Details:

From Wikipedia, the free encyclopedia.Purchasing power parity(PPP) is a measurement of prices in different countries that uses the prices of specific goods to compare the absolute purchasing power of the countries' currencies. Our reference material defines it as the calculation of GNI using a common set of international prices for all goods and services to provide more accurate comparisons of living standards. Purchasing power parityis an economic indicator used tocalculatethe exchange rate between different countries for the purpose of exchanging goods and services of the same amount. Where, S = Exchange Rate. P1 = Cost of goods in Currency 1. ThePurchasing Powerof thePeso(PPP) is ameasureof the real value of thepesoin a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.

Purchasing power parity(PPP) allows for economists to compare economic productivity and standards of living between countries. Some countries adjust their gross domestic product (GDP) figures to reflectPPP. GDP PPP(purchasing power parity) isgross domestic productconverted to international dollars using purchasing power parity rates. PPPexchange rates are relatively stable over time. For this reason,PPPis generally regarded as abetter measureof overall well-being. Drawbacks ofPPP. The biggest one is thatPPPis harder tomeasurethan market-based rates.

The Gross Domestic Product per capita in Philippines was last recorded at 8908.20 US dollars in 2019, when adjusted by purchasing power parity (PPP). The GDP per Capita, in Philippines, when adjusted by Purchasing Power Parity is equivalent to 50 percent of the world's average.source:World Bank