Real GDP and Cost of Living Comparisons:
- Growth rate differentials and contributing factors
- Relative size and structure of the economy
- Implications for national aid eligibility and poverty count
- Wage pressure and competitiveness implications
- Effects of variation in costs on economic well-being
Global Poverty and International Income Inequality:
- Global poverty measurements rely heavily on PPPs. Continuous production of PPP data is important for updating global poverty measures and monitoring the Sustainable Development Goal (SDG) progress
- Guides development policy focus at the local, national and regional levels
- Improves identification of the poor and the viability of global poverty goals
- Rising income inequality has increasingly become a major concern. PPPs are (one of the methods) used to convert the incomes in different countries to a common measure
- Improving growth models and forecasting the future allocation of global income
- Implications for social and political stability, migration flows and geopolitical impact
Health and Education:
- Education and health have direct influence on the levels of poverty and inequality
- Sustained economic growth is closely linked to education
- Effects of high cost of health care
Productivity, Competitiveness, Trade and Investment:
- Comparing the competitiveness and efficiency of production systems across countries
- PPPs infer productivity differences across countries
- Cross-country price data reveals an interesting feature; the positive correlation between levels of development and the price of services relative to tradable goods
- Distortions to the price of tradable capital goods as a barrier to development
- PPPs can be an instrument to compare cross-country investment costs, such as labor and material costs
- Barriers to attracting foreign investments
Energy Efficiency:
- Improvements in energy efficiency bring social, economic and environmental benefits
- Address costs, availability and environmental impact of energy use
- Improved efficiency, health, industrial productivity and product performance
- Wealth creation and social development