|largest economies by ppp gdp in 2020|
according to international monetary fund estimates.
top 10 countries by gdp (ppp) in 2018
this article includes a list of countries by their forecasted estimated gross domestic product based on purchasing power parity, abbreviated gdp (ppp). 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. certain regions that are not widely considered countries such as the european union and 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 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. it is however limited when measuring financial flows between countries and when comparing the quality of same goods among countries. ppp is often used to gauge global poverty thresholds and is used by the united nations in constructing the human development index. 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.
the first table includes estimates for the year 2018 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 2019. the second table includes data, mostly for the year 2018, 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 cia world factbook gdp (ppp) data update of 2017. 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 international 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 european union — and its european single market, a single market which seeks to guarantee the free movement of goods, capital, services, and labour – the "four freedoms" – within its 28 to 27 member states, also involved in international trade negotiations — might also appears in some lists.