There are many factors that decide "How is the wealth of a country measured?" One factor that is used by most of Economist is GDP based on Purchasing Power Parity(PPP) per capita. GDP or Gross Domestic Product is the value "how much a country earn?". There are two types of the GDP - Nominal and PPP(Purchasing Power Parity). GDP Nominal The GDP Nominal is calculated by the total value of finished goods and service within that country for a calendar year, using their own currency prices without adjusting for inflation or deflation. GDP Nominal = Total National Income + Production and Services ( without correcting with inflation/ deflation) GDP PPP (Purchasing Power Parity) The GDP PPP gives the more accurate picture of the relative prosperity of each country, It is the measured by calculating the values (in the US Dollar) of a "basket of consumer goods" that are present in that country. For example: If you can buy a pair of shoes in the USA ...