Download THE INTERNATIONAL COMPARISON PROGRAM (ICP) AND PURCHASING POWER PARITIES (PPP)

THE INTERNATIONAL
COMPARISON PROGRAM (ICP)
AND PURCHASING POWER
PARITIES (PPP)
BACKGROUND
‰ The International Comparison Program is
commonly known as the ICP;
‰ A global statistical initiative to collect
comparative price data to estimate Purchasing
Power Parities (PPPs);
‰ The use of PPPs (instead of market exchange
rates) makes it possible to meaningfully
compare output of economies and the welfare
of their inhabitants in real terms (i.e. controlling
for differences in price levels).
OBJECTIVES
strengthen
technical
capacities
of
Caribbean governments’ statistical offices to
participate in ICP data collection;
‰ To
‰ To conduct surveys to collect price data in
Caribbean Countries to be used in estimating
the PPPs;
‰ Building a network of institutions and experts to
enhance the capacity development process of
the statistical organizations;
MAIN OUTPUTS
‰ Four regional workshops to determine a
harmonized and comparable basket of goods
for pricing and eventual generation of the PPPs
for Caribbean countries and to inform National
Accounts personnel in the participant countries
on an appropriate weighting structure for their
accounts resulting in a list of goods and
services to be used to calculate the final
consumption expenditure component of the
GDP;
MAIN OUTPUTS (cont’d)
‰ Indirect estimation of ‘Other Expenditure of
GDP’ for the calculation of relevant PPPs;
‰ Capacity
strengthening
of
participating
countries in the areas of price collection,
National Accounts and the procedures to
calculate PPPs.
PARTNERS
‰ CARICOM;
‰ OECS;
‰ CDB;
‰ ECLAC Santiago (Division of Statistics)
CONCLUSION
CDCC
• Caribbean countries were given
exemption from collecting prices in 2011
unlike other countries;
• Reasons: conduct of PHCs in 2010 and
capacity constraints of small offices;
• Special attention in terms of TA will have
to be given to smaller countries to develop
their National Accounts statistics;
• Funding of ICP process is presenting
many challenges.
THANK YOU
Sylvan Roberts
Coordinator
Statistics and Social Development Unit
Port-of-Spain, Trinidad and Tobago
Tel: (868) 623-5595; Fax: (868) 623-8485
Email: [email protected]