Iceland GDP per capita (Purchasing Power Parity PPP)

The GDP dollar estimates given on this page are derived from purchasing power parity (PPP) calculations. Using a PPP basis is arguably more useful when comparing generalized differences in living standards on the whole between nations because PPP takes into account the relative cost of living and the inflation rates of the countries, rather than using just exchange rates which may distort the real differences in income. However, economies do self-adjust to currency changes over time, and technology intensive and luxury goods, raw materials and energy prices are mostly unaffected by difference in currency (the latter more by subsidies), despite being critical to national development, therefore, the sales of foreign apparel or gasoline per liter in China is more accurately measured by the nominal figure, but everyday food and haircuts by PPP. The gross domestic product per capita is the value of all final goods and services produced within a nation in a given year divided by the average (or mid-year) population for the same year. The gross domestic product (GDP) is one of the measures of national income and output for a given country's economy. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products, in the period. Third, it is equal to the sum of the income generated by production in the country in the period—that is, compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or profits). source (wikipedia)