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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 2005
and the trend from 1995 to 2005 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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