First results from the International Comparison Program in South America : household consumption in 2005
Ryten, Jacob | Ducharme, Louis Marc | Biru, Yonas | Camelo, Heber
In 2003, the World Bank launched a global round of the International Comparison Program (ICP), aimed at measuring the purchasing power parities (PPP) and corresponding price and volume levels of Gross Domestic Product (GDP) on a comparable basis for more than 100 countries, grouped into 5 regions. Although the comparisons involving GDPs adjusted for purchasing power parities are not yet ready, there are preliminary regional results for the major component of GDP -- household consumption. Those results compare ten South American countries whose consumer prices were surveyed in 2005 to compute PPPs and apply them to household consumption for the same year. Household consumption in the South American region accounts on average for two-thirds of GDP. In 2005, Argentina, Chile and Uruguay were relatively better off than the other South American countries. On the basis of the estimated 2005 figures, there are no major surprises in the ranking of the first three countries relatively to the situation ten years ago, as Argentina remains at the top in terms of per capita expenditures on household goods and services, at sixty percent above the regional average. Chile and Uruguay follow respectively with 48 and 43 per cent above average. Paraguay and Bolivia remain at the bottom of the table, the former with two-thirds of the regional average and the latter with fifty-two percent. The middle group is less spread out, with Venezuela at the top, slightly above average, and Colombia roughly twenty percent below. Brazil ranks sixth, almost ten percent below par.
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