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2. 2 Introduction Purpose of the ICP UN System of National Accounts calls for comparisons of GDP across countries be using PPPs The Approach Collection of prices for well-defined basket of goods & services Review & harmonisation of National Accounts Use of state-of-the-art statistical methods

3. 3 Survey Frame # ItemsCoverageTime Household Consumption 1 016 Urban/Rural12 months Health 13 Mainly urban 2 months Education 5 Mainly urban2005 Government Consumption 18 Country2005 Machinery and equipment 185 Mainly urban2006 Construction 34 Mainly urban2006 Total 1 271

4. 4 CPD Regression : at basic heading level Purchasing Power Parities - The Mathematical Methods IKLE Iterative System of Equations : for PPP aggregation

5. 5 Start with the full GDP divide into subgroups 155 Basic Headings Start with the full GDP divide into subgroups 155 Basic Headings E.g. Food 29 Basic Headings E.g. Food 29 Basic Headings Define products matching “like with like” collect prices Define products matching “like with like” collect prices about 10 per Basic Heading about 10 per Basic Heading 1,000+ products 1,000+ products Calculate Basic Heading parities Regional PPPs at Basic Heading level Regional PPPs at Basic Heading level Combine Basic Heading PPPs to subgroups, then to GDP Combine Basic Heading PPPs to subgroups, then to GDP First Regional, then Global GDP PPPs Purchasing Power Parities - The Steps

6. 6 Table 03 Price Level Indices – Indices de niveau des prix PLI = PPPs / Exch Rates

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8. 8 Conclusion Country benefits 1.Cross country Comparison of GDP & related aggregates 2.USD1/Day Poverty Line, HDI at provincial district levels (Poverty PPPs) 3.Poverty Analysis 4.Harmonize of economic policies (regional & sub- regional integration) 5.Foster intra African trade 6.Comparison of Price levels; wage differentials, cost production (investment, employment policy decisions) International level establishing international poverty threshold (World Bank) constructing Human Development Index (UNDP) comparing health expenditure per capita (WHO) assessing per capita expenditures in education (UNESCO) monitoring the welfare of children (UNICEF) comparing the relative sizes of economies (AfDB, IMF) estimating weighted averages of regional growth rates (AfDB, IMF)

9. 9 Thank You Merci