GDP per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity is arguably more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on the international market.The Organisation for Economic Co-operation and Development defines GDP as "an aggregate measure of production equal to the sum of the gross values added of all resident and institutional units engaged in production and services ".
An IMF publication states that, "GDP measures the monetary value of final goods and services—that are bought by the final user—produced in a country in a given period of time ."Total GDP can also be broken down into the contribution of each industry or sector of the economy.
The ratio of GDP to the total population of the region is the per capita GDP and the same is called Mean Standard of Living.
GDP is often used as a metric for international comparisons as well as a broad measure of economic progress.
It is often considered to be the "world's most powerful statistical indicator of national development and progress".Read more