The following is a list of Latin American and Caribbean countries ordered according to their gross domestic product (GDP) at purchasing power parity (PPP) values, the sum of all final goods and services produced by a country in a year, in relation to its purchasing power parity (PPP). This is an economic indicator introduced in the early 1990s by the International Monetary Fund to realistically compare the standard of living between different countries, taking into account the gross domestic product per capita in terms of the cost of living in each country.
Purchasing power parity is one of the most appropriate measures to compare living standards than gross domestic product per capita, since it takes price variations into account. This indicator eliminates the monetary illusion linked to the variation of exchange rates, in such a way that an appreciation or depreciation of a currency will not change the purchasing power parity of a country, since the inhabitants of that country receive their salaries and make your purchases in the same currency. That is, it allows the exchange rates between the various currencies to be such that a currency is allowed to have the same purchasing power anywhere in the world in 2006.