GDP per capita at purchasing-power parity by economy

Comparing production, income and other key economic indicators across countries is essential for analyzing global economic performance and guiding policy decisions. To facilitate this comparison, one approach is to convert nominal values of local currencies into a common currency, such as the US dollar. However, this approach does not take into account the different price levels in the individual countries: The same income expressed in US dollars can buy more goods and services in a country with lower prices. Purchasing power parity (PPP) exchange rates are used to balance out the differences in price levels between countries. PPPs convert different currencies into a common currency and show, in relation to a base economy (the United States), the relative price of the same basket of goods and services in the different countries. In the World Economic Outlook, PPPs are used to convert nominal GDP in local currency into PPP-based GDP, thus enabling a comparison of economic performance between countries.

The PPPs originate from the International Comparison Program (ICP), which is maintained and published by the World Bank in coordination with other international institutions, including the International Monetary Fund. New PPPs for the reference year 2021 were published in May 2024.

Further information on the use of PPP can be found in the frequently asked questions on the World Economic Outlook: https://www. imf.org/en/Publications/WEO/frequently-asked-questions