The concepts described on these pages are words and expressions used in statistics with a specific, limited meaning. In everyday speech the word may have a different meaning. In connection with each definition you can find information about which sets of statistics use the concept.

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Purchasing power parity

Value relations between currencies, purchasing power parities, are calculated by means of price comparisons between countries. Purchasing power parity is the exchange rate calculated by which the price of the commodity basket of two countries is exactly the same converted into the common currency. Purchasing power parity is usually not the same as the actual exchange rate. Purchasing power parity is used to measure the value of the national economy's money on the basis of how much goods and services can be bought with its currency. This provides a more accurate conception of the output of the national economy per capita than by only converting the value of gross domestic product or gross national income (usually) into U.S. dollars or euros.

Validity of the definition

  • Valid until (31 December 2078)

Source organisation

  • Tilastokeskus