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
Global
Records
6838
Source
PPP conversion factor, GDP (LCU per international $)
country_code year value
ABW 1990
AFG 1990
AGO 1990 1.0E-8
ALB 1990 1.87920072
AND 1990
ARB 1990
ARE 1990 1.40183861
ARG 1990 0.30123382
ARM 1990 0.00587848
ASM 1990
ATG 1990 1.75680276
AUS 1990 1.365183
AUT 1990 0.920963
AZE 1990 7.44E-6
BDI 1990 50.93492433
BEL 1990 0.914107
BEN 1990 113.38008783
BFA 1990 175.60369574
BGD 1990 11.76067593
BGR 1990 0.001003
BHR 1990 0.14130473
BHS 1990 0.61658902
BIH 1990
BLR 1990 1.0E-8
BLZ 1990 1.31920207
BMU 1990 1.02405902
BOL 1990 0.94002974
BRA 1990 1.156E-5
BRB 1990 1.67529183
BRN 1990 0.45055878
BTN 1990 6.50091028
BWA 1990 0.97636359
CAF 1990 223.16715808
CAN 1990 1.240115
CEB 1990
CHE 1990 1.933595
CHI 1990
CHL 1990 169.165217
CHN 1990 1.68517143
CIV 1990 116.07130004
CMR 1990 146.59637748
COD 1990 0
COG 1990 93.97864402
COL 1990 121.21808455
COM 1990 159.93703688
CPV 1990 58.70084645
CRI 1990 43.49203013
CSS 1990
CUB 1990
CUW 1990
CYM 1990
CYP 1990 0.57136906
CZE 1990 5.552045
DEU 1990 0.94455
DJI 1990
DMA 1990 1.45557868
DNK 1990 9.131424
DOM 1990 2.37140537
DZA 1990 3.24182194
EAP 1990
EAR 1990
EAS 1990
ECA 1990
ECS 1990
ECU 1990 0.30866807
EGY 1990 0.438437
EMU 1990
ERI 1990
ESP 1990 0.618573
EST 1990
ETH 1990 1.24379626
EUU 1990
FCS 1990
FIN 1990 1.005099
FJI 1990 0.71366199
FRA 1990 1.024996
FRO 1990
FSM 1990 0.86885592
GAB 1990 135.03008227
GBR 1990 0.635071
GEO 1990 6.0E-7
GHA 1990 0.01058327
GIB 1990
GIN 1990 319.33394931
GMB 1990 2.79877612
GNB 1990 7.96571249
GNQ 1990 110.70314129
GRC 1990 0.335841
GRD 1990 1.66619101
GRL 1990
GTM 1990 1.12363637
GUM 1990
GUY 1990 11.46848068
HIC 1990
HKG 1990 6.02546323
HND 1990 1.23417482
HPC 1990
HRV 1990
HTI 1990
HUN 1990

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
Global
Records
6838
Source