statisticstimes

GDP (Nominal) vs GDP (PPP)

SourceIMF World Economic Outlook (October-2019)
Date28 Nov 2019

GDP (Gross Domestic Product) is the total market value of all final goods and services produced in a country in a given period. Each country reports its data in its own currency. To compare the data, each country's statistics must be converted into a common currency. The two most common methods to convert GDP into a common currency are nominal and purchasing power parity (PPP).

Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons. It is the original concept of GDP. In Nominal method, market exchange rates are used for conversion. It does not take into account differences in the cost of living in different countries. Fluctuations in the exchange rates of the country's currency may change a country's ranking from one year to the next, even though they often make little or no difference to the standard of living of its population.

PPP basis arguably more useful when comparing differences in living standards between nations. A haircut in New York is more expensive than in Lima; the price of a taxi ride of the same distance is higher in Paris than in Tunis; and a ticket to a cricket game costs more in London than in Lahore. PPP is an exchange rate at which the currency of one country is converted into that of the second country in order to purchase the same volume of goods and services in both countries. If a hamburger is selling in London for £2 and in New York for $4, this would imply a PPP exchange rate of 1 pound to 2 U.S. dollars. PPP exchange rates are relatively stable over time. Drawbacks of PPP is that PPP is harder to measure than nominal.

Out of 192 countries/economies, 179 have higher GDP in PPP basis and 12 have higher in nominal. For United States both are identical.

South Sudan has highest difference between PPP and nominal gdp calculation. GDP (PPP) of South Sudan is 5.82 times greater than GDP (nominal). South Sudan is followed by Sudan (5.70) and Myanmar (5.39) having ppp to nominal ratio above five. Five countries have this ratio between 4-5 and 34 economies has higher ppp values by above 3 times. This value is lowest for Switzerland (0.79).

There is a large gap between nominal and PPP based GDP in emerging market and developing countries. But for advanced countries, difference is much closer. Out of 12 economies which have ppp to nominal ratio less than one (i.e, ppp value is less than nominal), 6 are among 11 richest and 8 are among 21 richest economies in nominal basis.

nominal vs ppp map
nominal vs ppp map thumbnail
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nominal vs ppp chart
nominal vs ppp chart thumbnail
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Nominal vs PPP
Rank Country/Economy PPP/Nom GDP (2019) GDP per capita (2019)
Nominal (B of $) PPP (B of Int. $) Nominal ($) PPP (Int. $)
NominalRankPPPRank NominalRankPPPRank
8Afghanistan4.08318.73411676.4861005131832,095176
68Albania2.60415.41812240.1511225,37310213,99198
10Algeria3.944172.78155681.396363,98011815,69688
95Angola2.22391.52765203.433673,0381336,752133
136Antigua and Barbuda1.6201.6881742.73517418,1094929,34656
105Argentina2.028445.46929903.542299,8887120,05573
76Armenia2.44813.44413032.9091314,52810911,083111
141Aruba1.5462.9031654.48716825,9763740,14837
174Austria1.071447.71827479.3644550,0231453,55821
9Azerbaijan3.97047.17189187.260744,68910718,61678
106Bahrain2.01538.1849776.9519825,2733850,93123
62Bangladesh2.638317.46541837.588301,9061495,028143
176Barbados1.0475.1891545.43416718,0695018,92177
30Belarus3.12662.57277195.599716,6048920,64469
171Belgium1.096517.60925567.4883845,1762049,52925
127Belize1.7592.0011713.5201724,9251058,664123
45Benin2.83314.37412740.7171191,2171633,446159
39Bhutan2.8852.8421668.1991593,4231269,876112
94Bolivia2.22642.4019394.392913,6711238,172126
74Bosnia and Herzegovina2.47720.10611449.7941105,7429714,22095
83Botswana2.36118.69011744.1331177,8598318,55880
120Brazil1.8711,847.02093,456.36088,7977716,46286
40Brunei Darussalam2.88412.45513735.92012527,8713480,3846
69Bulgaria2.58466.25075171.185769,5187324,59564
38Burkina Faso2.89314.59312542.2221187181782,077177
85Burundi2.3463.5731618.384158310191727191
99Cabo Verde2.1492.0131704.3251693,5991247,729129
42Cambodia2.87826.73010676.934991,6211524,664145
67Cameroon2.61138.63296100.884871,5151543,955152
170Canada1.0981,730.910101,899.9401646,2131950,72524
125Central African Republic1.8362.3211684.262170448187823190
41Chad2.88011.02614131.7601338611712,481169
131Chile1.709294.23743502.8464315,3995926,31762
111China1.93114,140.160227,308.860110,0997019,50474
80Colombia2.388327.89540783.002326,5089015,54189
102Comoros2.0751.1791802.4461761,3501582,799164
144Costa Rica1.50161.0217991.6119212,0156318,03881
123Croatia1.85560.70280112.5898414,9506027,72960
146Cyprus1.49424.28010836.26812427,7203541,40734
134Czech Republic1.673246.95347413.1194723,2144138,83440
63Côte d'Ivoire2.63544.43991117.110821,6911514,457146
132Democratic Republic of the Congo1.69648.9948883.11294501184849189
116Djibouti1.8963.1661636.0041662,9361345,568139
151Dominica1.4320.5931850.8491848,3818012,008107
92Dominican Republic2.24989.47567201.266698,6297919,41175
118Ecuador1.879107.91461202.773686,2499311,743108
5Egypt4.603302.256421,391.260193,04713214,02396
103El Salvador2.07426.87110555.7311084,0081178,313125
82Equatorial Guinea2.38612.14213828.9701368,9277621,30067
31Eritrea3.0932.1101696.5261633431901,060188
142Estonia1.52431.03810047.30611123,5244035,85344
59Eswatini2.6724.65715612.4441544,17711411,161110
64Ethiopia2.63491.16666240.168639531672,511168
115Fiji1.9045.70815010.8681556,3809112,147106
166France1.1312,707.07073,061.1401041,7612247,22329
84Gabon2.34916.87711939.6481238,1128219,05776
44Georgia2.85115.92512045.3981154,28911312,227105
164Germany1.1503,863.34044,444.370546,5641853,56720
29Ghana3.12867.07774209.844642,2231436,956132
143Greece1.515214.01252324.1285719,9744430,25254
148Grenada1.4691.2381791.81917811,3816416,71784
117Guatemala1.88581.31869153.322774,6171088,705122
73Guinea2.48813.36813133.2651309811662,441172
70Guinea-Bissau2.5661.3971783.5851717861742,019178
129Guyana1.7314.1211587.1351615,2521039,094119
79Haiti2.3958.81914421.1241467841751,878179
100Honduras2.11724.44910751.7571092,5481385,395140
159Hong Kong SAR1.316372.98934490.8804449,3341564,92812
109Hungary1.950170.40756332.2255517,4635234,04645
11India3.8582,935.570511,325.67032,1721458,378124
19Indonesia3.3621,111.710163,737.48074,16411513,99897
27Iraq3.141224.46251705.059355,7389818,02582
173Ireland1.072384.94033412.7974877,771583,3995
21Islamic Republic of Iran3.208458.500261,470.660185,50610017,66283
163Italy1.2281,988.64082,442.7701232,9472840,47036
126Jamaica1.77515.70212127.8671375,4611019,692114
168Japan1.1155,154.48035,747.500440,8472445,54631
98Jordan2.20044.1729297.161894,3871129,649115
24Kazakhstan3.157170.32657537.664429,1397428,84957
110Kenya1.94098.60764191.263731,9981463,875153
157Kiribati1.3590.1841910.2501891,5751532,138175
152Korea1.4231,629.530122,319.5901431,4313044,74032
47Kosovo2.7747.99614722.1791444,44211112,322104
90Kuwait2.268137.59159312.1005929,2673366,3879
28Kyrgyz Republic3.1378.26114525.9151401,2931614,056150
34Lao P.D.R.3.03719.12711558.0911072,6701378,110127
130Latvia1.72835.0459860.56210618,1724831,40252
139Lebanon1.55958.5658391.286939,6557215,04991
55Lesotho2.7012.7411677.4031601,3391593,615156
107Liberia2.0083.2221626.4711647041801,414184
121Libya1.86433.0189961.5591055,0201049,358117
114Lithuania1.90553.64186102.1798619,2674636,70142
153Macao SAR1.40955.1368477.7009781,1523114,3632
13Madagascar3.66312.55013545.9741144641861,699181
20Malawi3.3467.52214825.1671423711891,240186
36Malaysia2.952365.303351,078.5402611,1376732,88149
145Maldives1.4985.7861498.66715715,5635823,31266
58Mali2.67417.64711847.1811139241692,471170
140Malta1.54714.85912422.98214330,6503147,40527
16Mauritania3.5065.65115119.8111481,3921564,881144
97Mauritius2.20014.39112631.66313411,3616524,99663
104Mexico2.0621,274.180152,627.8501110,1186920,86868
86Moldova2.33411.68813927.2821393,3001287,703130
17Mongolia3.46213.63712947.2171124,13311614,30994
88Montenegro2.3085.42415312.5161538,7047820,08472
48Morocco2.761119.04060328.651563,3451279,235118
57Mozambique2.69015.09312340.6001204841851,303185
3Myanmar5.38965.99476355.609521,2451626,707134
112Namibia1.92814.36812827.7071385,8429611,266109
172Nauru1.0830.1081920.1171918,270818,999121
23Nepal3.16729.81310494.419901,0481653,318162
169Netherlands1.114902.355171,005.2702852,3681258,34114
178New Zealand1.008204.67153206.2256540,6342540,94335
49Nicaragua2.75612.52813634.5311261,9191485,290141
50Niger2.7309.44314325.7801414051881,106187
51Nigeria2.725446.543281,216.800242,2221446,055137
54North Macedonia2.70412.67213334.2671276,0969516,48685
60Oman2.66276.60970203.9596617,7915147,36628
135Panama1.65168.53673113.1568316,2455726,82261
150Papua New Guinea1.45223.58711234.2571282,7421353,983151
81Paraguay2.38640.7149497.163885,6929913,584101
101Peru2.089228.98950478.303467,0478814,71992
43Philippines2.875356.814381,025.760273,2941299,471116
89Poland2.274565.854221,286.9202314,9026133,89146
149Portugal1.462236.40849345.5725423,0314233,66547
162Puerto Rico1.27099.91363126.9348031,5382940,06738
113Qatar1.907191.84954365.8355169,6886132,8861
46Republic of Congo2.83111.57614032.7681322,5341407,174131
93Romania2.243243.69848546.5864112,4836227,99859
61Russia2.6561,637.890114,349.420611,1636629,64255
35Rwanda2.97210.20914230.3461358251732,452171
156Samoa1.3670.9051831.2371824,5011106,152136
161San Marino1.3021.5911762.07217747,2801761,57513
77Saudi Arabia2.436779.289181,898.5101722,8654355,70416
56Senegal2.69823.94011064.6001041,4281553,853155
72Serbia2.51051.52387129.298797,3988718,56479
122Seychelles1.8591.6441753.05617317,0525331,69351
32Sierra Leone3.0934.22915713.0791505471821,690182
137Singapore1.613362.81836585.0553763,9879103,1814
119Slovak Republic1.874106.55262199.7227019,5484536,64043
147Slovenia1.47054.1548579.5919626,1703638,46241
177Solomon Islands1.0251.4401771.4761802,2471422,303173
91South Africa2.255358.83937809.034316,1009413,754100
1South Sudan5.8233.68116021.4351452751921,602183
154Spain1.3881,397.870131,940.5401529,9613241,59233
15Sri Lanka3.52186.56668304.826603,94711913,89799
133St. Kitts and Nevis1.6751.0321811.72917918,2464730,57853
160St. Lucia1.3081.9921722.60617511,0766814,49293
138St. Vincent and the Grenadines1.6060.8561841.3751817,7518612,454103
2Sudan5.70030.873101175.987757141794,072149
75Suriname2.4613.7741599.2891566,3119215,53290
175Sweden1.066528.92924563.8824051,2421354,62818
128São Tomé and Príncipe1.7510.4301870.7531851,9331473,387161
96Taiwan Province of China2.218586.104211,300.2102224,8283955,07817
7Tajikistan4.0918.15214633.3511298771703,589157
33Tanzania3.08062.22478191.631721,1051643,402160
65Thailand2.614529.177231,383.020207,7928520,36571
179The Bahamas1.00212.66413412.69115133,2612733,33348
14The Gambia3.6371.7731736.4481657551772,745165
87Timor-Leste2.3222.9381646.8231622,2631415,254142
53Togo2.7195.50215214.9621496711811,826180
158Tonga1.3320.4881860.6501864,8621066,486135
108Trinidad and Tobago1.99922.60711345.19311616,3665632,71550
12Tunisia3.85238.73295149.190783,28713012,661102
25Turkey3.155743.708192,346.580138,9587528,26458
66Turkmenistan2.61146.67490121.885817,8168420,41170
167Tuvalu1.1190.0421930.0471923,8351214,277147
18Uganda3.41630.666102104.756857701762,631167
52Ukraine2.721150.40158409.257503,5921259,775113
124United Arab Emirates1.839405.77131746.3503437,7502669,4358
165United Kingdom1.1412,743.59063,131.200941,0302346,82730
180United States1.00021,439.450121,439.450265,112865,11211
155Uruguay1.38559.9188282.9699517,0295423,58165
4Uzbekistan4.91460.49081297.222611,8321509,000120
37Vietnam2.944261.63746770.227332,7401368,066128
78Yemen2.41729.85510372.1711029431682,280174
22Zambia3.17423.94610975.9961011,3071604,148148
26Zimbabwe3.14212.81813240.2741218601722,702166
181Australia0.9921,376.260141,364.8402153,8251153,37922
190Denmark0.901347.17639312.8425859,7951053,88219
184Finland0.982269.65445264.7206248,8691647,97526
191Iceland0.83623.91811120.00314767,037756,06615
188Israel0.914387.71732354.1975342,8232139,12139
186Luxembourg0.96269.4537266.848103113,1961108,9513
182Marshall Islands0.9860.2201900.2171903,9251203,868154
187Micronesia0.9580.3811880.3651873,7181223,562158
183Norway0.983417.62730410.7134977,975476,6847
185Palau0.9690.2911890.28218816,7365516,23587
192Switzerland0.791715.36020565.6463983,717266,19610
189Vanuatu0.9060.9511820.8621833,2601312,957163
71Somalia 2.553 4.958155 12.66152 ----
6Pakistan 4.230 284.21444 1202.0925 1,388157 5,872138
Syria--- ---- --
World 1.63886,599 141,860 11,464 18,779