Iran, Islamic Rep. | PPP conversion factor, GDP (LCU per international $)
Purchasing power parity (PPP) conversion factor is a spatial price deflator and currency converter that controls for price level differences between countries, thereby allowing volume comparisons of gross domestic product (GDP) and its expenditure components. This conversion factor is for GDP. Development relevance: PPP can be used to convert national accounts data, like GDP and its expenditure components, into a common currency, while also eliminating the effect of price level differences between countries. They can also be used to derive price level indexes (PLIs), the ratio of a country’s PPP to its market exchange rate, to directly compare price levels across countries. PPPs and the PLIs and real (or PPP-adjusted) expenditures to which they give rise allow for many use-cases, but they are particularly valuable for empirical work involving comparisons of per capita consumption or levels of GDP (or other GDP aggregates) across countries and for the measurement of global poverty and global income inequality. The breadth and depth of ICP data allows its use-cases to cover other areas of economics, including empirical analyses of economic growth, productivity and trade, and even beyond, for instance, to help track global targets such as the UN Sustainable Development Goals related to health, education, energy and emissions and labor. Other applications of ICP data include their use in the construction of indexes, for example cost-of-living measures. Uses-cases can even be extended into the policymaking domain at all levels (global, regional and national) given the increased importance of cross-country benchmarking, among other possibilities. Recommended uses of PPPs include: To make spatial comparisons of GDP and its expenditure components | To make spatial comparisons of price levels | To group countries by their per capita volume indexes and price level indexes Recommended uses of PPPs with limitations include: To analyze changes over time in relative GDP per capita and relative prices | To analyze price convergence | To make spatial comparisons of the cost of living | To use PPPs calculated for GDP and its expenditure components as deflators for other values. Limitations and exceptions: Global PPP estimates provided by ICP are produced by the ICP Global Office and regional implementing agencies, based on data supplied by participating countries, and in accordance with the methodology recommended by the ICP Technical Advisory Group and approved by the ICP Governing Board. As such, these results are not produced by participating countries as part of their national official statistics. PPPs are not recommended use: As a precise measure to establish strict rankings of countries | As a means of constructing national growth rates | As a measure to generate output and productivity comparisons by industry | As an indicator of the undervaluation or overvaluation of currencies | As an equilibrium exchange rate. Statistical concept and methodology: PPPs are both currency conversion factors and spatial price indexes. PPPs convert different currencies to a common currency and, in the process of conversion, equalize their purchasing power by controlling differences in price levels between countries. Typically, higher income countries have higher price levels, while lower income countries have lower price levels (Balassa-Samuelson effect). Market exchange rate-based cross-country comparisons of GDP at its expenditure components reflect both differences in economic outputs (volumes) and prices. Given the differences in price levels, the size of higher income countries is inflated, while the size of lower income countries is depressed in the comparison. PPP-based cross-country comparisons of GDP at its expenditure components only reflect differences in economic outputs (volume), as PPPs control for price level differences between the countries. Hence, the comparison reflects the real size of the countries. The International Comparison Program (ICP) estimates PPPs for the world’s countries. The ICP is conducted as a global partnership of countries, multilateral agencies, and academia. The most recent 2017 ICP comparison covered 176 countries, including 47 Eurostat-OECD countries. For countries that have not participated in ICP comparisons, the PPP are imputed based on a regression model. ICP estimated PPPs cover years from 2011 to 2017. WDI extrapolates 2011 PPPs for years earlier years, and 2017 PPPs for later years. Description of WDI extrapolation approach is available here: https://datahelpdesk.worldbank.org/knowledgebase/articles/665452-how-do-you-extrapolate-the-ppp-conversion-factors For the member countries of Eurostat-OECD PPP Programme, PPP conversion factors are periodically updated based on the organizations’ databases. For Eurostat-OECD PPP Programme, please refer to the following websites. (http://www.oecd.org/sdd/prices-ppp/) (https://ec.europa.eu/eurostat/web/purchasing-power-parities/overview) For more information on the ICP and PPPs, please refer to the ICP website at https://www.worldbank.org/en/programs/icp.
Publisher
The World Bank
Origin
Islamic Republic of Iran
Records
63
Source
Iran, Islamic Rep. | PPP conversion factor, GDP (LCU per international $)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
96.68278668 1990
117.47732266 1991
148.56138872 1992
217.53253013 1993
285.25318724 1994
385.38985677 1995
487.58429103 1996
553.747801 1997
598.95629459 1998
777.90988009 1999
950.30739367 2000
1066.96614569 2001
1347.69663268 2002
1495.22561799 2003
1815.92281003 2004
2115.77820132 2005
2351.74837914 2006
2815.13754279 2007
3298.62755203 2008
3428.34138158 2009
3925.67360386 2010
4758.86962891 2011
6093.5625 2012
8503.84667969 2013
9758.55371094 2014
10701.56152344 2015
11796.81054688 2016
13061.29492188 2017
16790.39244725 2018
21531.06399586 2019
30661.67801218 2020
45869.41180454 2021
64529.24228794 2022
Iran, Islamic Rep. | PPP conversion factor, GDP (LCU per international $)
Purchasing power parity (PPP) conversion factor is a spatial price deflator and currency converter that controls for price level differences between countries, thereby allowing volume comparisons of gross domestic product (GDP) and its expenditure components. This conversion factor is for GDP. Development relevance: PPP can be used to convert national accounts data, like GDP and its expenditure components, into a common currency, while also eliminating the effect of price level differences between countries. They can also be used to derive price level indexes (PLIs), the ratio of a country’s PPP to its market exchange rate, to directly compare price levels across countries. PPPs and the PLIs and real (or PPP-adjusted) expenditures to which they give rise allow for many use-cases, but they are particularly valuable for empirical work involving comparisons of per capita consumption or levels of GDP (or other GDP aggregates) across countries and for the measurement of global poverty and global income inequality. The breadth and depth of ICP data allows its use-cases to cover other areas of economics, including empirical analyses of economic growth, productivity and trade, and even beyond, for instance, to help track global targets such as the UN Sustainable Development Goals related to health, education, energy and emissions and labor. Other applications of ICP data include their use in the construction of indexes, for example cost-of-living measures. Uses-cases can even be extended into the policymaking domain at all levels (global, regional and national) given the increased importance of cross-country benchmarking, among other possibilities. Recommended uses of PPPs include: To make spatial comparisons of GDP and its expenditure components | To make spatial comparisons of price levels | To group countries by their per capita volume indexes and price level indexes Recommended uses of PPPs with limitations include: To analyze changes over time in relative GDP per capita and relative prices | To analyze price convergence | To make spatial comparisons of the cost of living | To use PPPs calculated for GDP and its expenditure components as deflators for other values. Limitations and exceptions: Global PPP estimates provided by ICP are produced by the ICP Global Office and regional implementing agencies, based on data supplied by participating countries, and in accordance with the methodology recommended by the ICP Technical Advisory Group and approved by the ICP Governing Board. As such, these results are not produced by participating countries as part of their national official statistics. PPPs are not recommended use: As a precise measure to establish strict rankings of countries | As a means of constructing national growth rates | As a measure to generate output and productivity comparisons by industry | As an indicator of the undervaluation or overvaluation of currencies | As an equilibrium exchange rate. Statistical concept and methodology: PPPs are both currency conversion factors and spatial price indexes. PPPs convert different currencies to a common currency and, in the process of conversion, equalize their purchasing power by controlling differences in price levels between countries. Typically, higher income countries have higher price levels, while lower income countries have lower price levels (Balassa-Samuelson effect). Market exchange rate-based cross-country comparisons of GDP at its expenditure components reflect both differences in economic outputs (volumes) and prices. Given the differences in price levels, the size of higher income countries is inflated, while the size of lower income countries is depressed in the comparison. PPP-based cross-country comparisons of GDP at its expenditure components only reflect differences in economic outputs (volume), as PPPs control for price level differences between the countries. Hence, the comparison reflects the real size of the countries. The International Comparison Program (ICP) estimates PPPs for the world’s countries. The ICP is conducted as a global partnership of countries, multilateral agencies, and academia. The most recent 2017 ICP comparison covered 176 countries, including 47 Eurostat-OECD countries. For countries that have not participated in ICP comparisons, the PPP are imputed based on a regression model. ICP estimated PPPs cover years from 2011 to 2017. WDI extrapolates 2011 PPPs for years earlier years, and 2017 PPPs for later years. Description of WDI extrapolation approach is available here: https://datahelpdesk.worldbank.org/knowledgebase/articles/665452-how-do-you-extrapolate-the-ppp-conversion-factors For the member countries of Eurostat-OECD PPP Programme, PPP conversion factors are periodically updated based on the organizations’ databases. For Eurostat-OECD PPP Programme, please refer to the following websites. (http://www.oecd.org/sdd/prices-ppp/) (https://ec.europa.eu/eurostat/web/purchasing-power-parities/overview) For more information on the ICP and PPPs, please refer to the ICP website at https://www.worldbank.org/en/programs/icp.
Publisher
The World Bank
Origin
Islamic Republic of Iran
Records
63
Source