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 is 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 chart

Nominal vs PPP

Code Rank Country/Economy PPP/Nom GDP (2019) GDP per capita (2019)
Nominal (B of $) PPP (B of Int. $) Nominal ($) PPP (Int. $)
NominalRankPPPRank NominalRankPPPRank
AFG8Afghanistan4.08318.73411676.4861005131832,095176
ALB68Albania2.60415.41812240.1511225,37310213,99198
DZA10Algeria3.944172.78155681.396363,98011815,69688
AGO95Angola2.22391.52765203.433673,0381336,752133
ATG136Antigua and Barbuda1.6201.6881742.73517418,1094929,34656
ARG105Argentina2.028445.46929903.542299,8887120,05573
ARM76Armenia2.44813.44413032.9091314,52810911,083111
ABW141Aruba1.5462.9031654.48716825,9763740,14837
AUT174Austria1.071447.71827479.3644550,0231453,55821
AZE9Azerbaijan3.97047.17189187.260744,68910718,61678
BHR106Bahrain2.01538.1849776.9519825,2733850,93123
BGD62Bangladesh2.638317.46541837.588301,9061495,028143
BRB176Barbados1.0475.1891545.43416718,0695018,92177
BLR30Belarus3.12662.57277195.599716,6048920,64469
BEL171Belgium1.096517.60925567.4883845,1762049,52925
BLZ127Belize1.7592.0011713.5201724,9251058,664123
BEN45Benin2.83314.37412740.7171191,2171633,446159
BTN39Bhutan2.8852.8421668.1991593,4231269,876112
BOL94Bolivia2.22642.4019394.392913,6711238,172126
BIH74Bosnia and Herzegovina2.47720.10611449.7941105,7429714,22095
BWA83Botswana2.36118.69011744.1331177,8598318,55880
BRA120Brazil1.8711,847.02093,456.36088,7977716,46286
BRN40Brunei Darussalam2.88412.45513735.92012527,8713480,3846
BGR69Bulgaria2.58466.25075171.185769,5187324,59564
BFA38Burkina Faso2.89314.59312542.2221187181782,077177
BDI85Burundi2.3463.5731618.384158310191727191
CPV99Cabo Verde2.1492.0131704.3251693,5991247,729129
KHM42Cambodia2.87826.73010676.934991,6211524,664145
CMR67Cameroon2.61138.63296100.884871,5151543,955152
CAN170Canada1.0981,730.910101,899.9401646,2131950,72524
CAF125Central African Republic1.8362.3211684.262170448187823190
TCD41Chad2.88011.02614131.7601338611712,481169
CHL131Chile1.709294.23743502.8464315,3995926,31762
CHN111China1.93114,140.160227,308.860110,0997019,50474
COL80Colombia2.388327.89540783.002326,5089015,54189
COM102Comoros2.0751.1791802.4461761,3501582,799164
CRI144Costa Rica1.50161.0217991.6119212,0156318,03881
HRV123Croatia1.85560.70280112.5898414,9506027,72960
CYP146Cyprus1.49424.28010836.26812427,7203541,40734
CZE134Czech Republic1.673246.95347413.1194723,2144138,83440
CIV63Côte d'Ivoire2.63544.43991117.110821,6911514,457146
COD132Democratic Republic of the Congo1.69648.9948883.11294501184849189
DJI116Djibouti1.8963.1661636.0041662,9361345,568139
DMA151Dominica1.4320.5931850.8491848,3818012,008107
DOM92Dominican Republic2.24989.47567201.266698,6297919,41175
ECU118Ecuador1.879107.91461202.773686,2499311,743108
EGY5Egypt4.603302.256421,391.260193,04713214,02396
SLV103El Salvador2.07426.87110555.7311084,0081178,313125
GNQ82Equatorial Guinea2.38612.14213828.9701368,9277621,30067
ERI31Eritrea3.0932.1101696.5261633431901,060188
EST142Estonia1.52431.03810047.30611123,5244035,85344
SWZ59Eswatini2.6724.65715612.4441544,17711411,161110
ETH64Ethiopia2.63491.16666240.168639531672,511168
FJI115Fiji1.9045.70815010.8681556,3809112,147106
FRA166France1.1312,707.07073,061.1401041,7612247,22329
GAB84Gabon2.34916.87711939.6481238,1128219,05776
GEO44Georgia2.85115.92512045.3981154,28911312,227105
DEU164Germany1.1503,863.34044,444.370546,5641853,56720
GHA29Ghana3.12867.07774209.844642,2231436,956132
GRC143Greece1.515214.01252324.1285719,9744430,25254
GRD148Grenada1.4691.2381791.81917811,3816416,71784
GTM117Guatemala1.88581.31869153.322774,6171088,705122
GIN73Guinea2.48813.36813133.2651309811662,441172
GNB70Guinea-Bissau2.5661.3971783.5851717861742,019178
GUY129Guyana1.7314.1211587.1351615,2521039,094119
HTI79Haiti2.3958.81914421.1241467841751,878179
HND100Honduras2.11724.44910751.7571092,5481385,395140
HKG159Hong Kong SAR1.316372.98934490.8804449,3341564,92812
HUN109Hungary1.950170.40756332.2255517,4635234,04645
IND11India3.8582,935.570511,325.67032,1721458,378124
IDN19Indonesia3.3621,111.710163,737.48074,16411513,99897
IRQ27Iraq3.141224.46251705.059355,7389818,02582
IRL173Ireland1.072384.94033412.7974877,771583,3995
IRN21Islamic Republic of Iran3.208458.500261,470.660185,50610017,66283
ITA163Italy1.2281,988.64082,442.7701232,9472840,47036
JAM126Jamaica1.77515.70212127.8671375,4611019,692114
JPN168Japan1.1155,154.48035,747.500440,8472445,54631
JOR98Jordan2.20044.1729297.161894,3871129,649115
KAZ24Kazakhstan3.157170.32657537.664429,1397428,84957
KEN110Kenya1.94098.60764191.263731,9981463,875153
KIR157Kiribati1.3590.1841910.2501891,5751532,138175
KOR152Korea1.4231,629.530122,319.5901431,4313044,74032
UVK47Kosovo2.7747.99614722.1791444,44211112,322104
KWT90Kuwait2.268137.59159312.1005929,2673366,3879
KGZ28Kyrgyz Republic3.1378.26114525.9151401,2931614,056150
LAO34Lao P.D.R.3.03719.12711558.0911072,6701378,110127
LVA130Latvia1.72835.0459860.56210618,1724831,40252
LBN139Lebanon1.55958.5658391.286939,6557215,04991
LSO55Lesotho2.7012.7411677.4031601,3391593,615156
LBR107Liberia2.0083.2221626.4711647041801,414184
LBY121Libya1.86433.0189961.5591055,0201049,358117
LTU114Lithuania1.90553.64186102.1798619,2674636,70142
MAC153Macao SAR1.40955.1368477.7009781,1523114,3632
MDG13Madagascar3.66312.55013545.9741144641861,699181
MWI20Malawi3.3467.52214825.1671423711891,240186
MYS36Malaysia2.952365.303351,078.5402611,1376732,88149
MDV145Maldives1.4985.7861498.66715715,5635823,31266
MLI58Mali2.67417.64711847.1811139241692,471170
MLT140Malta1.54714.85912422.98214330,6503147,40527
MRT16Mauritania3.5065.65115119.8111481,3921564,881144
MUS97Mauritius2.20014.39112631.66313411,3616524,99663
MEX104Mexico2.0621,274.180152,627.8501110,1186920,86868
MDA86Moldova2.33411.68813927.2821393,3001287,703130
MNG17Mongolia3.46213.63712947.2171124,13311614,30994
MNE88Montenegro2.3085.42415312.5161538,7047820,08472
MAR48Morocco2.761119.04060328.651563,3451279,235118
MOZ57Mozambique2.69015.09312340.6001204841851,303185
MMR3Myanmar5.38965.99476355.609521,2451626,707134
NAM112Namibia1.92814.36812827.7071385,8429611,266109
NRU172Nauru1.0830.1081920.1171918,270818,999121
NPL23Nepal3.16729.81310494.419901,0481653,318162
NLD169Netherlands1.114902.355171,005.2702852,3681258,34114
NZL178New Zealand1.008204.67153206.2256540,6342540,94335
NIC49Nicaragua2.75612.52813634.5311261,9191485,290141
NER50Niger2.7309.44314325.7801414051881,106187
NGA51Nigeria2.725446.543281,216.800242,2221446,055137
MKD54North Macedonia2.70412.67213334.2671276,0969516,48685
OMN60Oman2.66276.60970203.9596617,7915147,36628
PAN135Panama1.65168.53673113.1568316,2455726,82261
PNG150Papua New Guinea1.45223.58711234.2571282,7421353,983151
PRY81Paraguay2.38640.7149497.163885,6929913,584101
PER101Peru2.089228.98950478.303467,0478814,71992
PHL43Philippines2.875356.814381,025.760273,2941299,471116
POL89Poland2.274565.854221,286.9202314,9026133,89146
PRT149Portugal1.462236.40849345.5725423,0314233,66547
PRI162Puerto Rico1.27099.91363126.9348031,5382940,06738
QAT113Qatar1.907191.84954365.8355169,6886132,8861
COG46Republic of Congo2.83111.57614032.7681322,5341407,174131
ROU93Romania2.243243.69848546.5864112,4836227,99859
RUS61Russia2.6561,637.890114,349.420611,1636629,64255
RWA35Rwanda2.97210.20914230.3461358251732,452171
WSM156Samoa1.3670.9051831.2371824,5011106,152136
SMR161San Marino1.3021.5911762.07217747,2801761,57513
SAU77Saudi Arabia2.436779.289181,898.5101722,8654355,70416
SEN56Senegal2.69823.94011064.6001041,4281553,853155
SRB72Serbia2.51051.52387129.298797,3988718,56479
SYC122Seychelles1.8591.6441753.05617317,0525331,69351
SLE32Sierra Leone3.0934.22915713.0791505471821,690182
SGP137Singapore1.613362.81836585.0553763,9879103,1814
SVK119Slovak Republic1.874106.55262199.7227019,5484536,64043
SVN147Slovenia1.47054.1548579.5919626,1703638,46241
SLB177Solomon Islands1.0251.4401771.4761802,2471422,303173
ZAF91South Africa2.255358.83937809.034316,1009413,754100
SSD1South Sudan5.8233.68116021.4351452751921,602183
ESP154Spain1.3881,397.870131,940.5401529,9613241,59233
LKA15Sri Lanka3.52186.56668304.826603,94711913,89799
KNA133St. Kitts and Nevis1.6751.0321811.72917918,2464730,57853
LCA160St. Lucia1.3081.9921722.60617511,0766814,49293
VCT138St. Vincent and the Grenadines1.6060.8561841.3751817,7518612,454103
SDN2Sudan5.70030.873101175.987757141794,072149
SUR75Suriname2.4613.7741599.2891566,3119215,53290
SWE175Sweden1.066528.92924563.8824051,2421354,62818
STP128São Tomé and Príncipe1.7510.4301870.7531851,9331473,387161
TWN96Taiwan Province of China2.218586.104211,300.2102224,8283955,07817
TJK7Tajikistan4.0918.15214633.3511298771703,589157
TZA33Tanzania3.08062.22478191.631721,1051643,402160
THA65Thailand2.614529.177231,383.020207,7928520,36571
BHS179The Bahamas1.00212.66413412.69115133,2612733,33348
GMB14The Gambia3.6371.7731736.4481657551772,745165
TLS87Timor-Leste2.3222.9381646.8231622,2631415,254142
TGO53Togo2.7195.50215214.9621496711811,826180
TON158Tonga1.3320.4881860.6501864,8621066,486135
TTO108Trinidad and Tobago1.99922.60711345.19311616,3665632,71550
TUN12Tunisia3.85238.73295149.190783,28713012,661102
TUR25Turkey3.155743.708192,346.580138,9587528,26458
TKM66Turkmenistan2.61146.67490121.885817,8168420,41170
TUV167Tuvalu1.1190.0421930.0471923,8351214,277147
UGA18Uganda3.41630.666102104.756857701762,631167
UKR52Ukraine2.721150.40158409.257503,5921259,775113
ARE124United Arab Emirates1.839405.77131746.3503437,7502669,4358
GBR165United Kingdom1.1412,743.59063,131.200941,0302346,82730
USA180United States1.00021,439.450121,439.450265,112865,11211
URY155Uruguay1.38559.9188282.9699517,0295423,58165
UZB4Uzbekistan4.91460.49081297.222611,8321509,000120
VNM37Vietnam2.944261.63746770.227332,7401368,066128
YEM78Yemen2.41729.85510372.1711029431682,280174
ZMB22Zambia3.17423.94610975.9961011,3071604,148148
ZWE26Zimbabwe3.14212.81813240.2741218601722,702166
AUS181Australia0.9921,376.260141,364.8402153,8251153,37922
DNK190Denmark0.901347.17639312.8425859,7951053,88219
FIN184Finland0.982269.65445264.7206248,8691647,97526
ISL191Iceland0.83623.91811120.00314767,037756,06615
ISR188Israel0.914387.71732354.1975342,8232139,12139
LUX186Luxembourg0.96269.4537266.848103113,1961108,9513
MHL182Marshall Islands0.9860.2201900.2171903,9251203,868154
FSM187Micronesia0.9580.3811880.3651873,7181223,562158
NOR183Norway0.983417.62730410.7134977,975476,6847
PLW185Palau0.9690.2911890.28218816,7365516,23587
CHE192Switzerland0.791715.36020565.6463983,717266,19610
VUT189Vanuatu0.9060.9511820.8621833,2601312,957163
SOM71 Somalia2.553 4.958155 12.66152 ----
PAK6 Pakistan4.230 284.21444 1202.0925 1,388157 5,872138
Syria--- ---- --
World 1.63886,599 141,860 11,464 18,779