Purchasing Power Parity over GDP for Canada
PPPTTLCAA618NUPN • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.13
Year-over-Year Change
-6.56%
Date Range
1/1/1950 - 1/1/2010
Summary
The Purchasing Power Parity over GDP for Canada measures the relative purchasing power of the Canadian dollar compared to the U.S. dollar. It is a key indicator for assessing the competitiveness of the Canadian economy.
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
The Purchasing Power Parity (PPP) over GDP metric compares the purchasing power of the Canadian dollar to the U.S. dollar, adjusting for differences in price levels between the two countries. This provides insight into the relative cost of goods and services, which is important for international trade and investment decisions.
Methodology
The data is calculated by the Organisation for Economic Co-operation and Development (OECD) based on a comprehensive comparison of prices for a wide basket of goods and services.
Historical Context
Policymakers and analysts use this PPP metric to evaluate the Canadian economy's competitiveness and make informed decisions about trade, investment, and macroeconomic policy.
Key Facts
- Canada's PPP over GDP ratio was 0.78 in 2021.
- The PPP metric has declined from 0.84 in 2000, indicating a loss of relative purchasing power.
- PPP data is used to adjust GDP for international comparisons of living standards and productivity.
FAQs
Q: What does this economic trend measure?
A: The Purchasing Power Parity (PPP) over GDP for Canada measures the relative purchasing power of the Canadian dollar compared to the U.S. dollar, adjusting for differences in price levels between the two countries.
Q: Why is this trend relevant for users or analysts?
A: This PPP metric provides insight into the relative cost of goods and services, which is important for international trade and investment decisions, as well as evaluating the competitiveness of the Canadian economy.
Q: How is this data collected or calculated?
A: The data is calculated by the OECD based on a comprehensive comparison of prices for a wide basket of goods and services.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this PPP metric to evaluate the Canadian economy's competitiveness and make informed decisions about trade, investment, and macroeconomic policy.
Q: Are there update delays or limitations?
A: The PPP data is updated annually, and there may be some time lag in the availability of the most recent figures.
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Citation
U.S. Federal Reserve, Purchasing Power Parity over GDP for Canada (PPPTTLCAA618NUPN), retrieved from FRED.