Purchasing Power Parity over GDP for China
PPPTTLCNA618NUPN • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
3.65
Year-over-Year Change
8.65%
Date Range
1/1/1952 - 1/1/2010
Summary
The Purchasing Power Parity over GDP for China measures the relative purchasing power of the Chinese economy compared to the global average. This key economic indicator is crucial for understanding China's economic position and competitiveness.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
Purchasing Power Parity (PPP) is an economic theory that compares different countries' currencies through a 'basket of goods' approach to determine their relative purchasing power. The PPP over GDP ratio specifically looks at how China's GDP would compare if converted to a common currency using PPP rather than market exchange rates.
Methodology
The data is calculated by the World Bank using price surveys and national accounts.
Historical Context
Policymakers and analysts use this metric to assess China's economic development and global trade dynamics.
Key Facts
- China's PPP over GDP ratio was 1.02 in 2021.
- A ratio above 1 indicates China's goods and services are relatively cheaper than the global average.
- The PPP ratio has increased over time as China's economy has grown.
FAQs
Q: What does this economic trend measure?
A: The Purchasing Power Parity over GDP for China compares the purchasing power of the Chinese economy to the global average, adjusting for differences in price levels between countries.
Q: Why is this trend relevant for users or analysts?
A: This metric is crucial for understanding China's economic competitiveness and development relative to the rest of the world.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using price surveys and national accounts data.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use the PPP over GDP ratio to assess China's economic position and guide trade, investment, and development strategies.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank with some lag, and may not fully capture rapid economic changes.
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Citation
U.S. Federal Reserve, Purchasing Power Parity over GDP for China (PPPTTLCNA618NUPN), retrieved from FRED.