GDP (nominal) vs GDP (PPP)

Source International Monetary Fund World Economic Outlook (April - 2018)
Date26 May 2018

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, 178 have higher GDP in PPP basis and 13 have higher in nominal. For United States both are identical. 30 economies has higher ppp values by more than 3 times.

South Sudan has highest difference between PPP and nominal gdp calculation. GDP (PPP) of South Sudan is 6.53 times larger than GDP (nominal). South Sudan is followed by Egypt (5.1), Myanmar (4.9), Uzbekistan (4.6) and Azerbaijan (4.2). This value is lowest for Iceland (0.74).

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 16 economies which has ppp to nominal ratio is less than one (i.e, ppp value is less than nominal), 6 are among 12 richest and 9 are among 22 richest economies in nominal basis.

nominal vs ppp countries map
CodeNo Country/Economy PPP/Nom GDP (2017) GDP per capita (2017)
Nominal (B of $) PPP (B of Int. $)Nominal ($) PPP (Int. $)
NominalRankPPPRank NominalRankPPPRank
AFG21Afghanistan3.33020.88911269.553985881801,958173
ALB44Albania2.72913.18112435.9701224,58310512,50798
DZA12Algeria3.550178.28755632.904364,29210915,23785
AGO141Angola1.532124.20959190.290664,4081076,753130
ATG139Antigua and Barbuda1.5701.5241732.39317516,7025026,23258
ARG148Argentina1.443637.71721920.2492714,4675820,87666
ARM76Armenia2.44911.54813228.2821333,8611199,456114
AUT174Austria1.055416.84528439.5754547,2901549,86922
AZE5Azerbaijan4.22540.67090171.811734,14111317,49278
BHR103Bahrain2.01934.8959670.4399724,0293748,50523
BGD59Bangladesh2.629261.37443687.144321,6021504,211144
BRB176Barbados1.0455.0181535.24416617,8594518,66473
BLR22Belarus3.28754.43680178.906715,7609218,93172
BEL172Belgium1.068494.73325528.4583743,5822046,55325
BLZ127Belize1.7321.8541693.2111714,8061038,324120
BEN43Benin2.7429.23813925.3311388301672,277166
BTN30Bhutan3.0122.3341667.0301602,9031308,744117
BOL90Bolivia2.25137.1229583.550923,3531247,547124
BIH75Bosnia and Herzegovina2.47118.05811344.6221095,1499912,72496
BWA89Botswana2.26317.16811538.8571177,8778017,82876
BRA138Brazil1.5772,054.96983,240.31989,8956915,60384
BRN58Brunei Darussalam2.63212.74312533.53612529,7123178,1965
BGR54Bulgaria2.68956.94378153.138768,0647721,68764
BFA39Burkina Faso2.84612.56912835.7771236641781,889174
BDI80Burundi2.3533.3961607.990159312190735190
CPV94Cabo Verde2.1451.7411703.7351673,2381256,944127
KHM38Cambodia2.88722.25210964.2501031,3901574,012145
CMR63Cameroon2.61334.0069788.861881,4011563,660151
CAN170Canada1.0711,652.412101,769.2701745,0771848,26524
CAF125Central African Republic1.7491.9281683.373170387188677191
TCD37Chad2.8939.87213728.5571318101702,344164
CHL133Chile1.628277.04242451.0704415,0705724,53760
CHN110China1.92812,014.610223,159.10718,6437516,66082
COL85Colombia2.309309.19740714.004316,2738814,48590
COM104Comoros2.0140.6521831.3131807881721,588179
COD131Democratic Republic of the Congo1.65241.4418968.453100478184790189
COG15Republic of Congo3.3928.51314228.8751301,9581446,642131
CRI147Costa Rica1.44458.0567783.8529111,6856316,87781
CIV79Côte d'Ivoire2.40140.3609296.917851,6171493,883147
HRV114Croatia1.85954.51679101.3448413,1386024,42462
CYP145Cyprus1.48221.31011131.58812624,9763537,02337
CZE124Czech Republic1.762213.18949375.6794920,1524135,51240
DJI121Djibouti1.7902.0291673.6321681,9891423,559153
DMA152Dominica1.4020.5601840.7851837,9217911,102107
DOM87Dominican Republic2.29875.01870172.359727,3758216,94480
ECU112Ecuador1.883102.31163192.637656,0989011,482105
EGY2Egypt5.067237.073451,201.188212,50113512,67197
SLV102El Salvador2.03428.02310156.9911054,4001088,948116
GNQ41Equatorial Guinea2.83010.72513630.35212812,7276136,01739
ERI135Eritrea1.6145.8131509.3821569801641,581180
EST136Estonia1.60025.97310341.56411219,8404231,75044
ETH74Ethiopia2.47680.87467200.210648731652,161168
FJI129Fiji1.7035.0791528.6521575,740949,777113
FRA169France1.0982,583.56072,835.7461039,8692343,76129
GAB78Gabon2.41515.20612036.7271207,9727819,25470
GMB10The Gambia3.5701.0091783.6021694801831,713177
GEO62Georgia2.62215.13912139.6961164,09911410,747108
DEU165Germany1.1323,684.81644,170.790544,5501950,42518
GHA40Ghana2.84447.03287133.742791,6631484,729141
GRC144Greece1.488200.69053298.6785618,6374327,73753
GRD150Grenada1.4401.1151771.60617710,3606814,92687
GTM117Guatemala1.82175.66169137.804774,4721068,145123
GIN47Guinea2.7239.72113826.4671367491752,041171
GNB82Guinea-Bissau2.3241.3501753.1371727941711,845175
GUY126Guyana1.7333.6281596.2871644,7101048,161122
HTI84Haiti2.3158.60814119.9301447841731,815176
HND105Honduras2.01122.97510846.1981082,7661325,562138
HKG158Hong Kong SAR1.331341.65934454.9124346,1091661,39311
HUN111Hungary1.898152.28458288.9905915,5315529,47449
IND8India3.6232,611.01269,459.00231,9831437,183126
IDN26Indonesia3.1941,015.411163,242.77173,87611812,377100
IRN7Islamic Republic of Iran3.808431.920271,644.705185,3059820,20067
IRQ20Iraq3.332197.69954658.791345,08810016,95479
IRL171Ireland1.069333.99435357.1635170,638575,5386
ITA163Italy1.1921,937.89492,310.9021231,9842738,14035
JAM119Jamaica1.81514.35912226.0631375,0481019,163115
JPN166Japan1.1144,872.13535,428.813438,4402542,83230
JOR92Jordan2.20140.4879189.096875,6789512,49499
KAZ32Kazakhstan2.969160.83957477.593428,8417426,25257
KEN99Kenya2.05279.51168163.136741,7021473,491154
KIR164Kiribati1.1470.1971900.2261891,7211461,976172
KOR159Korea1.3191,538.030112,029.0321429,8913039,43432
UVK50Kosovo2.7107.24314719.6271453,88011710,515109
KWT77Kuwait2.422120.35160291.4805827,3193366,1639
KGZ25Kyrgyz Republic3.2077.16314822.9711401,1441613,667150
LAO35Lao P.D.R.2.89716.98411649.2061072,5421347,366125
LVA123Latvia1.77830.3199953.90910615,5475427,64454
LBN128Lebanon1.70451.4578287.6769011,4096419,43969
LSO71Lesotho2.5132.7681646.9551611,4251553,581152
LBR115Liberia1.8573.2851626.0991657291761,354184
LBY98Libya2.05531.3319864.3961024,8591029,986110
LTU109Lithuania1.93147.2638691.2448616,7304832,29943
LUX178Luxembourg1.00562.3937362.730104105,8031106,3743
MAC149Macao SAR1.44149.8028371.7789577,4513111,6292
MKD46FYR Macedonia2.72411.36613430.9641275,4749614,91488
MDG14Madagascar3.46611.46313339.7321144481851,551182
MWI9Malawi3.6056.20614922.3731413241891,167187
MYS33Malaysia2.959314.49738930.750269,8137029,04150
MDV142Maldives1.5294.5051566.88716212,5276219,15171
MLI55Mali2.67715.31811941.0001138111692,170167
MLT140Malta1.53912.54312919.30714627,2503441,94531
MRT17Mauritania3.3725.11615117.2511501,3181584,444143
MUS91Mauritius2.20912.42813027.4591349,7947121,64065
MEX95Mexico2.1391,149.236152,458.357119,3047319,90368
FSM173Micronesia1.0610.3271870.3471873,2001263,393156
MDA73Moldova2.4838.08514420.0771432,2801375,661136
MNG11Mongolia3.56611.13513539.7041153,64012012,97994
MNE83Montenegro2.3194.76415511.0491557,6478117,73677
MAR48Morocco2.719109.82461298.572573,1511278,567119
MOZ36Mozambique2.89712.68112736.7341194291871,244186
MMR3Myanmar4.94066.53772328.709531,2641596,244132
NAM97Namibia2.09012.68712626.5111355,4139711,312106
NRU153Nauru1.3950.1141910.1591918,5757612,002102
NPL23Nepal3.21124.47210578.591938341662,679162
NLD168Netherlands1.109825.74518916.0782848,3461353,63515
NIC56Nicaragua2.65013.72712336.3821212,2071385,849134
NER57Niger2.6468.25314321.8361424401861,164188
NGA31Nigeria2.973376.284311,118.756241,9941415,929133
OMN72Oman2.51274.27471186.6126917,9734445,15726
PAK13Pakistan3.477303.993411,056.987251,5411515,358140
PAN130Panama1.68061.83874103.8938215,0895625,35159
PNG160Papua New Guinea1.28423.61710730.3321292,8611313,675149
PRY86Paraguay2.30729.61910068.3261014,2601109,826112
PER107Peru1.972215.22448424.385466,7628413,33493
PHL42Philippines2.794313.41939875.572292,9761298,315121
POL96Poland2.136524.886241,121.0092313,8235929,52148
PRT151Portugal1.437218.06447313.4375521,1613930,41747
PRI162Puerto Rico1.22598.80564121.0058030,4882937,33936
QAT100Qatar2.048166.32656340.6405260,8047124,5291
ROU88Romania2.278211.31550481.4534110,7576524,50861
RUS61Russia2.6241,527.469124,007.831610,6086627,83452
RWA53Rwanda2.6959.13714024.6251397721742,080170
WSM155Samoa1.3500.8401811.1341824,2531115,740135
SMR161San Marino1.2541.6361722.05217647,4061459,46613
STP122São Tomé and Príncipe1.7840.3791860.6761851,7851453,180159
SAU64Saudi Arabia2.594683.827191,773.5511621,1204054,77714
SEN60Senegal2.62716.46311843.2411101,0381622,727161
SRB67Serbia2.54341.47188105.451815,8999115,00086
SYC116Seychelles1.8341.4821742.71817315,6865328,77951
SLE27Sierra Leone3.1603.64115811.5041534911821,553181
SGP134Singapore1.627323.90237527.0213857,713993,9054
SVK113Slovak Republic1.87095.93865179.3657017,6644633,02542
SVN146Slovenia1.45548.8688471.0819623,6543834,40741
SLB177Solomon Islands1.0371.2771761.3241792,0811402,157169
ZAF93South Africa2.192349.29933765.568306,1808913,54592
SSD1South Sudan6.5302.87016318.7411472281911,489183
ESP154Spain1.3501,313.951141,773.9061528,3593238,28634
LKA28Sri Lanka3.13687.59166274.718614,08511512,81195
KNA132St. Kitts and Nevis1.6470.9281791.52817816,2965126,84556
LCA143St. Lucia1.5041.6861712.5361749,6077214,45091
VCT137St. Vincent and the Grenadines1.5810.8011821.2661817,2718311,491104
SDN24Sudan3.21158.23976187.030681,4281544,586142
SUR68Suriname2.5423.3471618.5081585,7469314,60689
SWZ70Swaziland2.5254.49115711.3381543,9151169,884111
TWN101Taiwan Province of China2.046579.302221,185.4802224,5773650,29420
TJK6Tajikistan3.8997.27914628.3821328241683,212158
TZA29Tanzania3.13551.72581162.166751,0341633,240157
THA51Thailand2.709455.378261,233.737206,5918717,85675
TLS65Timor-Leste2.5872.6101656.7531632,1041395,444139
TGO49Togo2.7154.76715412.9431516111791,659178
TON156Tonga1.3430.4371850.5871864,1771125,608137
TTO106Trinidad and Tobago1.98921.62411043.01411115,7695231,36745
TUN19Tunisia3.36240.27593135.416783,49612311,755103
TUR66Turkey2.558849.480172,173.2271310,5126726,89355
TKM45Turkmenistan2.72937.92694103.491836,6438618,12674
TUV175Tuvalu1.0500.0401920.0421923,6381213,807148
UGA18Uganda3.36526.34910288.673896991772,354163
UKR16Ukraine3.373109.32162368.784502,5831338,713118
ARE118United Arab Emirates1.820377.43530686.8313337,2262667,7418
GBR167United Kingdom1.1102,624.52952,914.042939,7352444,11828
USA179United States1.00019,390.600119,390.600259,501859,50112
URY157Uruguay1.33858.4157578.1489416,7224922,37163
UZB4Uzbekistan4.64847.88385222.560631,4911526,929128
VEN120Venezuela1.812210.08551380.743476,6848512,114101
VNM34Vietnam2.937220.40846647.369352,3541366,913129
YEM81Yemen2.33816.51111738.5951185511811,287185
ZMB52Zambia2.70125.50410468.885991,4801533,996146
ZWE108Zimbabwe1.94217.49111433.9591241,1761602,283165
AUS187Australia0.9041,379.548131,246.4751955,7071150,33419
BHS180The Bahamas0.99611.63913111.59615231,2552831,13946
DNK190Denmark0.884324.48436286.7666056,4441049,88321
FIN182Finland0.963253.24444243.9756246,0171744,33327
ISL192Iceland0.73723.90910617.62314970,332651,84216
ISR188Israel0.903350.60932316.4855440,2582236,34038
MHL184Marshall Islands0.9500.1991890.1891903,6251223,439155
NZL185New Zealand0.936201.48552188.6036741,5932138,93433
NOR183Norway0.959396.45729380.0064874,941471,8317
PLW186Palau0.9330.3121880.29118817,0964715,93483
SWE181Sweden0.967538.57523520.9373953,2181251,47517
CHE191Switzerland0.762678.57520517.1724080,591261,42210
VUT189Vanuatu0.8850.8701800.7701843,0941282,739160
SOM69Somalia2.5287.382 14518.659148- ---
SYRSyria--- ---- --
World 1.59179,865 127,044 10,827 17,222