Question and answer (ppp)

1. What does purchasing power parity survey measure?

The purchasing power parity survey is international statistics cooperation that measures relative price level differences across participating countries

2. What is purchasing power parity survey used for?

The results of the survey are used to convert National accounts aggregates like Gross Domestic Product (GDP) per capita and Actual Individual Consumption (AIC) per capita, such that volume is taken into consideration in cross country comparisons. By adjusting the price level, then one avoids overvaluation for countries with high price levels and undervaluation for countries with low price levels. In addition, results of the survey are used as basis for analysis in the comparison of relative price levels across participating countries.

3. What does the size of the price level adjusted Gross Domestic Product (GDP) per capita tells us?

Price level adjusted GDP per capita shows the volume of everything that is made and produced in a certain country, and is often used as a measure of the general standard of living of a country.

4. Is the price level adjusted GDP per capita a measure of general buying capacity of the consumer?

In comparing the purchasing power or the general standard of living of consumers in different countries, it is more useful to focus on the indicator “price level adjusted actual individual consumption per capita”. This indicator is composed only of goods and services of private households and part of the government expenditures paid for by individuals, such as health services and education.

5. Where can I find the price level and volume table on a more detailed level?

In The Statistical Office of the European Communities (EUROSTAT) statistics database, one can find specific price level and volume tables for the main and sub groups of goods and services of private consumption, investment goods, investment in buildings and construction and government expenditures.

6. Where can I find similar statistics which also includes land outside Europe?

OECD regularly publishes figures for price level and price level adjust GDP per capita for OECD member countries.

The International Comparison Programme (ICP) today is international statistics cooperation between 150 countries divided according to the regions of the world. The last collaboration was done under the auspices of the United Nations and The World Bank in 2005 (146 countries). The ICP produces internationally comparable price level; price level adjusted Gross Domestic Product (GDP) and Actual Individual Consumption per capita, as well as other key figures.