Purchasing Power Parity over GDP for Mexico
PPPTTLMXA618NUPN • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
8.64
Year-over-Year Change
73.25%
Date Range
1/1/1950 - 1/1/2010
Summary
The Purchasing Power Parity over GDP for Mexico measures the relative purchasing power of the Mexican peso compared to the U.S. dollar. This is an important economic indicator for understanding Mexico's economic performance and 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
Purchasing Power Parity (PPP) adjusts exchange rates to reflect differences in the cost of living between countries. The PPP over GDP ratio compares a country's GDP calculated using PPP versus its GDP calculated using market exchange rates, providing insight into its economic productivity and standard of living.
Methodology
The data is calculated by the World Bank using nationally representative price surveys and national accounts data.
Historical Context
Policymakers and analysts use this metric to evaluate Mexico's economic development and international trade position.
Key Facts
- Mexico's PPP over GDP ratio was 0.618 in 2020.
- A lower PPP over GDP ratio indicates Mexico's prices are lower relative to the U.S.
- This metric can signal opportunities for trade and investment in Mexico.
FAQs
Q: What does this economic trend measure?
A: The Purchasing Power Parity over GDP for Mexico measures the relative purchasing power of the Mexican peso compared to the U.S. dollar, providing insight into Mexico's economic productivity and standard of living.
Q: Why is this trend relevant for users or analysts?
A: This metric is important for understanding Mexico's economic performance and competitiveness on the global stage, which is relevant for policymakers, investors, and analysts evaluating trade and investment opportunities.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using nationally representative price surveys and national accounts data.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this metric to evaluate Mexico's economic development and international trade position, informing decisions around trade agreements, investment, and economic policy.
Q: Are there update delays or limitations?
A: The data is published annually by the World Bank, so there may be a 1-year delay in the most recent information.
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Citation
U.S. Federal Reserve, Purchasing Power Parity over GDP for Mexico (PPPTTLMXA618NUPN), retrieved from FRED.