National Gross Domestic Product (GDP) by Income and by Expenditure Accounts

Purchasing power parity of economy, ratio

Purchasing power parity refers to a ratio of the price of a good or service in one country in the national currency relative to the price of the same item in another country expressed in its currency. In other words, it represents a currency conversion rate that would equalize the purchasing power of the two currencies for the commodity in question. For example, a PPP of 0.90 signifies that 90 cents U.S. purchases the same quantity of the specified good or service as $1 Canadian; thus the U.S. dollar has greater purchasing power than its Canadian counterpart.

Economy refers to the entire set of resident institutional units. It is divided into sectors that consists of groups of resident institutional units. An institutional unit is resident in a country when it has a centre of economic interest in the economic territory of that country. It is said to have a centre of economic interest when there exists some location - dwelling, place of production or other premises - within the economic territory on, or from, which it engages, and intends to continue to engage, in economic activities and transactions on a significant scale either indefinitely or over a finite period of time.

The data for this variable are reported using the following measurements:

• Decimal number
  Data tables

  • Purchasing power parities between Canada and the United States based on the System of National Accounts Classification (SNA) in terms of expenditures Table: 380-0057
  • Purchasing power parities between Canada and the United States, International Comparison Project (ICP) Classification, consumption-based Table: 380-0058