The Purchasing Power Parities pilot project (PPP)

Transcription

1 The Purchasing Power Parities pilot project (PPP) Document CARDS/PGSC/2003/06 SECOND CARDS POLICY GROUP ON STATISTICAL CO-OPERATION OF 23 AND 24 OCTOBER 2003 EUROSTAT UNIT A5 CARDS TEAM

2 PURCHASING POWER PARITIES (PPPS) FOR WESTERN BALKAN COUNTRIES (WBC) David Roberts, OECD, Sarajevo, October THE PROJECT 2 1

3 PPPs for WBC is one of three statistical pilot projects proposed by Eurostat for the Western Balkans under the CARDS Multi-Beneficiary Programme The aim of the PPP Project is to develop the capability of WBC to participate in international volume comparisons of GDP International volume comparisons of GDP are made difficult by the GDPs of different countries being: expressed in national currencies valued at national price levels 3 Therefore, necessary to: convert the GDPs to a common currency value the GDPs at a uniform price level This requires currency converters/price deflators that: revalue the GDPs at a uniform price level when converting them to a common currency Such currency converters/price deflators are called purchasing power parities or PPPs 4 2

4 Therefore, the Project s overall objective is to develop the capability of WBC to collect - in unison with other countries - the data required to calculate PPPs Project s specific objectives are: to familiarise WBC with the organisation & methods of the Eurostat PPP Programme by including WBC in the three-year round of surveys for ECP 2005 which started in On completion of the project, WBC will have: participated in a GDP comparison covering 15 EU Member States & 13 candidate countries acquired the know-how to continue participating in the ECP following Eurostat procedures developed closer working relations between their national statistical agencies improved the infrastructures underpinning their price statistics & national accounts 6 3

5 EUROPEAN COMPARISON PROGRAMME 7 ECP was launched in 1979 by the UNECE as a regional programme of the UN-ICP Seven rounds to date: 1980, 1985, 1990, 1993, 1996, 1999 & 2002 First four rounds , 1985, 1990, covered two groups: Western Europe, Central/Eastern Europe Fifth round introduction of a third group comprising 8 CIS countries & Mongolia Sixth & seventh rounds & introduction & implementation of the ECP reform Eight round introduction of WBC 8 4

6 Number of countries by groups & round Round Groups I II III Total / ?? 9 After ECP reform Group 1 sub-divided into: Eurostat countries (31): Northern group led by Finland (10) Central group led by Austria (11) Southern group led by Italy (10) OECD countries (14): Miscellaneous group led by the OECD (9) Western Balkan group led by Slovenia (5) All groups linked at the product level through overlap products (not through bridge countries as before) 10 5

7 ECP comparisons made from the expenditure side a breakdown of final expenditure on GDP by product group according to a common classification ECP comparisons estimate volumes indirectly by dividing expenditure values by their underlying prices a set of national annual purchasers prices for a selection of products chosen from a common basket of well-defined goods & services Both expenditures & prices should refer to the year of the comparison & cover the whole range of final products included in GDP 11 DATA REQUIREMENTS & TIMETABLE 12 6

8 A detailed breakdown of GDP for 2005 or a breakdown by main aggregates for 2005 with a detailed breakdown for 2004 or 2003 One-point-in-time capital city purchasers prices for consumer goods & services (except rents) Detailed indices from CPI to convert one-pointin-time prices to annual average prices Annual national rents - both actual & imputed - &/or details of national housing stock 13 National mid-year (July) prices for equipment goods & construction projects Annual compensation of employees paid by general government for selected occupations in health, education & collective services Annual average of daily market X-rates & mid-year population for

9 Pricing of consumer products - WBC organised by SORS : Food, drink & tobacco : Personal appearance : House & garden : Transport, restaurants & hotels : Services : Health & furniture 15 Other data required - WBC organised by the OECD 2005: Equipment goods & construction projects 2006 (for 2005): Actual & imputed rents/national housing stock Compensation of employees Exchange rates & mid-year population 2006/2007 (for 2005): Detailed expenditures on GDP 2004 (for 2003) /2005 (for 2004) /2006 (for 2005): CPIsby basic heading 16 8

10 PROGRESS TO DATE 17 Introductory workshop: Geneva, November 2001 First visits to WBC by SORS & OECD: Jan./Feb First pre-survey by WBC: March 2003 First group meeting: Ljubljana, April 2003 First price survey undertaken by WBC: May/June 2003 Second pre-survey by WBC: September 2003 Second group meeting: Ljubljana, October 2003 Second price survey by WBC: Nov./Dec

11 Are there any questions? 19 10