Gross domestic product (PPP)

Summarized below are statistics for gross domestic product (GDP) at purchasing power parity (PPP) for leading countries for global sourcing and outsourcing. GDP at PPP is sourced from the World Bank and is for 2009. As with GDP at prevailing exchange rates, the United States is the clear leader. However, China and India are much closer competitors when using purchasing power parity.

Gross Domestic Product (GDP) at Purchasing Power Parity (PPP) is an alternative approach to measuring the size of national economies. Similar to GDP at constant prices, it is the sum of all value add of an economy at local prices. However, the value in local currency is converted to international dollars that have the same purchasing power as a dollar in the United States. For many countries, this PPP approach indicates a relatively larger national economy that provided via the current price approach which converts local currencies to US dollars at prevailing exchange rates.