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A PPP exchange rate can be thought of as the cost ratio of a comparable (but not identical) basket of goods in two countries. These statistics comply to protocols laid down in the 1993 version of the Systems of National Accounts, SNA93.The SNA93 established the ‘production boundary’, a crucial definition of what is and is not included in GDP figures:In principle there are three equivalent ways to calculate GDP:It theory these three measures should be equal; they constitute an accounting identity. In Journal of Economic Perspectives, Vol. Mining, manufacturing and transport, storage and communication industries contributed the most to the GDP contraction. The income of the average person in the world has increased from just $3,300 in 1950 to $14,574 in 2016. GDP Growth Rate QoQ That creates an asset bubble. The South African Treasury expects the GDP to grow 0.5 percent in 2019. If this analysis of the pre-growth economy is true than we would expect to see a positive correlation between productivity and the density of the population.All the data is reported in the current borders of the world. In contrast, output rebounded for mining (1.8% vs -6.1%), boosted by platinum group metals, iron ore and gold. In a world where all goods are traded, exchange rate adjusted GDP would be a more informative way to make international comparisons. This made it possible that when people in one place became richer, other people in other places could become richer at the same time.And finally I have included one reconstruction of global total GDP over the last two millennia.For this I have used recent data from the World Bank for the period from 1990 onward and for the historical estimates before 1990 I rely on the historical estimates constructed by the economic historian Angus Maddison.The following chart shows economic growth in the USA adjusted for inflation.GDP per capita in the USA at the eve of independence was still below $2,000, adjusted for inflation and measured in prices of 2011 it is estimated to $1,883.It is remarkable how steady economic growth was over this very long period. This tells us that average real wages are 11.2-times higher today than for the average wage earner back in 1750. The following chart plots the share that answered “very important” against the average prosperity of the population for each country in the survey.There is a clear correlation between poverty and religiosity. This is GDP per capita.GDP is published in a country’s National Accounts. An example are the long-run reconstructions of the economy of Great Britain at the beginning of this entry.The successors of Maddison in Groningen have then extended his original work by combining them with the many new reconstructions that were published in recent years.
A PPP exchange rate can be thought of as the cost ratio of a comparable (but not identical) basket of goods in two countries. These statistics comply to protocols laid down in the 1993 version of the Systems of National Accounts, SNA93.The SNA93 established the ‘production boundary’, a crucial definition of what is and is not included in GDP figures:In principle there are three equivalent ways to calculate GDP:It theory these three measures should be equal; they constitute an accounting identity. In Journal of Economic Perspectives, Vol. Mining, manufacturing and transport, storage and communication industries contributed the most to the GDP contraction. The income of the average person in the world has increased from just $3,300 in 1950 to $14,574 in 2016. GDP Growth Rate QoQ That creates an asset bubble. The South African Treasury expects the GDP to grow 0.5 percent in 2019. If this analysis of the pre-growth economy is true than we would expect to see a positive correlation between productivity and the density of the population.All the data is reported in the current borders of the world. In contrast, output rebounded for mining (1.8% vs -6.1%), boosted by platinum group metals, iron ore and gold. In a world where all goods are traded, exchange rate adjusted GDP would be a more informative way to make international comparisons. This made it possible that when people in one place became richer, other people in other places could become richer at the same time.And finally I have included one reconstruction of global total GDP over the last two millennia.For this I have used recent data from the World Bank for the period from 1990 onward and for the historical estimates before 1990 I rely on the historical estimates constructed by the economic historian Angus Maddison.The following chart shows economic growth in the USA adjusted for inflation.GDP per capita in the USA at the eve of independence was still below $2,000, adjusted for inflation and measured in prices of 2011 it is estimated to $1,883.It is remarkable how steady economic growth was over this very long period. This tells us that average real wages are 11.2-times higher today than for the average wage earner back in 1750. The following chart plots the share that answered “very important” against the average prosperity of the population for each country in the survey.There is a clear correlation between poverty and religiosity. This is GDP per capita.GDP is published in a country’s National Accounts. An example are the long-run reconstructions of the economy of Great Britain at the beginning of this entry.The successors of Maddison in Groningen have then extended his original work by combining them with the many new reconstructions that were published in recent years.