The DEC alternative conversion factor is the underlying annual exchange rate used for the World Bank Atlas method. As a rule, it is the official exchange rate reported in the IMF's International Financial Statistics (line rf). Exceptions arise where further refinements are made by World Bank staff. It is expressed in local currency units per U.S. dollar.
Official exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U.S. dollar).
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. Official exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U.S. dollar). The ratio of the PPP conversion factor to the official exchange rate (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.
Consumer price indices measure the change in the prices of a basket of goods and services that are typically purchased by specific groups of households. For the indices in these tables, the groups of households have been broadly defined and cover virtually all households except for "institutional” households – prisons and military barracks for example – and, in some countries, households in the highest income group. The index for food covers food and non-alcoholic beverages but excludes purchases in restaurants. The index for energy is intended to cover all forms of energy, including fuels for motor vehicles, heating and other household uses.
Consumer price indices measure the change in the prices of a basket of goods and services that are typically purchased by specific groups of households. For the indices in these tables, the groups of households have been broadly defined and cover virtually all households except for "institutional” households – prisons and military barracks for example – and, in some countries, households in the highest income group. The index for food covers food and non-alcoholic beverages but excludes purchases in restaurants. The index for energy is intended to cover all forms of energy, including fuels for motor vehicles, heating and other household uses.
Consumer price indices measure the change in the prices of a basket of goods and services that are typically purchased by specific groups of households. For the indices in these tables, the groups of households have been broadly defined and cover virtually all households except for "institutional” households – prisons and military barracks for example – and, in some countries, households in the highest income group. The index for food covers food and non-alcoholic beverages but excludes purchases in restaurants. The index for energy is intended to cover all forms of energy, including fuels for motor vehicles, heating and other household uses.
These interest rates refer to government bonds with a residual maturity of about ten years. They are not the interest rates at which the loans were issued, but the interest rates implied by the prices at which the bonds are traded on financial markets. For example if a bond was initially bought for 100 with an interest rate of 9%, but the bond is now trading at 90, the interest rate has risen to 10% ([9/90] x 100).
Producer prices are defined as "ex-factory prices” and exclude any taxes, transport and trade margins that the purchaser may have to pay. Manufacturing covers the production of semi-processed goods and other intermediate goods as well as final products such as consumer goods and capital equipment.
PPPs are currency converters that equalise price levels between countries. The PPPs shown here have been calculated by comparing the prices in OECD countries of a common basket of about 2 500 goods and services. Countries are not required to price all the items in the common basket because some of the items may be hard to find in certain countries, but the common basket has been drawn up in such a way that each country can find prices for a wide range of the goods and services that are representative of their markets. The goods and services to be priced cover all those that enter into final expenditure – household consumption, government services, capital formation and net exports. Prices for the different items are weighted by their shares in total final expenditures to obtain the GDP PPPs shown here.
PPPs are currency converters that equalise price levels between countries. The PPPs shown here have been calculated by comparing the prices in OECD countries of a common basket of about 2 500 goods and services. Countries are not required to price all the items in the common basket because some of the items may be hard to find in certain countries, but the common basket has been drawn up in such a way that each country can find prices for a wide range of the goods and services that are representative of their markets. The goods and services to be priced cover all those that enter into final expenditure – household consumption, government services, capital formation and net exports. Prices for the different items are weighted by their shares in total final expenditures to obtain the GDP PPPs shown here.
PPPs are currency converters that equalise price levels between countries. The PPPs shown here have been calculated by comparing the prices in OECD countries of a common basket of about 2 500 goods and services. Countries are not required to price all the items in the common basket because some of the items may be hard to find in certain countries, but the common basket has been drawn up in such a way that each country can find prices for a wide range of the goods and services that are representative of their markets. The goods and services to be priced cover all those that enter into final expenditure – household consumption, government services, capital formation and net exports. Prices for the different items are weighted by their shares in total final expenditures to obtain the GDP PPPs shown here.
Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs. 2000 = 100
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