Antigua and Barbuda: Price level ratio of PPP conversion factor (GDP) to market exchange rate
Statistiken: Price level ratio of PPP conversion factor (GDP) to market exchange rate
|Datum||1990 - 2019|
|Vorheriger Wert||0.8 (2018)|
Definition: Price level ratio of PPP conversion factor (GDP) to market exchange rate
Purchasing power parity conversion factor is the number of units of a country's currency required to buy the same amount of goods and services in the domestic market as a U.S. dollar would buy in the United States. The ratio of PPP conversion factor to market exchange rate is the result obtained by dividing the PPP conversion factor by the market exchange rate. The ratio, also referred to as the national price level, makes it possible to compare the cost of the bundle of goods that make up gross domestic product (GDP) across countries. It tells how many dollars are needed to buy a dollar's worth of goods in the country as compared to the United States. PPP conversion factors are based on the 2011 ICP round.
Zeitplan - Antigua and Barbuda: Price level ratio of PPP conversion factor (GDP) to market exchange rate (1990 - 2019)
Relevanz der Entwicklung: Price level ratio of PPP conversion factor (GDP) to market exchange rate
In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world.
Einschränkungen und Ausnahmen: Price level ratio of PPP conversion factor (GDP) to market exchange rate
Official or market exchange rates are often used to convert economic statistics in local currencies to a common currency in order to make comparisons across countries. Since market rates reflect at best the relative prices of tradable goods, the volume of goods and services that a U.S. dollar buys in the United States may not correspond to what a U.S. dollar converted to another country's currency at the official exchange rate would buy in that country, particularly when nontradable goods and services account for a significant share of a country's output. An alternative exchange rate - the purchasing power parity (PPP) conversion factor - is preferred because it reflects differences in price levels for both tradable and nontradable goods and services and therefore provides a more meaningful comparison of real output.
Statistisches Konzept und Methodik: Price level ratio of PPP conversion factor (GDP) to market exchange rate
The ratio of the PPP conversion factor to the market exchange rate - the national price level or comparative price level - measures differences in the price level at the gross domestic product (GDP) level. The price level index tends to be lower in poorer countries and to rise with income.