The 2021 cycle of the International Comparison Programme (ICP) reflects the commitment of the Economic Commission for Latin America and the Caribbean (ECLAC) to strengthening the region’s statistical systems and ensuring the Programme’s continuity, in keeping with the guidelines of the International Comparison Programme Global Office of the World Bank.

Among the entities tasked with compiling economic data, ECLAC covers the third-highest number of countries and territories, although the region accounts for just 7.3% of global GDP. This was a significant challenge, all the more so given the consistent efforts required of national implementation agencies, especially in the Caribbean, to fulfil the objectives. The 32 economies (13 from Latin America and 19 from the Caribbean) in the 2021 cycle were: Anguilla, Antigua and Barbuda, Argentina, Aruba, Belize, Bermuda, Bonaire, Brazil, British Virgin Islands, Caiman Islands, Curaçao, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Honduras, Jamaica, Montserrat, Nicaragua, Panama, Paraguay, Peru, Plurinational State of Bolivia, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago and Uruguay.

Of the many challenges that marked this cycle, the most notable was the coronavirus disease (COVID-19) pandemic, which led to its postponement from 2020 to 2021 and delayed a series of activities. As data collection in the region began in 2019, price data for some of the economies in the 2021 cycle reflected pre-pandemic cost structures. Multiple challenges emerged throughout the process, from data collection and processing to the publication of results. Each of these issues was nonetheless addressed, as ECLAC was committed to implementing and completing this cycle.

To understand the methodology of the International Comparison Programme, it is necessary to understand the process of calculating purchasing power parities (PPPs). This document aims to highlight the most important aspects of the process used to calculate the results of the 2021 cycle. It provides a methodical description of the steps required for calculating PPPs and the related indicators prepared by ECLAC for participating economies, in line with the international recommendations of the World Bank, which is recognized as a global authority on the matter.