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IBGE carries out Survey of Machinery and Equipment for International Comparison Program
As of August 1st, the IBGE is collecting data for the Survey of Machinery and Equipment of the current round of the International Comparison Program (ICP). The survey aims at calculating the Purchasing Power Parity (PPP). PPPs are a metrics used to provide comparable measurements, among countries, of prices and volume of the Gross Domestic Product (GDP) and they are estimated through the collection of prices of a common basket of goods and services, as well as through information on spending of the different expense aggregates of the GDP.
The statistics of the program have multiple applications and they are essential to compare the GDP of countries in real terms. Unlike currency rates, PPPs have the property of eliminating, or at least amortizing, the differences of price levels. Through them, it is possible to express the wealth of countries in a single currency and at a same price level. Therefore, the result of the program is used for surveys and analyses by a wide assortment of users, like international organizations, governmental agencies, universities and researchers of private institutions.
The ICP is a global statistical initiative coordinated by the World Bank and by the United Nations Statistics Division. The Survey of Machinery and Equipment is one of the special surveys of the program. Its implementation requires the collection of prices practiced, for either trade or industrial purpose, of a directory of machinery and equipment with strict specifications in order to guarantee the comparability of the results reached by the countries participating in the program.
That data collection will be carried out through telephone and email with manufacturers and suppliers of machinery and equipment. Besides the technical specifications of the products, the major variables requested are the basic unit price, delivery cost, possible installation costs and non-deductible indirect taxes.
Directorate of Surveys
August 23, 2022