International Comparison Program: 2021 cycle in Latin America and the Caribbean. Methodological document and main results
Comparison of economies is essential for public policymaking but considerably hindered by the fact that statistics expressed in local currencies are not directly comparable. Market exchange rates give a distorted view, as they do not reflect the differences in price levels between countries. To overcome this challenge, the International Comparison Program (ICP), coordinated by the World Bank, produces purchasing power parities (PPP). These indicators eliminate price differences, allowing for comparison of real GDP volumes and calculation of the real size of economies. Thirty-six economies of L…