Question

Give brief explanation of PPP map of 2010. (Write answer in 12 to 15 lines)

Answer 1

This article includes a list of countries by their forecasted estimated gross domestic product based on purchasing power parity, abbreviated GDP (PPP).[2]Countries are sorted by GDP PPP forecast estimates from financial and statistical institutions in the limited period January–April 2017, which are calculated at market or government official exchange rates. The data given on this page are based on the international dollar, a standardized unit used by economists. While the European Union is shown in the data, it is not a country as per the title of this article, but rather a collection of over 20 European countries.

GDP comparisons using PPP are arguably more useful than those using nominal GDP (see List of countries by GDP (nominal)) when assessing a nation's domestic market because PPP takes into account the relative cost of local goods, services and inflation rates of the country, rather than using international market exchange rates which may distort the real differences in per capita income.[3] It is however limited when measuring financial flows between countries and when comparing quality of same goods among countries.[4] PPP is often used to gauge global poverty thresholds and is used by the United Nations in constructing the human development index.[3] These surveys such as the International Comparison Program include both tradable and non-tradable goods in an attempt to estimate a representative basket of all goods.[3]

The first table includes estimates for the year 2017 for all current 191 International Monetary Fund (IMF) members as well as Hong Kong and Taiwan. Data are in millions of international dollars; they were calculated by the IMF. Figures were published in April 2018. The second table includes data, mostly for the year 2015, for 180 of the 193 current United Nations member states as well as Hong Kong and Macau (the two Chinese Special Administrative Regions). Data are in billions of international dollars; they were compiled by the World Bank. The third table is a tabulation of the CIA World Factbook GDP (PPP) data update of 2017. The data for GDP at purchasing power parity have also been rebased using the new International Comparison Program price surveys and extrapolated to 2007.