Purchasing Power Parities (PPPs) are currency conversion rates that both convert to a common currency and equalise the purchasing power of different currencies. In other words, they eliminate the differences in price levels between countries in the process of conversion. Under the Joint OECD-Eurostat PPP Programme, the OECD and Eurostat share the responsibility for calculating PPPs.

PPPs are calculated mainly using data collected specifically for the purpose. The Programme provides the framework for the collection and processing of data required to calculate PPPs. Since 1990, PPPs have been calculated every three years for member countries of the OECD - 1993, 1996, 1999 and 2002, 2005 - and annually for EU countries. The next round is 2008, and data collection has started already.

2005 benchmark GDP results are available and published  in the Main Economic Indicators and National Accounts Volume 1. The OECD also calculates PPPs for OECD countries at the GDP and actual individual consumption level on a yearly basis.

Detailed results for 2005 are published in the publication "PPPs and Real Expenditures 2005". Results are also available in OECD.Stat . Detailed methodological information on PPPs can be found in a manual prepared by Eurostat and the OECD:  "Eurostat-OECD Methodological Manual on Purchasing Power Parities ".

PPPs are key statistical tools for international volume comparisons. However, there is a lack of understanding of the methodology and also of how and when PPPs should be used. This site has been set up to provide information on work undertaken by the OECD on PPPs to a wide audience, including extracts from our latest publication statistics and the latest research, reports and papers on PPPs.

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