Convert GDP to a Common Currency
How to Convert GDP to a Common Currency?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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How to Convert GDP to a Common Currency?
Converting GDP of two countries using different currencies requires the use of exchange rates.
Exchange rates are expressed either as the units of country A’s currency that need to be traded for a single unit of country B’s currency
Using the exchange rate to convert GDP from one currency to another is as follows:
Step 1. Determine the exchange rate for the specified year.
Step 2. Convert foreign country’s GDP into U.S. dollars by calculating the GDP per capita. Then multiply this number by the exchange rate.
Step 3. Compare this value to the GDP per capita of the foreign country to the GDP per capita in the United States in the same year.
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