OREANDA-NEWS  Russia's economy ranks fourth in the world in terms of purchasing power parity (PPP). What this indicator measures, why the country occupies such a high position in the rating and how the metric is related to the real well—being of citizens - in the RIA Novosti article.

GDP by PPP (purchasing power parity) is a key metric for assessing the real scale of the economy. However, it should not be confused with other indicators.

Thus, nominal GDP estimates the economy at current market prices in dollars. This indicator reflects the geopolitical mass and financial influence of the state on the world stage.

The world leader in nominal GDP is the United States ($32.4 trillion), Russia is in ninth place ($2.7 trillion).

The per capita version of the indicator — nominal GDP per capita — allows you to compare the incomes of countries at world prices. The main disadvantage of the method is that it ignores the difference in the cost of living.

In the ranking of GDP (nominal value) per capita, Monaco ranks first (288 thousand dollars), Russia — 65th (18,5 thousand).