Chart of the Week 27 July 2015
GDP (Gross Domestic Product) which measures the productivity of a country can be measured in two ways. One (traditional) method is to value each economy based on the global FX exchanges rates. A second method involves calculating what is called PPP (Purchasing Power Parity). PPP determines the local market values of goods and services in each country. Using eggs as a representative sample for all goods and services, a country where eggs cost $0.50 a dozen with a GDP of $1 trillion has exactly the same PPP GDP as a country with GDP of $2 trillion and where eggs cost $1 a dozen.
Leading GDP countries are discussed in video after the Read more >> jump.