just as an aside, though, the top 5 in Europe and Asia aren't *that* dominant. Saudi Arabia trails South Korea by less than 200 million. Spain trails Italy by about 500 million.
being 2020. But hey, they’re just hiding their weaknesses as of now. Just saying.
These are just the Asian examples! Europe's numbers are also way off, with Russia being listed ahead of the UK and France despite their much higher GDPs in real life.
The WorldBank is my source for all of this. I suggest using it instead of whatever website where these bizarre figures were published.
This means that usually the numbers for "poorer" countries are higher. This is trying to reflect, especially if used as "per capita", how big the gaps between countries is when it comes to buying stuff. Not the best form of measurement but I like the idea
It's a better measure, in my opinion. So how does it work?
Let's say there are two countries whose economy consists solely of producing apples. Both countries produce exactly one million apples, alike in every way. Which country has the bigger economy?
According to PPP, both countries have the same size economy since they both make the same number of apples. But according to your measure, nominal GDP, it depends on how much the currencies of each country are worth.
I hope you can see why PPP makes more sense intuitively. It also seems to do other things better as well. For instance, it's more consistent year over year, and it is more strongly correlated with life expectancy. When it comes to measuring the size of the economy, PPP just makes more sense.