencies of countries A and B is defined as the number of units of country B’s currency that are needed in country B to purchase the same quantity of the product as one unit of country A’s currency will purchase in country A. PPPs for groups of products and successively higher levels of aggregation up to GDP are obtained by weighting PPPs for products by their share in expenditure. In order to arrive at a price level index between the two countries, the PPP index has to be divided by the current exchange rate between the two currencies concerned.

European Commission.

Gross Domestic Product per Capita at PPP, GDP per capita, Purchasing Power Parities.