PPP GDP Per Capita for Countries of the World: A Comparison of the New ICP Results with World Bank Data

Abstract

Benchmark estimates of Purchasing Power Parity (PPP) GDP per capita for the year 2011 recently released by the International Comparison Program (ICP) are compared with the corresponding estimates generated by the World Bank from the ICP benchmark years and countries. Large differences are noted between the two sets for many countries. Of the 163 countries for which numbers from both sources are available, the difference is at least $2000 or 25 % in 73 or about 45 % of the cases, and the differences are huge for a sizable proportion of the countries. The numerous users of World Bank data are urged to exercise caution in drawing strong conclusions in cross-country studies in which PPP GDP per capita is often a core variable. As an additional point, while the ICP 2005 was observed to have revealed the world to be more unequal than previously thought, the current ICP might be stated as doing the opposite.