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Gross Domestic Product (GDP) per capita, when converted to U.S.
dollars using Purchasing Power Parities (PPPs), is the most widely used
income measure for international comparisons of living standards. It
should be recognized that income measures do not capture a number of
variables affecting economic well-being, such as leisure time, health,
safety, and cultural resources.
PPPs are the number of foreign currency units required to buy
goods and services in a foreign country equivalent to what can
be bought with one dollar in the United States. These are used
to equalize the purchasing power of different currencies. PPPs
are used instead of exchange rates because market exchange
rates do not necessarily reflect the relative purchasing power of
different currencies.
Charts 1.1 and
1.2 compare the level of GDP per
capita in 2006 and the trend from 1996 to 2006 in 21 of the 22 economies
shown on various charts in this chartbook. Data for the EU-15 are also included.
Data were not available for charting GDP per capita for Taiwan.
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