What does GDP at PPP mean?

By Ritesh|Updated : September 6th, 2022

GDP at PPP means Gross Domestic Product (GDP) per capita based on purchasing power parity (PPP). GDP is converted to foreign currency using purchasing power parity rates.

History of India's GDP:

  • The government changed the base year for national accounts in January 2015 from the previous base year of 2004-05 to the new base year of 2011-12.
  • National accounting's base year had already undergone revision in January 2010.

Meaning of Gross Domestic Product (GDP)

  • The Gross Domestic Product (GDP) at factor cost was abandoned in favour of the gross value added (GVA) at basic prices adopted by other countries in the new series by the Central Statistics Office (CSO).
  • The economy's growth rate for 2013–14 was expected to be 6.9% based on the new base year; it was 4.7% based on the 2004–05 base.
  • Similar to this, the growth rate for 2012–13 increased from 4.5% to 5.1%.

Summary:

What does GDP at PPP mean?

It represents Gross Domestic Product (GDP) based on each person's buying power parity (PPP). Purchasing power parity rates are used to translate GDP to foreign currencies.

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