This manual sets out the full methodology of producing PPPs within the ‘Eurostat-OECD PPP Programme’ – a programme in which the Eurostat and OECD have been working together in producing and publishing Purchasing Power Parities (PPPs) for their respective member countries. PPPs are essential tools for the comparison of price and volume levels of GDP and other indicators. This manual describes the organisation of the work and the data collection, validation and calculation methods as applied for the reference year 2022. It updates the previous edition published in 2012.
The aim of the manual is: (i) to provide methodological guidelines on PPPs to those directly engaged in the programme, i.e. to practitioners in Eurostat, the OECD and National Statistical Institutes (NSIs) of participating countries; (ii), to advise PPPs users – policymakers, journalists, academics, researchers – on the use and interpretation of programme comparison results; and (iii) to provide a single point of reference on the Eurostat-OECD PPP Programme, accessible to teachers, students and the general public interested in PPPs and related statistics.
Paraguay has faced multiple shocks in the past five years as the COVID-19 pandemic was bookended by severe droughts that affected two key sectors, electricity production and agricultural production. The economy has demonstrated remarkable resilience during this period, supported by policy measures commensurate with the magnitude of the challenge, like the USD 2 billion fiscal response to the pandemic. These shocks have also exposed key underlying vulnerabilities in the country’s economy and development model, including reliance on agricultural exports, informality, limited revenue-raising capacity, and exposure to the consequences of climate change. The response and stimulus recognised these issues and found new ways to address or circumvent them, albeit in many cases not efficiently or permanently. This report draws lessons from policy measures implemented during the pandemic and recovery phase and applies them to current strategic challenges. In doing so, it highlights policy priorities to make Paraguay’s development path more inclusive, stronger and more resilient.
GDP growth in Korea has recovered, supported by strong exports. Employment remains stable at a high level, while unemployment is low. Interest rates have likely peaked and housing prices have stabilised, all of which should support consumption going forward. Household debt remains high, and construction-related project finance has become a financial stability concern. Reforms to ensure fair competition in the domestic market would increase productivity in the SME sector. Reducing greenhouse gas emissions in line with the 2030 target requires tightening the emissions trading scheme and reforming energy markets to incentivise clean electricity supply and energy savings. The Korean fertility rate has fallen to the lowest in the world, which will put labour supply and public finances under pressure. A large career cost for women who become mothers holds back female employment and fertility, and underpins the widest gender pay gap in the OECD. Improving the work-life balance for both genders, closing remaining gaps in family policies, addressing high housing and education costs, and tackling labour market dualism are key to reverse the trend. Such reforms, combined with increasing the legal retirement age, reducing the high significance of seniority in determining wages, and a more welcoming regime for work immigration, would also boost labour supply and tax revenue.
SPECIAL FEATURES: PRODUCTIVITY, CLIMATE POLICY, BOOSTING FERTILITY AND RESPONDING TO AGEING
La France a été confrontée successivement à deux chocs de grande ampleur, avec la pandémie de COVID-19 et la hausse de l’inflation. Les mesures gouvernementales d’urgence ont été décisives pour préserver le tissu productif, l’emploi et le pouvoir d’achat mais ont eu un coût élevé pour les finances publiques. Des efforts de réduction des dépenses seront impératifs pour abaisser la dette publique. Pour stimuler les gains de productivité, il faut diffuser plus largement les technologies numériques, réduire les obstacles réglementaires et renforcer l’innovation. La tarification du carbone pourrait être rendue plus efficace en éliminant progressivement les subventions et exemptions fiscales dont bénéficient certains secteurs.
Les résultats scolaires sont comparables à ceux obtenus dans d’autres pays de l’OCDE, mais le lien entre le milieu socio-économique et les résultats des élèves est particulièrement fort. Une répartition plus large des aides publiques en faveur des établissements scolaires défavorisés permettrait d’éviter les effets de seuil et de mieux répondre aux besoins des élèves. Rééquilibrer la répartition des dépenses d’éducation en faveur des établissements primaires permettrait d’apporter un soutien plus important aux enfants dès leurs premières années de scolarité. L’utilisation de pratiques pédagogiques modernes telles que les méthodes d’activation cognitive, qui sont associées à de meilleurs résultats scolaires, pourrait être renforcée.
CHAPITRE THÉMATIQUE : AMÉLIORER LES RÉSULTATS DANS LE DOMAINE DE L’ÉDUCATION
France has faced two significant, successive shocks: the COVID-19 pandemic and the increase in inflation. Emergency government measures were decisive in protecting business, jobs and purchasing power, but at a high fiscal cost. Efforts to reduce public spending will be key to lower government debt. Lifting productivity growth hinges on a wider diffusion of digital technologies, reduced regulatory barriers and stronger innovation. The effectiveness of carbon pricing could be strengthened by gradually removing subsidies and tax exemptions that certain sectors benefit from.
Students perform at a similar level to OECD peers but the link between socio-economic background and educational outcomes is particularly strong. Spreading the allocation of public support to disadvantaged students more widely across schools would help to avoid threshold effects and to better respond to students’ needs. Rebalancing the distribution of education spending in favour of primary schools could provide greater support to children in the early years of their schooling. The use of modern teaching approaches, including cognitive activation practices, that are associated with better student achievement, could be reinforced.
SPECIAL FEATURE: IMPROVING EDUCATIONAL OUTCOMES
Austria’s economy performed well over the past two decades. The country’s GDP per capita ranks among the highest in the OECD. Income inequalities are relatively low thanks to high redistribution through public transfers, which contributes to a relative poverty rate well below many other OECD countries. The domestic production of energy has a low carbon content largely due to significant hydropower resources. The economy is set to recover from a recession in 2023, but it will do so only slowly and remains fragile. The inflation shock in the wake of Russia’s war of aggression against Ukraine is taking time to subside. Public debt has increased substantially, while the public deficit remains close to 3%. Greater capacity of the economy to adapt to future shocks and address structural challenges is needed. Sound public finances and low government debt provide fiscal space and strengthen a country’s resilience against short- and long-term shocks. Pension system reforms and efficiency measures in health care can help to mitigate long-term fiscal pressures. Public revenues need to be more friendly to sustainable and inclusive growth by shifting away from high levies on labour towards less growth-distortive taxes. Easing regulation, including strict entry requirements for certain professional services will help efficient allocation of resources towards promising activities and firms. Reducing the gap in skills for disadvantaged students and improving the integration of immigrants will be essential to provide equal access to the labour market. Achieving net zero emissions by 2040 will require a clear and comprehensive strategy including higher and more harmonised carbon prices. High exposure to future climate risks, in particular floods, needs to be addressed, and insurance coverage against natural disasters should be expanded.
SPECIAL FEATURE: ACHIEVING A SUCCESSFUL GREEN TRANSFORMATION IN AUSTRIA
Les politiques efficaces en matière de protection sociale sont celles qui tiennent compte des liens d’interdépendance entre les retombées économiques, sociales et environnementales. Ce document, destiné à éclairer les discussions de la filière Finance au cours de la Présidence japonaise du G7 en 2023, décrit une série d’initiatives menées à l’échelle nationale et internationale pour améliorer la mesure du bien-être multidimensionnel « au-delà du PIB ». En particulier, le Système de comptabilité nationale (SCN) de 2025 rendra plus visibles l’économie numérique et les services numériques gratuits, ainsi que les activités non rémunérées des ménages et l’épuisement du capital naturel. Par ailleurs, plus de deux tiers des pays de l’OCDE ont mis au point, à l’échelle nationale, des cadres, des plans de développement ou des enquêtes axés sur le bien-être multidimensionnel, couvrant un large éventail de résultats et d’inégalités au niveau économique, social et environnemental qui ont une incidence sur le bien-être des populations et sa pérennité. Certaines économies du G7 et de l’OCDE ont commencé à utiliser ces éléments pour éclairer l’élaboration du budget, renforcer les outils d’évaluation de l’action publique (y compris l’analyse coûts-avantages) et étayer les cadres de gestion des performances de l’administration et les stratégies de croissance inclusive.
The Slovenian economy proved resilient following the energy crisis and devastating floods. Growth is projected to pick up gradually. The labour market remains tight, with widespread labour shortages leading to strong wage growth. Inflation has slowed but remains elevated in services. Fiscal consolidation is needed to rebuild fiscal buffers and address emerging pressures from ageing-related cost, notably on pensions. Productivity growth would benefit from lifting remaining barriers in retail trade and restrictions on professional services. Female labour market participation is high, but the gender wage gap could be reduced further through adjustments in the tax and benefit system. Greater harmonisation of carbon prices, notably the removal of reduced tax rates for fossil fuels, is needed to reach emissions targets. High homeownership rates and a limited rental market, combined with insufficient residential construction, constrain housing options for many, especially the young and vulnerable. Enhancing housing supply can be achieved by streamlining spatial planning and permitting systems, reforming housing taxation, improving rental regulations, expanding access to mortgage finance, and promoting the development of social and affordable housing.
SPECIAL FEATURE: ADDRESSING HOUSING MARKET CHALLENGES
تعد مصر اقتصادًا ناشئًا سريع النمو وتمثل عبئًا ديموغرافيًا ثقيلًا على القارة الأفريقية. فيشكّلُ كلٌ من النمو السكاني المتزايد، وتغير استخدام الأراضي، والتلوث، وتغير المناخ، ضغوطا متزايدة على البيئة الطبيعية، بما في ذلك تنوعها البيولوجي الغني. ورغم أن مصر قد حقّقت فصلًا نسبيًا لانبعاثات غازات الدفيئة عن النمو الاقتصادي، الا أنها لا تزال تحتاج إلى دمج العمل المناخي على نحوٍ أكبر، في مختلف القطاعات، ورفع سقف طموحاها تدريجيًّا. وباعتبارها واحدة من أكثر بلدان العالم معاناة من نقص المياه، فمن المفترض أن تساهم زيادة استخدام الأدوات الاقتصادية في معالجة ندرة المياه وتحسين نوعيتها. وقد التزمت الحكومة، كهدف من أهداف رؤية مصر 2030 بتحويل التحديات البيئية إلى فرص. فقد اتخذت خطوات للتحرك نحو إدارة أكثر استدامة للنفايات ومعالجة تلوث الهواء، الذي لا يزال مصدر قلق صحي. ولدى مصر إمكانات كبيرة لتسريع تحولها إلى الطاقة النظيفة. وفي حين تحسنت المعلومات والبيانات البيئية عموما، ينبغي تعزيز مشاركة الجمهور في صنع القرارات البيئية بشكلٍ أكبر.
إنّها المراجعة الأولى لسياسة النمو الأخضر في مصر. حيث يبحث التقرير في التقدم المحرز نحو تحقيق التنمية المستدامة والنمو الأخضر على مدى العقد الماضي. وتهدف التوصيات الـ 40 إلى مساعدة مصر في تحسين أدائها البيئي، مع التركيز على بناء مدن مراعية للمناخ ومرنة وشاملة.
Egypt is a rapidly growing emerging economy and a demographic heavyweight on the African continent. High population growth, land-use change, pollution and climate change are increasingly putting pressure on the natural environment, including on its rich biodiversity. Egypt has achieved relative decoupling of greenhouse gas emissions from economic growth, though it needs to further mainstream climate action across sectors and progressively raise ambition. As one of the world’s most water-stressed countries, greater use of economic instruments would help address scarcity and improve water quality. As part of Egypt’s Vision 2030, the government is committed to turning environmental challenges into opportunities. It has taken steps to move towards more sustainable waste management and address air pollution, which remains a health concern. Egypt has significant potential to accelerate its clean energy transition. While environmental information and data have improved overall, public participation in environmental decision making needs to be further enhanced.
This is the first Green Growth Policy Review of Egypt. It examines progress towards sustainable development and green growth over the past decade. The 40 recommendations aim to help Egypt improve its environmental performance, giving a special focus to building climate-smart, resilient and inclusive cities.
This new web format for Environment at a Glance Indicators provides real-time interactive on-line access to the latest comparable OECD-country data on the environment from the OECD Core Set of Environmental Indicators – a tool to evaluate environmental performance in countries and to track the course towards sustainable development. The web version allows users to play with the data and graphics, download and share them, and consult and download thematic web-books. These indicators provide key messages on major environmental trends in areas such as climate change, biodiversity, water resources, air quality, circular economy and ocean resources.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making.
This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations.
The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making.
This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations.
The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making.
This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations.
The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making.
This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations.
The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making.
This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations.
The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making.
This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations.
The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.
This report presents the results of the 2022 OECD Green Public Procurement (GPP) Survey, to which 38 countries (OECD Member and accession candidate countries) responded. The aim of the survey was to better understand how public procurement, a significant economic lever, is being used to generate environmental benefits. The report is organized around four areas: green public procurement policy and strategic framework, public-private interactions on green public procurement, the monitoring and the evaluation of green public procurement, and building capacity and support for green public procurement. Developments in GPP since the survey was completed in 2022 are included in the country-specific factsheets annexed to the report.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making.
This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations.
The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.
The United States economy has continued to expand at a solid pace and price pressures have eased somewhat. However, a sustained fiscal deficit has contributed to raising public debt as a share of GDP to its highest level since World War II, with a further substantial increase in prospect over coming decades as the population ages. To put the public finances on a more sustainable path, a multi-year fiscal adjustment should be enacted that achieves savings on pensions and healthcare and raises taxation, including on capital incomes. A more medium-term oriented and less complicated federal budgeting process would support this. At the same time, economic growth would benefit from productivity enhancing reforms that promote competition, including through maintaining international trade openness and reinforcing relevant skills in the workforce. Efforts to reduce greenhouse gas emissions have accelerated, but further policy measures will be needed to achieve emission reduction targets. Policy options include a package of broad-based carbon pricing, taxes and sectoral policies. As the climate transition further progresses, additional measures will be needed to support displaced workers from fossil fuel industries and for climate adaptation.
SPECIAL FEATURE: MANAGING FISCAL PRESSURES IN THE UNITED STATES