ICP 2021 cycle results are now available at icp.worldbank.org. This blog series covers all aspects of the ICP and explores the use made of these data by researchers, policy makers, economists, data scientists, and others. We encourage users to share their data applications and findings in this blog series via icp@worldbank.org
New economic indicators from the International Comparison Program (ICP) deliver in-depth insights into the state of the global economy and material well-being across the world in 2021. The purchasing power parities (PPPs) produced by the program are a vital global data public good, enabling comparisons between countries across a wide range of socioeconomic and development measures. The PPP-based data is also crucial for monitoring progress towards many of the Sustainable Development Goals.
The ICP, now in its 56th year, is one of the most extensive and long-standing global statistical initiatives in the world. The 2021 cycle, covering 176 economies, marks the tenth global economic assessment since the initiative was launched. The ICP relies on a unique multi-agency partnership of international, regional, sub-regional, and national statistical agencies working to a common set of standards and methodology. The successful completion of the ICP 2021 cycle is testament to the resilience and dedication of these institutions, which navigated the unprecedented challenges posed by the COVID-19 pandemic to deliver jointly the invaluable ICP results.
How are the ICP’s PPP-based estimates different from market exchange rate-based GDP estimates? PPPs provide a more accurate measure of living standards across countries because they account for the varying price levels of goods and services. This means they can better reflect what money can buy in different countries – establishing purchasing power parity. Market exchange rate-based estimates do not make this adjustment, often inflating the buying power of high-income countries (where prices are high) and underestimating that of low-income ones (where prices are relatively low). In contrast, PPP-based GDP estimates offer a view of a country’s GDP that is not skewed by price differences or affected by market exchange rate fluctuations.
Delve into the key findings from the new purchasing power parity data and engage with the interactive visualizations below.
