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From The World Bank Group
2005 International Comparison Program
Global Purchasing Power Parities and Real Expenditures
2008 by the International Bank for Reconstruction and Development/The World Bank

The 2005 International Comparison Program has produced estimates of the relative price levels of GDP and its principal aggregates for 146 economies. These purchasing power parities express the values of local currencies in relation to a common currency. In this report, the common currency is the U.S. dollar in 2005. When applied to the value of GDP or any component of GDP, the resulting values reflect the real value of consumption in each economy, corrected for differences in price levels and unaffected by transitory movements of exchange rates. This report provides PPPs and related measures for GDP, actual individual consumption by households, collective consumption of governments, and gross fixed capital formation. Additional tables provide the same data for several important components of the GDP (such as food, clothing, and housing, to name a few). The 146 economies account for more than 95 percent of the world’s population and 98 percent of the world’s nominal GDP. Table 8 lists the economies not included in the 2005 benchmark surveys along with estimates of their PPPbased GDP per capita (computed as described in the section “Estimation of PPPs for nonbenchmark economies”).
Acronyms and Abbreviations

Part I: Purchasing Power Parities and 2005 ICP Results
The International Comparison Program and Purchasing Power Parities
The International Comparison Program (commonly known as the “ICP”) is a worldwide statistical initiative to collect comparative price data and estimate purchasing power parities (PPPs) of the world’s economies. Using PPPs instead of market exchange rates to convert currencies makes it possible to compare the output of economies and the welfare of their inhabitants in real terms (that is, controlling for differences in price levels).
The System of National Accounts, 1993 (SNA93) provides a common international framework for the measurement of economic activity. Gross domestic product (GDP) is the measure most often used to quantify economies’ economic activity, and GDP and consumption per capita are basic indicators of economic productivity and well-being. But the conversion of output or expenditures, measured in the local currency of one economy, to a common unit of account for comparison or aggregation with that of other economies is not a trivial problem. The standard method has been to use market exchange rates. However, market exchange rates are determined by the demand for, and supply of, currencies used in international transactions. They do not necessarily reflect differences in price levels and may therefore under- or overstate the real value of an economy’s output and the standard of living of its residents.

Purchasing Power Parities and 2005 ICP Results
The International Comparison Program
Purchasing Power Parity
Price Level Indexes
The Use of PPPs and Market Exchange Rates for International Comparisons
Reliability of PPPs and GDP Volume Measures
2005 ICP: Results and Major Findings
About the Data
Description of the Tables

Tables of Results

Part II: Technical Notes of the 2005 ICP
Data Requirements
National Accounts Data
Price Data: Household Consumption Expenditure
Representativity and Comparability
Price Data: Government Final Consumption Expenditure
Price Data: Gross Fixed Capital Formation
Changes in inventories
Balance of exports and imports
Reference PPPs
Comparison-Resistant Areas
Housing Rent
Machinery and Equipment
Data Validation
Data Validation: Prices
Data Validation: National Accounts
Data Issues and Accuracy
Methodology: Calculating PPPs
Annual National Average Prices
Calculating PPPs at the Basic-Heading Level
PPPs for GDP and its Major Aggregates within a Region
Combining Regional Results with a Global Comparison: The Ring Comparison
Estimation of PPPs for Nonbenchmark Economies

A History of The ICP
B Governance of the ICP 2005
C The ICP Classification of Expenditure on GDP
D Productivity Adjustment in the Government Sector
E Estimating Average Prices for Household Consumption Items of China
F Comparison of Methodology Used between ICP and Eurostat-OECD Regions to Compute PPPs and      Calibrate Them to the Global Level
G Comparisons of New 2005 PPPs with Those Estimated by Extrapolating from Previous Benchmark Surveys.
H Estimation of Between-Region Linking Factors
I  ICP Software

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