GDP (PPP) means gross domestic product based on purchasing power parity. This article includes a list of countries by their forecast estimated GDP (PPP). [1] Countries are sorted by GDP (PPP) forecast estimates from financial and statistical institutions that calculate using market or government official exchange rates. The data given on this page are based on the international dollar, a standardized unit used by economists. Certain regions that are not widely considered countries such as Hong Kong also show up in the list if they are distinct jurisdiction areas or economic entities.
GDP comparisons using PPP are arguably more useful than those using nominal GDP when assessing the domestic market of a state 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. [2] It is however limited when measuring financial flows between countries and when comparing the quality of same goods among countries. [3] PPP is often used to gauge global poverty thresholds and is used by the United Nations in constructing the human development index. [2] 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. [2]
The first set of data on the left columns of the table includes estimates for the year 2023 made for each economy of the 196 economies (189 U.N. member states and 7 areas of Aruba, Hong Kong, Kosovo, Macau, Palestine, Puerto Rico, and Taiwan) covered by the International Monetary Fund (IMF)'s International Financial Statistics (IFS) database. The data is in millions of international dollars and was calculated and published by the IMF in October 2023. The second table includes data, mostly for the year 2022, 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 millions 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 2019. The data for GDP at purchasing power parity has also been rebased using the new International Comparison Program price surveys and extrapolated to 2007. Non-sovereign entities (the world, continents, and some dependent territories) and states with limited recognition (such as Kosovo, Palestine and Taiwan) are included in the list in cases in which they appear in the sources. These economies are not ranked in the charts here, but are listed in sequence by GDP for comparison. In addition, non-sovereign entities are marked in italics.
The table is initially ranked by the average of the available estimates for each country or territory, and can be reranked by either of the sources.
The links in the "Country/Territory" row of the following table link to the article on the GDP or the economy of the respective country or territory.
Country/Territory | IMF [4] [5] | World Bank [6] | CIA [7] [8] [9] | |||
---|---|---|---|---|---|---|
Forecast | Year | Estimate | Year | Estimate | Year | |
World | 185,677,122 | 2024 | 184,653,697 | 2023 | 165,804,000 | 2023 |
China | 37,070,000 | [n 1] 2024 | 34,643,706 | [n 2] 2023 | 31,227,000 | [n 1] 2023 |
United States | 29,170,000 | 2024 | 27,360,935 | 2023 | 24,662,000 | 2023 |
India | 16,024,460 | 2024 | 14,537,383 | 2023 | 13,104,000 | 2023 |
Russia | 6,910,000 | 2024 | 6,452,309 | 2023 | 5,816,000 | 2023 |
Japan | 6,570,000 | 2024 | 6,251,558 | 2023 | 5,761,000 | 2023 |
Germany | 6,020,000 | 2024 | 5,857,856 | 2023 | 5,230,000 | 2023 |
Brazil | 4,702,004 | 2024 | 4,456,611 | 2023 | 4,016,000 | 2023 |
Indonesia | 4,661,542 | 2024 | 4,333,084 | 2023 | 3,906,000 | 2023 |
France | 4,360,000 | 2024 | 4,169,071 | 2023 | 3,764,000 | 2023 |
United Kingdom | 4,280,000 | 2024 | 4,026,241 | 2023 | 3,700,000 | 2023 |
Italy | 3,600,000 | 2024 | 3,452,505 | 2023 | 3,097,000 | 2023 |
Turkey | 3,460,000 | 2024 | 3,767,230 | 2023 | 2,936,000 | 2023 |
Mexico | 3,300,000 | 2024 | 3,288,671 | 2023 | 2,873,000 | 2023 |
South Korea | 3,260,000 | 2024 | 2,794,196 | 2023 | 2,615,000 | 2023 |
Spain | 2,670,000 | 2024 | 2,553,107 | 2023 | 2,242,000 | 2023 |
Canada | 2,580,000 | 2024 | 2,469,314 | 2023 | 2,238,000 | 2023 |
Egypt | 2,230,000 | 2024 | 2,120,932 | 2023 | 1,912,000 | 2023 |
Saudi Arabia | 2,110,000 | 2024 | 2,031,780 | 2023 | 1,831,000 | 2023 |
Australia | 1,900,000 | 2024 | 1,841,115 | 2023 | 1,584,000 | 2023 |
Poland | 1,890,000 | 2024 | 1,814,628 | 2023 | 1,616,000 | 2023 |
Taiwan | 1,840,000 | 2024 | — | 1,143,277 | 2019 | |
Iran | 1,775,000 | 2024 | 1,598,124 | 2023 | 1,440,000 | 2023 |
Thailand | 1,770,000 | 2024 | 1,681,795 | 2023 | 1,516,000 | 2023 |
Bangladesh | 1,690,000 | 2024 | 1,567,951 | 2023 | 1,413,000 | 2023 |
Vietnam | 1,630,000 | 2024 | 1,502,096 | 2023 | 1,354,000 | 2023 |
Pakistan | 1,580,000 | 2024 | 1,493,905 | 2023 | 1,347,000 | 2023 |
Nigeria | 1,490,000 | 2024 | 1,414,033 | 2023 | 1,275,000 | 2023 |
Netherlands | 1,460,000 | 2024 | 1,398,445 | 2023 | 1,240,000 | 2023 |
Malaysia | 1,370,942 | 2024 | 1,277,913 | 2023 | 1,152,000 | 2023 |
Philippines | 1,370,400 | 2024 | 1,262,021 | 2023 | 1,138,000 | 2023 |
Argentina | 1,350,000 | 2024 | 1,369,904 | 2023 | 1,235,000 | 2023 |
Colombia | 1,130,000 | 2024 | 1,122,331 | 2023 | 978,024 | 2023 |
South Africa | 993,750 | 2024 | 957,414 | 2023 | 862,981 | 2023 |
Romania | 894,220 | 2024 | 912,851 | 2023 | 772,107 | 2023 |
Singapore | 879,980 | 2024 | 837,348 | 2023 | 754,758 | 2023 |
Belgium | 863,840 | 2024 | 832,972 | 2023 | 751,592 | 2023 |
Switzerland | 851,140 | 2024 | 822,862 | 2023 | 590,710 | 2020 |
United Arab Emirates | 849,780 | 2024 | 798,490 | 2023 | 655,790 | 2019 |
Kazakhstan | 830,610 | 2024 | 782,723 | 2023 | 475,180 | 2020 |
Algeria | 826,140 | 2024 | 776,539 | 2023 | 468,400 | 2020 |
Sweden | 763,590 | 2024 | 739,741 | 2023 | 524,750 | 2020 |
Ireland | 691,900 | 2024 | 671,603 | 2023 | 447,970 | 2020 |
Chile | 674,390 | 2024 | 653,360 | 2023 | 445,880 | 2020 |
Austria | 667,150 | 2024 | 673,525 | 2023 | 463,120 | 2020 |
Ukraine | 655,580 | [n 3] 2024 | 621,258 | [n 3] 2023 | 516,680 | [n 3] 2020 |
Iraq | 655,420 | 2024 | 635,633 | 2023 | 372,270 | 2020 |
Czech Republic | 619,880 | 2024 | 585,187 | 2023 | 409,970 | 2020 |
Peru | 605,570 | 2024 | 574,287 | 2023 | 371,290 | 2020 |
Hong Kong | 569,830 | 2024 | 538,692 | 2023 | 420,130 | 2020 |
Norway | 567,240 | 2024 | 576,575 | 2023 | 342,060 | 2020 |
Israel | 541,340 | 2024 | 521,339 | 2023 | 353,390 | 2020 |
Portugal | 508,510 | 2024 | 513,203 | 2023 | 331,640 | 2020 |
Denmark | 496,700 | 2024 | 456,059 | 2023 | 326,200 | 2020 |
Hungary | 448,460 | 2024 | 440,579 | 2023 | 302,320 | 2020 |
Greece | 436,757 | 2024 | 426,748 | 2023 | 292,400 | 2020 |
Ethiopia | 434,440 | 2024 | 393,407 | 2023 | 264,050 | 2020 |
Uzbekistan | 428,200 | 2024 | 354,100 | 2023 | 239,420 | 2020 |
Morocco | 396,690 | 2024 | 374,409 | 2023 | 259,420 | [n 4] 2020 |
Kenya | 375,360 | 2024 | 348,430 | 2023 | 226,940 | 2020 |
Angola | 374,940 | 2024 | 294,960 | 2023 | 203,710 | 2020 |
Finland | 361,310 | 2024 | 363,315 | 2023 | 261,390 | 2020 |
Qatar | 356,000 | 2024 | 326,445 | 2023 | 245,660 | 2020 |
Sri Lanka | 319,248 | 2022 | 318,551 | 2023 | 274,800 | 2020 |
Dominican Republic | 312,570 | 2024 | 290,243 | 2023 | 184,450 | 2020 |
Ecuador | 296,730 | 2024 | 288,687 | 2023 | 182,240 | 2020 |
Belarus | 293,140 | 2024 | 282,246 | 2023 | 179,970 | 2020 |
New Zealand | 283,910 | 2024 | 282,620 | 2023 | 215,600 | 2020 |
Myanmar | 283,750 | 2024 | 322,296 | 2023 | 247,240 | [n 5] 2020 |
Tanzania | 269,670 | 2024 | 259,661 | 2023 | 152,790 | 2020 |
Ghana | 269,110 | 2024 | 254,767 | 2023 | 164,840 | 2020 |
Guatemala | 264,030 | 2024 | 247,604 | 2023 | 141,500 | 2020 |
Azerbaijan | 253,120 | 2024 | 239,521 | 2023 | 138,510 | 2020 |
Kuwait | 249,260 | 2024 | 243,031 | 2023 | 209,740 | 2019 |
Bulgaria | 248,910 | 2024 | 248,788 | 2023 | 155,060 | 2020 |
Slovakia | 247,540 | 2024 | 242,305 | 2023 | 165,570 | 2020 |
Ivory Coast | 244,610 | 2024 | 224,945 | 2023 | 136,480 | 2020 |
Venezuela | 222,360 | 2024 | 506,339 | 2011 | 269,068 | 2018 |
Oman | 222,060 | 2024 | 206,309 | 2023 | 135,790 | 2019 |
Serbia | 191,560 | 2024 | 181,345 | 2023 | 125,800 | 2020 |
DR Congo | 190,130 | 2024 | 170,865 | 2023 | 96,030 | 2020 |
Croatia | 187,190 | 2024 | 176,899 | 2023 | 107,110 | 2020 |
Panama | 186,210 | 2024 | 177,361 | 2023 | 109,520 | 2020 |
Turkmenistan | 177,370 | 2024 | 105,309 | 2019 | 92,330 | 2019 |
Tunisia | 176,870 | 2024 | 170,448 | 2023 | 114,970 | 2020 |
Uganda | 170,610 | 2024 | 150,513 | 2023 | 99,610 | 2020 |
Nepal | 169,120 | 2024 | 160,101 | 2023 | 110,720 | 2020 |
Cameroon | 163,160 | 2024 | 154,126 | 2023 | 94,940 | 2020 |
Costa Rica | 158,650 | 2024 | 145,693 | 2023 | 100,250 | 2020 |
Puerto Rico | 158,190 | 2024 | 152,910 | 2023 | 106,820 | 2020 |
Lithuania | 154,620 | 2024 | 148,985 | 2023 | 102,660 | 2020 |
Cambodia | 139,800 | 2024 | 95,300 | 2023 | 70,080 | 2020 |
Bolivia | 139,160 | 2024 | 132,892 | 2023 | 92,590 | 2020 |
Cuba | — | — | 137,000 | 2017 | ||
Syria | 136,379 | 2020 | 62,150 | 2021 | 50,280 | 2015 |
Paraguay | 127,420 | 2024 | 119,842 | 2023 | 87,980 | 2020 |
Jordan | 124,280 | 2024 | 118,493 | 2023 | 100,160 | 2020 |
Sudan | 123,480 | 2024 | 150,925 | 2023 | 176,400 | 2020 |
Uruguay | 123,220 | 2024 | 116,596 | 2023 | 75,060 | 2020 |
Slovenia | 117,990 | 2024 | 116,540 | 2023 | 76,750 | 2020 |
Libya | 106,120 | 2024 | 135,295 | 2023 | 70,650 | 2020 |
Bahrain | 105,650 | 2024 | 94,846 | 2023 | 69,650 | 2020 |
Georgia | 102,250 | [n 6] 2024 | 92,810 | [n 6] 2023 | 52,330 | [n 6] 2020 |
Luxembourg | 101,886 | 2024 | 86,117 | 2021 | 69,720 | 2020 |
Senegal | 94,350 | 2024 | 85,849 | 2023 | 55,260 | 2020 |
Macau | 90,310 | 2024 | 79,697 | 2023 | 35,580 | 2020 |
Zambia | 88,560 | 2024 | 84,863 | 2023 | 60,120 | 2020 |
Zimbabwe | 86,160 | 2024 | 64,993 | 2023 | 40,790 | 2020 |
El Salvador | 84,220 | 2024 | 79,831 | 2023 | 52,260 | 2020 |
Latvia | 81,800 | 2024 | 79,976 | 2023 | 56,920 | 2020 |
Honduras | 81,060 | 2024 | 76,388 | 2023 | 50,890 | 2020 |
Lebanon | 78,166 | 2022 | 70,557 | 2022 | 79,510 | 2020 |
Laos | 74,760 | 2024 | 71,194 | 2023 | 56,790 | 2020 |
Bosnia and Herzegovina | 74,280 | 2024 | 73,353 | 2023 | 47,050 | 2020 |
Afghanistan | 72,512 | 2022 | 86,077 | 2022 | 77,040 | 2020 |
Yemen | 69,520 | 2024 | 92,755 | 2013 | 73,630 | 2017 |
Armenia | 69,300 | 2024 | 64,044 | 2023 | 37,310 | 2020 |
Burkina Faso | 68,580 | 2024 | 63,405 | 2023 | 45,160 | 2022 |
Mali | 68,530 | 2024 | 63,497 | 2023 | 44,890 | 2020 |
Mongolia | 67,690 | 2024 | 62,421 | 2023 | 37,600 | 2020 |
Guinea | 66,620 | 2024 | 62,855 | 2023 | 35,080 | 2020 |
Estonia | 65,540 | 2024 | 66,932 | 2023 | 47,440 | 2020 |
Benin | 63,540 | 2024 | 58,256 | 2023 | 40,290 | 2020 |
Guyana | 62,650 | 2024 | 44,974 | 2023 | 14,690 | 2020 |
Madagascar | 60,880 | 2024 | 56,864 | 2023 | 41,820 | 2020 |
Nicaragua | 60,370 | 2024 | 56,678 | 2023 | 34,980 | 2020 |
Mozambique | 60,290 | 2024 | 56,171 | 2023 | 38,420 | 2020 |
Albania | 58,200 | 2024 | 58,750 | 2023 | 37,730 | 2020 |
Tajikistan | 56,370 | 2024 | 51,551 | 2023 | 34,880 | 2020 |
Niger | 55,550 | 2024 | 49,436 | 2023 | 28,970 | 2020 |
Cyprus | 55,140 | [n 7] 2024 | 53,033 | [n 7] 2023 | 33,670 | [n 7] 2020 |
Kyrgyzstan | 55,010 | 2024 | 50,435 | 2023 | 31,020 | 2020 |
Gabon | 54,470 | 2024 | 53,475 | 2023 | 32,050 | 2020 |
Botswana | 53,640 | 2024 | 51,856 | 2023 | 37,720 | 2020 |
Chad | 52,220 | 2024 | 35,996 | 2023 | 24,970 | 2020 |
Rwanda | 51,920 | 2024 | 47,373 | 2023 | 27,180 | 2020 |
Trinidad and Tobago | 49,970 | 2024 | 48,461 | 2023 | 33,210 | 2020 |
North Macedonia | 49,300 | 2024 | 45,068 | 2023 | 33,020 | 2020 |
Moldova | 45,410 | [n 8] 2024 | 43,233 | [n 8] 2023 | 32,260 | [n 8] 2020 |
Papua New Guinea | 44,420 | 2024 | 47,593 | 2023 | 36,690 | 2020 |
Brunei | 41,020 | 2024 | 39,118 | 2023 | 27,230 | 2020 |
Mauritius | 40,438 | 2024 | 37,198 | 2023 | 24,640 | 2020 |
Congo | 40,400 | 2024 | 42,338 | 2023 | 19,030 | 2020 |
Malta | 40,320 | 2024 | 34,545 | 2023 | 20,600 | 2020 |
Malawi | 40,070 | 2024 | 39,093 | 2023 | 28,440 | 2020 |
North Korea | — | — | 40,000 | 2015 | ||
Haiti | 37,650 | 2024 | 38,170 | 2023 | 31,620 | 2020 |
Mauritania | 37,280 | 2024 | 33,721 | 2023 | 23,170 | 2020 |
Namibia | 35,070 | 2024 | 33,220 | 2023 | 22,600 | 2020 |
Equatorial Guinea | 34,590 | 2024 | 32,104 | 2023 | 23,860 | 2020 |
Jamaica | 33,780 | 2024 | 32,423 | 2023 | 25,890 | 2020 |
Palestine | 33,173 | [n 9] 2023 | 30,418 | [n 9] 2023 | 25,910 | [n 10] 2020 |
Togo | 30,560 | 2024 | 28,567 | 2023 | 17,450 | 2020 |
Somalia | 30,430 | 2024 | 29,234 | 2023 | 13,190 | 2020 |
Sierra Leone | 30,340 | 2024 | 16,234 | 2023 | 13,150 | 2020 |
Iceland | 30,240 | 2024 | 30,530 | 2023 | 19,160 | 2020 |
Kosovo | 29,719 | 2024 | 26,397 | 2023 | 19,130 | 2020 |
Montenegro | 20,180 | 2024 | 19,234 | 2023 | 11,360 | 2020 |
Bahamas | 15,310 | 2024 | 14,670 | 2023 | 12,100 | 2020 |
Eswatini | 15,240 | 2024 | 14,216 | 2023 | 9,740 | 2020 |
Fiji | 14,770 | 2024 | 14,089 | 2023 | 9,860 | 2020 |
Maldives | 13,870 | 2024 | 12,925 | 2023 | 7,050 | 2020 |
Suriname | 13,850 | 2024 | 13,117 | 2023 | 9,460 | 2020 |
Burundi | 13,170 | 2024 | 12,588 | 2023 | 8,690 | 2020 |
Bhutan | 12,980 | 2024 | 11,753 | 2022 | 8,420 | 2020 |
South Sudan | 11.790 | 2024 | 12,827 | 2015 | 20,010 | 2017 |
New Caledonia | — | — | 11,110 | 2017 | ||
Liberia | 10,580 | 2024 | 9,856 | 2023 | 6,850 | 2020 |
Gambia | 9,510 | 2024 | 8,770 | 2023 | 5,220 | 2020 |
Djibouti | 8,970 | 2024 | 8,187 | 2023 | 5,420 | 2020 |
Monaco | — | — | 7,672 | 2015 | ||
Lesotho | 7,060 | 2024 | 6,510 | 2023 | 4,880 | 2020 |
Central African Republic | 6,910 | 2024 | 6,488 | 2023 | 4,483 | 2019 |
Bermuda | — | 6,796 | 2023 | 5,230 | 2019 | |
Isle of Man | — | — | 6,792 | 2015 | ||
East Timor | 6,440 | 2024 | 6,950 | 2023 | 4,190 | 2020 |
Barbados | 6,410 | 2024 | 5,458 | 2023 | 3,700 | 2020 |
Eritrea | 6,405 | 2020 | 5,224 | 2011 | 9,702 | 2017 |
Guinea-Bissau | 6,158 | 2024 | 5,657 | 2023 | 3,640 | 2020 |
Belize | 6,153 | 2024 | 5,831 | 2023 | 2,430 | 2020 |
Andorra | 5,960 | 2024 | 5,733 | 2023 | 3,327 | 2015 |
Cape Verde | 5,830 | [n 11] 2024 | 5,439 | [n 11] 2023 | 3,360 | [n 11] 2020 |
Cayman Islands | — | 5,851 | 2022 | 4,780 | 2019 | |
Guam | — | — | 5,793 | 2016 | ||
Aruba | 5,680 | 2024 | 4,815 | 2022 | 4,158 | 2017 |
Jersey | — | — | 5,569 | 2016 | ||
French Polynesia | — | — | 5,490 | 2017 | ||
Liechtenstein | — | — | 4,978 | 2014 | ||
Saint Lucia | 4,950 | 2024 | 4,529 | 2023 | 2,250 | 2020 |
U.S. Virgin Islands | — | 4,895 | 2021 | 3,872 | 2016 | |
Curaçao | — | 4,428 | 2022 | 3,860 | 2019 | |
Seychelles | 4,140 | 2024 | 3,915 | 2023 | 2,400 | 2020 |
Faroe Islands | — | 4,064 | 2023 | 2,001 | 2014 | |
Greenland | — | 3,857 | 2021 | 2,413 | 2015 | |
Guernsey | — | — | 3,465 | 2015 | ||
Comoros | 3,440 | 2024 | 3,284 | 2023 | 2,730 | 2020 |
Antigua and Barbuda | 3,260 | 2024 | 2,998 | 2023 | 1,760 | 2020 |
San Marino | 2,750 | 2024 | 2,217 | 2021 | 2,060 | 2019 |
Grenada | 2,350 | 2024 | 2,227 | 2023 | 1,700 | 2020 |
Saint Vincent and the Grenadines | 2,160 | 2024 | 2,061 | 2023 | 1,340 | 2020 |
Sint Maarten (Dutch part) | — | 2,121 | 2023 | 1,440 | 2018 | |
Solomon Islands | 2,060 | 2024 | 2,247 | 2023 | 1,710 | 2020 |
Gibraltar | — | — | 2,044 | 2014 | ||
Saint Kitts and Nevis | 1,690 | 2024 | 1,595 | 2023 | 1,240 | 2020 |
Samoa | 1,480 | 2024 | 1,507 | 2023 | 1,250 | 2020 |
São Tomé and Príncipe | 1,470 | 2024 | 1,405 | 2023 | 890 | 2020 |
Dominica | 1,380 | 2024 | 1,285 | 2023 | 710 | 2020 |
Northern Mariana Islands | — | — | 1,242 | 2016 | ||
Turks and Caicos Islands | — | 1,143 | 2023 | 820 | 2020 | |
Vanuatu | 990 | 2024 | 1,108 | 2023 | 850 | 2020 |
Tonga | 780 | 2024 | 749 | 2022 | 670 | 2019 |
American Samoa | — | — | 658 | 2016 | ||
Saint Martin (French part) | — | — | 562 | 2005 | ||
British Virgin Islands | — | — | 500 | 2017 | ||
Kiribati | 460 | 2024 | 470 | 2023 | 270 | 2020 |
Micronesia | 443 | 2024 | 485 | 2023 | 390 | 2019 |
Palau | 307 | 2024 | 315 | 2023 | 320 | 2019 |
Cook Islands | — | — | 300 | 2016 | ||
Marshall Islands | 270 | 2024 | 314 | 2023 | 240 | 2019 |
Saint Pierre and Miquelon | — | — | 261 | 2015 | ||
Falkland Islands | — | — | 206 | 2015 | ||
Anguilla | — | — | 175 | 2009 | ||
Montserrat | — | — | 167 | 2011 | ||
Nauru | 141 | 2024 | 161 | 2023 | 150 | 2019 |
Tuvalu | 70 | 2024 | 65 | 2023 | 50 | 2020 |
Wallis and Futuna | — | — | 60 | 2004 | ||
Saint Helena, Ascension and Tristan da Cunha | — | — | 31 | 2009 | ||
Niue | — | — | 10 | 2003 | ||
Tokelau | — | — | 8 | 2017 |
The gross world product (GWP), also known as gross world income (GWI), is the combined gross national income of all the countries in the world. Because imports and exports balance exactly when considering the whole world, this also equals the total global gross domestic product (GDP). According to the World Bank, the 2013 nominal GWP was approximately 75.59 trillion United States dollars. In 2017, according to the CIA's World Factbook, the GWP was around $80.27 trillion in nominal terms and totaled approximately 127.8 trillion international dollars in terms of purchasing power parity (PPP). The per capita PPP GWP in 2017 was approximately 17,500 international dollars according to the World Factbook. According to the World Bank, the 2020 GWP in current dollars was approximately $84.705 trillion.
Purchasing power parity (PPP) is a measure of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries' currencies. PPP is effectively the ratio of the price of a market basket at one location divided by the price of the basket of goods at a different location. The PPP inflation and exchange rate may differ from the market exchange rate because of tariffs, and other transaction costs.
A developed country, or advanced country, is a sovereign state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are the gross domestic product (GDP), gross national product (GNP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living. Which criteria are to be used and which countries can be classified as being developed are subjects of debate. Different definitions of developed countries are provided by the International Monetary Fund and the World Bank; moreover, HDI ranking is used to reflect the composite index of life expectancy, education, and income per capita. In 2023, 40 countries fit all four criteria, while an additional 19 countries fit three out of four.
The world economy or global economy is the economy of all humans in the world, referring to the global economic system, which includes all economic activities conducted both within and between nations, including production, consumption, economic management, work in general, financial transactions and trade of goods and services. In some contexts, the two terms are distinct: the "international" or "global economy" is measured separately and distinguished from national economies, while the "world economy" is simply an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use and exchange, the definitions, representations, models and valuations of the world economy vary widely. It is inseparable from the geography and ecology of planet Earth.