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This article includes a list of countries in the world sorted by their nominal gross domestic product (GDP) converted to dollars at market exchange rates. Nominal GDP does not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations may change a country's ranking from one year to the next, even though they often make little or no difference in the standard of living of its population.
GDP comparisons at market exchange rates also do not inherently adjust for changes in price levels when making comparisons at different points in time. When no such adjustment has been made, this is referred to as nominal GDP. When an adjustment has been made to convert to constant dollars (or other currency), it is referred to as real GDP.
Comparisons of national wealth are also frequently made on the basis of purchasing power parity (PPP), to adjust for differences in the cost of living in different countries. PPP largely removes both the exchange rate problem and the price level problem, by making comparisons at a theoretical exchange rate based on the current prices for a given basket of goods purchased in each country. Comparisons using market exchange rates are generally considered good for examining international flows, or internationally traded goods, but PPP is considered better for the purpose of comparing overall well being.
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