Measuring the Real Size of the World Economy

Measuring the Real Size of the World Economy: The Framework,
Methodology, and Results of the International Comparison
Program—ICP is the most comprehensive accounting ever
presented by the International Comparison Program (ICP) of
the theory and methods underlying the estimation of
purchasing power parities (PPPs). PPPs reveal the relative
sizes of economies by converting their gross domestic
products and related measurements into a common currency,
thereby enabling comparisons based on economic and
statistical theory.

By disclosing the theory, concepts, and methods underlying
the estimates, this book increases the transparency of the ICP
process. Greater transparency allows researchers, users of
PPPs, and those involved in implementation of the program
to better understand the strengths, limitations, and
assumptions underlying its results. is book also provides a
forward-looking view of methodological developments with
an eye toward improving the quality of future comparisons.

The ICP is now the largest and most complex statistical
program in the world. In 2005 it included 100 countries and
economies, working in parallel with the 46 countries in the
Eurostat-Organisation for Economic Co-operation and
Development (OECD) PPP program.

Measuring the Real Size of the World Economy was prepared by
the ICP Global Office in the World Bank, with contributions
from the leading international experts in the fields of
economics and statistics on international comparisons.