How does the converter help me?
This converter allows you to convert amounts from
numeraire US Dollars to the designated National
Currency. Following is an example illustrating the
difference between PPP-based and exchange rate-based
Let us consider a basket of goods and services that
costs 1 numeraire US Dollars in country X. When
converted to Lebanese Pounds using the exchange rate,
the result is 1 500 LBP. However, the result is 847.52
LBP when the conversion is done through the PPP
converter at GDP level.
Therefore, we realize that in reality we need
847.52/1500= 0.57 numeraire USD instead of 1 numeraire USD to buy the same basket of goods and
Since the conversions through this tool are based on
PPPs, the results will thus reflect the real
power of the currencies in purchasing a basket of goods
What does the aggregate level mean?
Talking about baskets of goods and services, the PPP has
been estimated at different levels of aggregates.
For example, the aggregate level of “Food and
nonalcoholic beverages” would represent a basket
constituting food products and nonalcoholic beverages
purchased for consumption at home, and hence PPP
estimated at this aggregate level might interest foreign
students planning on receiving their education at the
Tourists on the other hand would find the aggregate
“Restaurants and Hotels” to be more interesting, since
it includes accommodations provided by hotels and
similar establishments, as well as food products and
beverages sold for immediate consumptions away from
Economic researchers looking to have an overall
estimation of real currency power would be interested in
the expenditure-based GDP level.
A detailed explanation of all the aggregate levels
offered by the converter can be found in the “Aggregate
level definition” below.
that conversions are based on the price levels and
expenditure patterns of economies with reference year
2005. The 2011 ICP round will provide updated estimates
for currency conversions based on 2011 as a reference
AGGREGATE LEVEL DEFINITIONS
GDP (Gross Domestic Product),
expenditure-based, is total final expenditure at
purchaser’s prices, including the f.o.b. value of
exports of goods and services, less the f.o.b. value of
imports of goods and services. Figures are provided by
national authorities participating in the ICP and may
differ from international organization’s figures.
Actual individual consumption
is measured by the total value of household final
consumption expenditure, nonprofit institutions (such as
NGOs and charities) serving households’ final
consumption expenditure, and government expenditure on
individual consumption of goods and services (such as
education or health).
Food and nonalcoholic beverages
include food products and nonalcoholic beverages
purchased for consumption at home; excludes food
products and beverages sold for immediate consumption
away from the home by hotels, restaurants, cafés, bars,
kiosks, street vendors, automatic vending machines, and
so forth; cooked dishes prepared by restaurants for
consumption off their premises; cooked dishes prepared
by catering contractors, whether collected by the
customer or delivered to the customer’s home; and
products sold specifically as pet foods.
Alcoholic beverages and tobacco
include alcoholic beverages purchased for consumption at
home; include low or nonalcoholic beverages that are
generally alcoholic such as nonalcoholic beer; exclude
alcoholic beverages sold for immediate consumption away
from the home by hotels, restaurants, cafés, bars,
kiosks, street vendors, automatic vending machines, and
so forth. It also includes all purchases of tobacco by
households, including purchases of tobacco in cafés,
bars, restaurants, service stations, and so forth.
Clothing and footwear
includes expenditures on clothing materials; garments
for men, women, and children; other articles of clothing
and clothing accessories; cleaning, repair, and hire of
clothing; all footwear for men, women, and children; and
repair and hire of footwear.
Housing, water, electricity, gas and other fuels
includes expenditures on actual and imputed rentals for
housing; maintenance and repair of the dwellings; water
supply and services related to the dwellings; and
electricity, gas and other fuels.
Furnishings, household equipment, and maintenance
includes expenditures on furniture and furnishings;
carpets and other floor coverings; household textiles;
household appliances; glassware, tableware, and
household utensils; tools and equipment for house and
garden; and goods and services for routine household
includes expenditures by households on medical products,
appliances and equipment, outpatient services, and
hospital services. It also includes expenditures by
government on health benefits and reimbursements and on
production of health services.
includes expenditures on purchase of vehicles, operation
of personal transport equipment, and transport services.
includes expenditure on postal services and on telephone
and telefax equipment and services.
Recreation and culture
includes expenditures on audiovisual, photographic, and
information-processing equipment; other major durables
for recreation and culture; other recreational items and
equipment; gardens and pets; recreational and cultural
services; newspapers, books, and stationery; and package
includes expenditures on preprimary, primary, secondary,
postsecondary, and tertiary education. It also includes
expenditures by government on education benefits and
reimbursement and on production of education services.
Restaurants and hotels
includes food products and beverages sold for immediate
consumption away from home by hotels, restaurants,
cafés, bars, kiosks, street vendors, automatic vending
machines, and so forth; cooked dishes prepared by
restaurants for consumption off their premises; cooked
dishes prepared by catering contractors, whether
collected by the customer or delivered to the customer’s
home. It also includes expenditures on accommodation
services provided by the hotels and similar
Collective consumption expenditure by government
consists of expenditures incurred by general and local
governments for collective consumption services such as
defense, justice, general administration, and the
protection of the environment.
Gross capital formation
is measured by the total value of a producer’s
acquisitions, less disposals, of fixed assets during the
accounting period, plus certain additions to the value
of nonproduced assets (such as subsoil assets or major
improvements in the quantity, quality, or productivity
of land) realized by the productive activity of