Gross Domestic Product (International Comparisons)

asked the Chancellor of the Exchequer if he will list for 1977 or the latest date for which information is available the gross domestic product at factor cost per head of total population in each member State of the EEC, the United States of America, Canada and Japan.

, pursuant to his reply [Official Report, 18 January 1979; Vol. 960, c. 866], gave the following answer:The latest available information is given in the table below.Comparative estimates of gross domestic product published by international organisations are given in terms of market prices; and they are converted to a common unit of measurement on the basis of official or market rates of exchange. The use of these exchange rates in this context can be misleading since they do not necessarily reflect the relative purchasing power of national currencies in terms of the goods and services available in the countries being compared. It is generally recognised that a more realistic assessment of relative levels of GDP can be made through the use of purchasing power parities. However, there are now two sets of purchasing power parities based on studies by the United Nations and by the statistical office of the European Communities; and they give slightly different results. Alternative

GROSS DOMESTIC PRODUCT AT MARKET PRICES IN 1976 PER HEAD OF TOTAL POPULATION
							Based on official or market rates of exchange^*		Based on purchasing power parities (UK = 100)
							US Dollars	UK=100	UN†	SOFC‡
Belgium	…	…	…	…	…	…	6,713	172	NA	118
Denmark	…	…	…	…	…	…	7,594	194	NA	129
France	…	…	…	…	…	…	6,552	167	134	122
Germany, Federal Republic				…	…	…	7,247	185	134	127
Irish Republic		…	…	…	…	…	2,509	64	NA	66
Italy	…	…	…	…	…	…	3,041	78	80	79
Luxembourg		…	…	…	…	…	6,276	160	NA	120
Netherlands		…	…	…	…	…	6,501	166	119	116
United Kingdom		…	…	…	…	…	3,914	100	100	100
United States		…	…	…	…	…	7,912	202	168	NA
Canada	…	…	…	…	…	…	8,409	215	NA	NA
Japan	…	…	…	…	…	…	4,922	126	106	NA
NA = Not available.
^*Source: National accounts of OECD countries Volume 1.
† Extrapolated from benchmark estimates for 1970 and 1973 produced by the UN international comparisons project.
‡ Source: SOEC—extrapolated from benchmark estimates for 1975

asked the Chancellor of the Exchequer if he will list for the top 25 economies, including, where relevant, economies in the Communist bloc, the gross national product per capita at factor cost and expressed in terms of United States dollars, for 1951, 1964, 1970, 1973, 1976 and 1977.

, pursuant to his reply [Official Report, 18 January 1979; Vol. 960, c. 867], gave the following information:Estimates at factor cost are not readily available from international sources. The table below contains estimates of gross national product at market prices per head of the population for the top 25 economies in respect of the years 1974–76. The figures have been calculated by the World Bank. Comparable figures for 1977 and for years before 1974 are not available. The top 25 economies have been defined through the figures published by the World Bank and include only those countries with a population of 1 million or more. The figures are based on average relative prices and exchange rates during 1974–76 and the year-to-year movements reflect changes in real output in each country and in the rate of inflation in the United States.There are special difficulties in producing comparable estimates for centrally planned economies, where national

native estimates are given in the table for those countries covered by both studies.

accounts are compiled on the basis of the system of material product balances. Estimate of GNP for these countries on a comparable basis have been made by the World Bank, but more than usual caution in the use of figures is advised.

Alternative estimates, but relating only to the member countries of OECD, covering the period from 1961 to 1976 are given on page 133 of "National Accounts of OECD Countries 1976, Volume 1, Main Aggregates", published by OECD.

It is recognised that the use of official or market-exchange rates to convert GNP or GDP estimates to a common unit of measurement can give very misleading results because the rates do not necessarily reflect the relative purchasing power of national currencies in terms of the goods and services available in the countries being compared. A more realistic assessment is given by the use of purchasing power parities to convert to a common unit. Estimates of relative GDP at market prices have been included in the table, derived on the basis of purchasing power parities extrapolated from the benchmark estimate for 1970 and 1973 provided by the United Nations International Comparisons Project.

These estimates are available only for a limited number of countries at present. Alternative estimates for EEC member countries in 1976, based on purchasing power parities developed by the statistical office of the European Communities, are

			Gross national product at market prices per capita ^*						Gross domestic product at market prices per capita Based on Purchasing power Parities†
			1974	1975	1976 (preliminary)	1974	1975	1976 (preliminary)	1974	1975	1976
			US $ per head			USA = 100			USA = 100
Kuwait	…	…	11,270	15,190	15,480	169	213	196
Switzerland		…	8,280	8,410	8,880	124	118	113
Sweden	…	…	7,440	8,150	8,670	111	114	110
United States		…	6,680	7,120	7,890	100	100	100	100	100	100
Canada	…	…	6,390	6,930	7,510	96	97	95
Denmark	…	…	6,290	6,810	7,450	94	96	94
Norway	…	…	6,040	6,760	7,420	90	95	94
Germany, Federal Republic	…	…	6,280	6,670	7,380	94	94	94	80	80	80
Belgium	…	…	5,840	6,270	6,780	87	88	86	79	78	NA
France	…	…	5,520	5,950	6,550	83	84	83	78	80	80
Libya	…	…	4,360	5,530	6,310	65	78	80
Netherlands		…	5,420	5,750	6,200	81	81	79	73	72	71
Australia	…	…	5,360	5,700	6,100	80	80	77
Finland	…	…	4,970	5,420	5,620	74	76	71
Austria	…	…	4,530	4,870	5,330	68	68	68
Japan	…	…	4,040	4,450	4,910	60	63	62	63	64	64
Saudi Arabia		…	3,090	4,010	4,480	46	56	57
New Zealand		…	4,080	4,280	4,250	61	60	54
German Democratic Republic‡		…	3,450	3,910	4,220	52	55	53
United Kingdom		…	3,530	3,780	4,020	53	53	51	60	61	60
Israel	…	…	3,600	3,790	3,920	54	53	50
Czechoslovakia‡		…	3,240	3,610	3,840	49	51	49
Italy	…	…	2,690	2,810	3,050	40	39	39	49	49	48
Spain	…	…	2,510	2,750	2,920	38	39	37
Poland‡	…	…	2,270	2,600	2,860	34	37	36
^* Source: World Bank Atlas.
† Extrapolated from the benchmark estimates for 1970 and 1973 produced by the United Nations International Comparisons Project.
‡ Tentative estimates produced by the World Bank.

Volume 961: debated on Wednesday 24 January 1979