GDP Nominal, GDP PPP, GDP Per Capita

1. GDP Nominal

The formula for calculating Nominal GDP is:
 
Nominal GDP=

∑(Price of Goods and Services×Quantity of Goods and Services)

Or, more generally:
Nominal GDP=C+I+G+(X−M)

Where:

•     C = Consumption (spending by households)
•     I = Investment (spending by businesses on capital)
•     G = Government spending
•     X = Exports
•     M = Imports (subtracted to account for spending on foreign goods)

This formula sums up all spending in an economy at current market prices, without adjusting for inflation. 

2. GDP, Purchasing Power Parity (PPP)

The simplest formula for GDP at Purchasing Power Parity (PPP) is:
 

GDP (PPP) = Nominal GDP/ Price Level Index (PLI)

Where:

• Nominal GDP is the GDP at current market prices.
• Price Level Index (PLI) is a factor that adjusts for differences in price levels between countries, relative to a base country or the world average.

Alternatively, if comparing across countries:
GDP (PPP) = GDP in Local Currency / PPP Exchange Rate

Here, the PPP exchange rate equalizes the purchasing power of different currencies by accounting for the cost of a common basket of goods.

3. GDP Per Capita

The simplest formula for GDP per capita is:

GDP per capita = GDP/Population

Where:

• GDP is the total Gross Domestic Product (either nominal or PPP, depending on the context). 
• Population is the total number of people in the country.

This measures the average economic output (or income) per person. 

Reference

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