GDP methodology In the Economy category, GDP dollar estimates for all countries are derived from purchasing power parity (PPP) calculations rather than from conversions at official currency exchange rates. The PPP method involves the use of standardized international dollar price weights, which are applied to the quantities of final goods and services produced in a given economy. The data derived from the PPP method provide the best available starting point for comparisons of economic strength and well-being between countries. The division of a GDP estimate in domestic currency by the corresponding PPP estimate in dollars gives the PPP conversion rate. Whereas PPP estimates for OECD countries are quite reliable, PPP estimates for developing countries are often rough approximations. Most of the GDP estimates are based on extrapolation of PPP numbers published by the UN International Comparison Program (UNICP) and by Professors Robert Summers and Alan Heston of the University of Pennsylvania and their colleagues. In contrast, the currency exchange rate method involves a variety of international and domestic financial forces that often have little relation to domestic output. In developing countries with weak currencies the exchange rate estimate of GDP in dollars is typically one-fourth to one-half the PPP estimate. Furthermore, exchange rates may suddenly go up or down by 10% or more because of market forces or official fiat whereas real output has remained unchanged. On 12 January 1994, for example, the 14 countries of the African Financial Community (whose currencies are tied to the French franc) devalued their currencies by 50%. This move, of course, did not cut the real output of these countries by half. One important caution: the proportion of, say, defense expenditures as a percentage of GDP in local currency accounts may differ substantially from the proportion when GDP accounts are expressed in PPP terms, as, for example, when an observer tries to estimate the dollar level of Russian or Japanese military expenditures. Note: the numbers for GDP and other economic data cannot be chained together from successive volumes of the Factbook because of changes in the US dollar measuring rod, revisions of data by statistical agencies, use of new or different sources of information, and changes in national statistical methods and practices.
GDP - composition by sector This entry gives the percentage contribution of agriculture, industry, and services to total GDP.
GDP - per capita This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
GDP - real growth rate This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent.
Geographic coordinates This entry includes rounded latitude and longitude figures for the purpose of finding the approximate geographic center of an entity and is based on the Gazetteer of Conventional Names, Third Edition, August 1988, US Board on Geographic Names and on other sources.
Geographic names This information is presented in Appendix F: Cross-Reference List of Geographic Names. It includes a listing of various alternate names, former names, local names, and regional names referenced to one or more related Factbook entries. Spellings are normally, but not always, those approved by the US Board on Geographic Names (BGN). Alternate names and additional information are included in parentheses.
Geography This category includes the entries dealing with the natural environment and the effects of human activity.
Geography - note This entry includes miscellaneous geographic information of significance not included elsewhere.
GINI index
See entry for Distribution of family income - Gini index
GNP Gross national product (GNP) is the value of all final goods and services produced within a nation in a given year, plus income earned by its citizens abroad, minus income earned by foreigners from domestic production. The Factbook, following current practice, uses GDP rather than GNP to measure national production. However, the user must realize that in certain countries net remittances from citizens working abroad may be important to national well-being.