>>509779771It is.
GDP per Capita PPP -
Iceland 81.215
Romania 49.213
Per Capita is *THE* good metric to compare economies. Because it takes into account the price of shit.
So, in general, as in officially, the nominal GDP per capita of these two countries is the total amount of economic output divided by it's population.
So at first glance it appears Iceland is nearly 30 times better off than Romania.
However, once we adjust to see how much it costs to create shit in one country relative to the total wealth available to that country we realise that Iceland isn't even twice as rich as Romania.
Why is it like this?
Because the nominal just presents the official prices, average things may be 30 times more expansinve in Iceland but that does not mean that Iceland produces 30 times more things than Romania.
In fact despite Iceland being 30 times more expensive, they aren't even able to produce two times as much.
My explanation wasn't good was it?
Don't be a fool about it - read about purchasing power parity and you'll be convinced it's the real way to compare economy.
And by the way, you'll also realise how unbelievably poor the USA is once you stop counting access to dollars as wealth and focus on actual economic output.