It is also known as 'cross-border comparisons'
The level of GDP in different countries may be compared by converting their value in national currency according to either the current currency exchange rate, or the purchase power parity exchange rate.
The ranking of countries may differ significantly based on which method is used.
There is a clear pattern of the purchasing power parity method decreasing the disparity in GDP between high and low income (GDP) countries, as compared to the current exchange rate method. This finding is called the Penn effect.
No, other countries calculate their GDP in terms of their own currency. It is common for GDP to be converted to US dollars for comparisons.
Real GDP calculations have been adjusted to factor in inflation. Nominal GDP calculations are not adjusted. It is harder to make valid comparisons across time if you don't adjust for price level differences.
Nominal GDP is GDP evaluated at current market prices. Therefore , nominal GDP wil include of the changes in market prices that have occurred during the current year due to inflation or deflation. Nominal GDP= GDP deflator.real GDP/100 Real GDP is GDP evaluate at the market price of some base year. GDP deflator --- Using the statistics on real GDP and nominal GDP, one can calculate an implecit index of the price level for the year. This index is called GDP deflator. GDP deflator = nominal GDP/real GDP .100 The GDP deflator can be viewed as a conversion factor that transform real GDP into nominal GDP. Note that in the base year, real GDP is by definition equal to nominal GDP so that the GDP deflator in the base year equal to 100.
TOP ELEVEN COUNTRIES IN SOUTH EAST ASIA BY GDP(GROSS DOMESTIC PRODUCT ) East Timor (GDP 499 ) Laos (GDP 5,260 ) Cambodia (GDP 11,182 ) Myanmar (GDP 27,182 ) Vietnam (GDP 89,829 ) Philippine (GDP 168,580 ) Hong kong (GDP 215,559 ) Malaysia (GDP 222,219 ) Thailand (GDP 273,248) Taiwan (GDP 392,552 ) Indonesia (GDP 511,765)
Real GDP is the GDP during your chosen base year, and nominal GDP is the GDP of the year on which you are focusing. The GDP deflator from 1990 to now (2013) is: GDP (2013)/ GDP (1990) * 100%
Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation
It is 100*(New GDP - Old GDP)/Old GDP
the GDP would be overstated
[ (GDP 2006 - GDP 2005) / GDP 2005] X 100 ---- ----
GDP Deflator = Nominal GDP/Real GDP x 100.
nominal GDP and real GDP.
Cia gdp