difference between the OER- and PPP-
denominated GDP values for most of the weathly industrialized countries
are generally much smaller.

GDP - composition by sector: This entry gives the percentage
contribution of agriculture, industry, and services to total GDP. The
distribution will total less than 100 percent if the data are
incomplete.

GDP - per capita (PPP): 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.

GDP methodology: In the Economy category, GDP dollar estimates for
countries are reported both on an official exchange rate (OER) and a
purchasing power parity (PPP) basis. Both measures contain information
that is useful to the reader. 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 probably provides the best
available starting point for comparisons of economic strength and well-
being between countries. In contrast, the currency exchange rate method
involves a variety of international and domestic financial forces that
may not capture the value of domestic output. 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. Whereas PPP estimates for OECD
countries are quite reliable, PPP estimates for developing countries
are often rough approximations. In developing countries with weak
currencies, the exchange rate estimate of GDP in dollars is typically
one-fourth to one-half the PPP estimate. Most of the GDP estimates for
developing countries 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. GDP derived using the OER method
should be used for the purpose of calculating the share of items such
as exports, imports, military expenditures, external debt, or the
current