Gross Domestic Product (PPP, Official Exchange Rate, Real Growth Rate and Per Capita)

Gross Domestic Product is the sum of all transactions (ie all purchases of goods and services) in that country. It is divided up sectorally into agriculture, industry/ manufacturing and services. As economies mature, workers tend to move out of farms into factories, then out of factories into offices. PPP or Purchase Power Parity attempts to compare GDP by the purchasing power of residents, where as the Official Exchange Rate method uses current forex rates to convert all currencies back to US Dollars. Real Growth Rate uses local currency growth. GDP Per Capita is a measure of the relative wealth of the population, and helps us to understand average income levels.