Top 10 Country GDP (PPP) History & Projection (1990-now)
Have you ever wondered what the gross domestic product was in several countries in previous years? If yes, you are in the right place. In this article we will explain you what GDP PPP is exactly and also show you as an example top 10 countries with the highest GDP PPP in 2020. Are you interested? Keep reading!
Let’s start with some theoretical information. What is the GDP? The GDP is a gross domestic product, that means total value of all products and services which were produced in several country.
So what is GDP PPP? The PPP means purchasing power parity. So GDP PPP is a gross domestic product converted to international dollars using purchasing parity rates. As you can see, the definition is not so complicated.
The World Bank
Almost whole article is based on data from the World Bank. That’s why we want to tell you something about it too. The World Bank is a financial institution, like other banks. The difference is that the World Bank is international.
The World Bank consists of two institutions: the International Bank for Reconstruction and Development (in abbreviated form IBRD) and the International Development Association (in short form IDA). In turn, the World Bank is a part of the World Bank Group.
What is the World Bank for? We want to emphasize that it is not a normal bank. The World Bank provides grants and loans for poorer countries. The main goal of this bank is fight against poverty and financing for development, for instance, in the field of education or healthcare.
The World Bank was established in 1944. Its headquarters are located in Washington DC. The IBRD brings together 189 countries. In turn, the IDA brings together 173 countries. These numbers show how big is the reach of the activity of this financial institution.
Statistics and programs
The World Bank keeps its own statistics. These statistics are known as the WDI – the World Development Indicators. The WDI are statistics about global development and fight against poverty. It is important that the World Development Indicators database can be used to make an international comparison.
What is a distinguish mark of the World Development Indicators database? These statistics are relevant and high-quality. The World Development Indicators database consists of 1600 time series indicators made for 217 economies and more than 40 groups of countries. You can find there data for many indicator from 10, 20 or… even 50 years ago!
The World Development Indicators database can be divided into 6 different themes. Here they are:
- poverty and inequality,
- states and markets,
- global links.
You know a little about statistics, so now we want to tell you some information about the World Bank program. What are we talking about? About the International Comparison Program.
What is it exactly? The International Comparison Program (in short form ICP) is one of the biggest statistical initiatives in the world. The International Comparison Program is managed by the World Bank but patron of this program is the United Nations Statistical Commission. Of course, in this program take part also other agencies, for instance, national or regional. Due to a huge size of this research managing it by the World Bank on its own is not possible.
What is the ICP for? The main goals of this program are to compare price level indexes and produce purchasing power parity. The International Comparison Program enables also converting volume and per capita gross domestic product into common currency with use of previously mentioned purchasing power parity.
Thanks to the ICP it is possible to see only differences in the volume of economies, without effect of price level differences between several economies.
The last thing we want to say about before we move on to the top 20 countries with the highest GDP PPP (current international $) in 2018 is another program. This time it will be a program managed by Eurostat, OECD and countries which are members of OECD. This program is called Eurostat-OECD PPP Programme.
Eurostat-OECD PPP Programme is quite similar to the ICP. Main goal of this program is to establish purchasing power parity in order to compare the price and volume levels of the gross domestic product.
This theoretical part is already behind us. You know a little about two most important programs and a database, so we are going to show you top 20 countries with the highest GDP PPP (current international $) in 2018.
Top 20 highest GDP PPP (current international $) in 2018
This will be the most interesting part of this article – top 20 countries with the highest GDP PPP (current international $) in 2018. Have a look:
|Country||GDP PPP (current international $) in 2018|
|China||21 414 903.68|
|United States||20 544 343.46|
|India||9 058 691.69|
|Japan||5 247 580.84|
|Germany||4 514 794.31|
|Russian Federation||4 192 936.67|
|Brazil||3 131 944.31|
|Indonesia||3 117 334.24|
|United Kingdom||3 114 857.83|
|France||3 110 915.15|
|Italy||2 585 936.45|
|Mexico||2 573 847.60|
|Turkey||2 316 406.55|
|Korea, Rep.||2 046 766.34|
|Spain||1 894 494.24|
|Canada||1 852 669.16|
|Saudi Arabia||1 643 080.03|
|Thailand||1 283 169.74|
|Australia||1 275 026.60|
|Poland||1 205 917.50|
There are no surprise in the two first places. China and the United States are two global economic powers. But have a look at the difference between these two first places and the third one. It is so significant. The GDP PPP (current international $) in India is more than 2 times smaller than in China or the United States.
Let’s have a look at fourth place. The difference between fourth and third place is also significant. The GDP PPP (current international $) in India is almost 2 times bigger than in Japan. In comparison with two first places, that is with China and the United States, the difference is even bigger! For instance, GDP PPP (current international $) in China is 4 times bigger than in Japan.
The global economy is a really curious topic. What’s more – it is also an important issue, because affects all of us. The stronger growth of GDP PPP the higher standard of living. We hope that this article about the GDP PPP (current international $) was interesting for you.