Purchasing Power Parity over GDP for United Kingdom
PPPTTLGBA618NUPN • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.61
Year-over-Year Change
-2.53%
Date Range
1/1/1950 - 1/1/2010
Summary
The Purchasing Power Parity over GDP for the United Kingdom measures the relative purchasing power of the UK's currency compared to the US dollar, providing insights into the nation's economic 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
This indicator compares the price level of a country's GDP to the price level in the United States, allowing analysis of the real exchange rate and relative standard of living between the two economies.
Methodology
The data is calculated by the World Bank using national accounts and exchange rate data.
Historical Context
Policymakers and analysts use this metric to evaluate trade balances, inflationary pressures, and international competitiveness.
Key Facts
- The UK's PPP over GDP was 0.764 in 2021.
- A PPP over GDP below 1 indicates the UK's currency is undervalued relative to the US dollar.
- This metric can signal inflationary pressures or trade imbalances between the two economies.
FAQs
Q: What does this economic trend measure?
A: The Purchasing Power Parity over GDP for the United Kingdom compares the purchasing power of the British pound to the US dollar, providing insights into the relative price levels and economic competitiveness between the two countries.
Q: Why is this trend relevant for users or analysts?
A: This metric is important for evaluating trade balances, inflationary pressures, and the international competitiveness of the UK economy compared to the United States.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using national accounts and exchange rate data.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this indicator to assess the real exchange rate, monitor trade imbalances, and make decisions regarding international economic policy.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank, with a delay of approximately one year.
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Citation
U.S. Federal Reserve, Purchasing Power Parity over GDP for United Kingdom (PPPTTLGBA618NUPN), retrieved from FRED.