IndicatorName: PISA: 15-year-olds by reading proficiency level (%). Below Level 1B

Longdefinition: Percentage of 15-year-old students scoring students below the lowest proficiency level (1B) on the PISA reading scale. Students with scores below Level 1b (less or equal to 262 points) usually do not succeed at the most basic reading tasks that PISA measures. This does not necessarily mean that they are illiterate, but that there is insufficient information on which to base a description of their reading proficiency. 2000, 2003, and 2006 PISA assessments used a different reading proficiency scale (Below Level 1 to Level 5) than later assessments, which use a reading scale from Below Level 1B to Level 6. Because an equivalent proficiency level to "Below Level 1B" and Level 1B were not calculated for the 2000, 2003, and 2006 PISA Reports, the data are not currently available for those years. Use caution in comparing proficiency scores across years. For more information on comparability of results, consult the PISA website: http://www.oecd.org/pisa/.

Source: OECD Programme for International Student Assessment (PISA) (http://www.oecd.org/pisa/)

Topic: Education: Outcomes


IndicatorName: PISA: 15-year-olds by science proficiency level (%). Below Level 1B

License_Type: CC BY-4.0

Longdefinition: Percentage of 15-year-old students scoring below the lowest proficiency level (less than or equal to 261) on the PISA science scale. No item in the PISA assessment can indicate what students who perform below Level 1b can do. Students below Level 1b may have acquired some elements of science knowledge and skills, but based on the tasks included in the PISA test, their ability can only be described in terms of what they cannot do – and they are unlikely to be able to solve, other than by guessing, any of the PISA tasks. Data reflect country performance in the stated year, but may not be comparable across years or countries. Consult the PISA website for more detailed information: http://www.oecd.org/pisa/

Topic: Learning Outcomes


Aggregationmethod: Unweighted average

Developmentrelevance:
The LPI measures on-the-ground trade logistics performance, helping national leaders, key policymakers, and private sector traders understand the challenges they and their trading partners face in reducing logistical barriers to international commerce.

A useful outcome measure of logistics performance is the time taken to complete trade transactions. The median import lead time for port and airport supply chains, as measured for the LPI, is more than 3.5 times longer in low performing countries than in high-performing countries. The difference is around three times for land supply chains. The association suggests that geographical hurdles, and perhaps internal transport markets, still pose substantial difficulties in many countries. Besides geography and speed en route, another factor in import lead times is the border process. Time can be reduced at all stages of this process, but especially in the clearance of goods on arrival. Countries with low logistics performance need to reform their border management so that they can reduce red tape, excessive and opaque procedural requirements, and physical inspections. Although the time to clear goods through customs is a fairly small fraction of total import time for all LPI quintiles, it rises sharply if goods are physically inspected. Core customs procedures are similar across quintiles. But low-performing countries have a far higher prevalence of physical inspection, even subjecting the same shipment to repeated inspections by multiple agencies.

Many low-income countries have long export lead times, reducing their export competitiveness and ability to participate in international trade.

IndicatorName: Lead time to export, median case (days)

Limitationsandexceptions:
The Logistics Performance Index is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance. Feedback from operators is supplemented with quantitative data on the performance of key components of the logistics chain in the country of work. Thus, the LPI consists of both qualitative and quantitative measures.

In addition, despite being the most comprehensive data source for country logistics and trade facilitation, the LPI has two important limitations. First, the experience of international freight forwarders might not represent the broader logistics environment in poor countries, which often rely on traditional operators. And the international and traditional operators might differ in their interactions with government agencies - and in their service levels. Second, for landlocked countries and small-island states, the LPI might reflect access problems outside the country assessed, such as transit difficulties. The low rating of a landlocked country might not adequately reflect its trade facilitation efforts, which depend on the workings of complex international transit systems. Landlocked countries cannot eliminate transit inefficiencies with domestic reforms.

Longdefinition: Lead time to export is the median time (the value for 50 percent of shipments) from shipment point to port of loading. Data are from the Logistics Performance Index survey. Respondents provided separate values for the best case (10 percent of shipments) and the median case (50 percent of shipments). The data are exponentiated averages of the logarithm of single value responses and of midpoint values of range responses for the median case.

Periodicity: Annual

Source: World Bank and Turku School of Economics, Logistic Performance Index Surveys. Data are available online at : http://www.worldbank.org/lpi. Summary results are published in Arvis and others' Connecting to Compete: Trade Logistics in the Global Economy, The Logistics Performance Index and Its Indicators report.

Statisticalconceptandmethodology:
Data on lead time to export are from the Logistics Performance Index (LPI) survey. Respondents provided separate values for the best case (10 percent of shipments) and the median case (50 percent of shipments) of shipments from the point of origin (the seller's factory, typically located either in the capital city or in the largest commercial center) to the port of loading or equivalent (port/airport), and excluding international shipping.

The Logistics Performance Index (LPI) uses a structured online survey of logistics professionals at multinational freight forwarders and at the main express carriers. The 2012 LPI data are based on the 2011 survey, which was administered to nearly 1,000 respondents at international logistics companies in 143 countries (domestic performance indicators). The international LPI covers 155 countries. The LPI assesses both large companies and small and medium enterprises. Most of the responses are from small and medium enterprises, with large companies (those with 250 employees or more) accounting for roughly 18 percent of responses. The respondents include groups of professionals who are directly involved in day-today operations, from company headquarters and from country offices such as senior executives, area or country managers, and department managers. Many of the respondents are at corporate or regional headquarters or at country branch offices. The rest are at local branch offices or independent firms. The majority of respondents are involved in providing most logistics services as their main line of work such as warehousing and distribution, customer-tailored logistics solutions, courier services, bulk or break bulk cargo transport, and less-than-full container, full-container, or full-trailer load transport.

For the lead time to export, respondents were asked for quantitative information on their countries' international supply chains by picking choices from a dropdown menu. When a response indicates a single value, the answer is coded as the logarithm of that value. When a response indicates a range, the answer is coded as the logarithm of the midpoint of that range. Country scores are produced by exponentiating the average of responses in logarithms across all respondents for a given country. This method is equivalent to taking a geometric average in levels. Scores for regions, income groups, and LPI quintiles are simple averages of the relevant country scores.

Topic: Private Sector & Trade: Trade facilitation


IndicatorName: Lead time to import, median case (days)

Longdefinition: Lead time to import is the median time (the value for 50 percent of shipments) from port of discharge to arrival at the consignee. Data are from the Logistics Performance Index survey. Respondents provided separate values for the best case (10 percent of shipments) and the median case (50 percent of shipments). The data are exponentiated averages of the logarithm of single value responses and of midpoint values of range responses for the median case.

Statisticalconceptandmethodology:
Data on lead time to import are from the Logistics Performance Index (LPI) survey. Respondents provided separate values for the best case (10 percent of shipments) and the median case (50 percent of shipments) of shipments from the port of discharge or equivalent to the buyer's warehouse.

The Logistics Performance Index (LPI) uses a structured online survey of logistics professionals at multinational freight forwarders and at the main express carriers. The 2012 LPI data are based on the 2011 survey, which was administered to nearly 1,000 respondents at international logistics companies in 143 countries (domestic performance indicators). The international LPI covers 155 countries. The LPI assesses both large companies and small and medium enterprises. Most of the responses are from small and medium enterprises, with large companies (those with 250 employees or more) accounting for roughly 18 percent of responses. The respondents include groups of professionals who are directly involved in day-today operations, from company headquarters and from country offices such as senior executives, area or country managers, and department managers. Many of the respondents are at corporate or regional headquarters or at country branch offices. The rest are at local branch offices or independent firms. The majority of respondents are involved in providing most logistics services as their main line of work such as warehousing and distribution, customer-tailored logistics solutions, courier services, bulk or break bulk cargo transport, and less-than-full container, full-container, or full-trailer load transport.

For the lead time to import, respondents were asked for quantitative information on their countries' international supply chains by picking choices from a dropdown menu. When a response indicates a single value, the answer is coded as the logarithm of that value. When a response indicates a range, the answer is coded as the logarithm of the midpoint of that range. Country scores are produced by exponentiating the average of responses in logarithms across all respondents for a given country. This method is equivalent to taking a geometric average in levels. Scores for regions, income groups, and LPI quintiles are simple averages of the relevant country scores.


Developmentrelevance: The LPI measures on-the-ground trade logistics performance, helping national leaders, key policymakers, and private sector traders understand the challenges they and their trading partners face in reducing logistical barriers to international commerce. As the backbone of international trade, logistics encompasses freight transportation, warehousing, border clearance, payment systems, and many other functions. These functions are performed mostly by private service providers for private traders and owners of goods, but logistics is also important for the public policies of national governments and regional and international organizations. Because global supply chains are so varied and complex, the efficiency of logistics depends on government services, investments, and policies. Building infrastructure, developing a regulatory regime for transport services, and designing and implementing efficient customs clearance procedures are all areas where governments play an important role.  The improvements in global logistics over the past two decades have been driven by innovation and a great increase in global trade. While policies and investments that enable good logistics practices help modernize the best-performing countries, logistics still lags in many developing countries. Indeed, the "logistics gap" evident in the first two editions of this report remains.  The importance of logistics performance for economic growth, diversification, and poverty reduction has long been widely recognized. National governments can facilitate trade through investments in both "hard" and "soft" infrastructure. Countries have improved their logistics performance by implementing strategic and sustained interventions, mobilizing actors across traditional sector silos, and involving the private sector. Logistics is also increasingly important for sustainability. A focus on the environmental impacts of logistics practices is also included in the LPI.

IndicatorName: Logistics performance index: Efficiency of customs clearance process (1=low to 5=high)

Limitationsandexceptions: The Logistics Performance Index is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance. Despite being the most comprehensive data source for country logistics and trade facilitation, the LPI has two important limitations. First, the experience of international freight forwarders might not represent the broader logistics environment in poor countries, which often rely on traditional operators. And the international and traditional operators might differ in their interactions with government agencies - and in their service levels. Second, for landlocked countries and small-island states, the LPI might reflect access problems outside the country assessed, such as transit difficulties. The low rating of a landlocked country might not adequately reflect its trade facilitation efforts, which depend on the workings of complex international transit systems. Landlocked countries cannot eliminate transit inefficiencies with domestic reforms.

Longdefinition: Data are from the Logistics Performance Index survey conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. Respondents evaluate eight countries on six core dimensions on a scale from 1 (worst) to 5 (best). The eight countries are chosen based on the most important export and import markets of the respondent's country, random selection, and, for landlocked countries, neighboring countries that connect them with international markets. The 2023 LPI survey was conducted from September 6 to November 5, 2022. It provided 4,090 country assessments by 652 logistics professionals in 115 countries in all World Bank regions. Details of the survey methodology and index construction methodology are included in Appendix 5 of the 2023 LPI report available at: https://lpi.worldbank.org/report. Respondents evaluated efficiency of customs clearance processes (i.e. speed, simplicity and predictability of formalities), on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.

Shortdefinition: Logistics professionals' perception of the efficiency of country's customs clearance processes (i.e. speed, simplicity and predictability of formalities), on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.

Source: Data are available online at: https://lpi.worldbank.org/. Summary results are published in World Bank (2023): Connecting to Compete: Trade Logistics in the Global Economy, The Logistics Performance Index and Its Indicators.

Statisticalconceptandmethodology: The indicator presents data from Logistics Performance Surveys conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics.  The Logistics Performance Index (LPI) uses a structured online survey of logistics professionals at multinational freight forwarders and the main express carriers. The 2023 International LPI covers 139 countries. Each survey respondent rates eight overseas markets on six core components of logistics performance (the efficiency of customs and border management clearance, the quality of trade and transport infrastructure, the ease of arranging competitively priced shipments, the competence and quality of logistics services, the ability to track and trace consignments, and the frequency shipments reach consignees within scheduled or expected delivery times). The components are rated on a scale (lowest score to highest score) from 1 to 5.  The eight countries are chosen based on the most important export and import markets of the country where the respondent is located, on random selection, and - for landlocked countries - on neighboring countries that form part of the land bridge connecting them with international markets.  The method used to select the group of countries rated by each respondent varies by the characteristics of the country where the respondent is located. If respondents did not provide information for all six components, interpolation is used to fill in missing values. The missing values are replaced with the country mean response for each question, adjusted by the respondent's average deviation from the country mean in the answered questions.  The LPI is constructed from the six indicators using principal component analysis (PCA), a standard statistical technique used to reduce the dimensionality of a dataset. In the LPI, the inputs for PCA are country scores the questions covering the main six components, averaged across all respondents providing data on a given overseas market. Scores are normalized by subtracting the sample mean and dividing by the standard deviation before conducting PCA. The output from PCA is a single indicator - the LPI - that is a weighted average of those scores. The weights are chosen to maximize the percentage of variation in the LPI's original six indicators. To construct the international LPI, normalized scores for each of the six original indicators are multiplied by their component loadings and then summed. The component loadings represent the weight given to each original indicator in constructing the international LPI. Since the loadings are similar for all six, the international LPI is close to a simple average of the indicators. To account for the sampling error created by the LPI's survey-based dataset, LPI scores are presented with approximate 80 percent confidence intervals.

Topic: Trade


IndicatorName: Logistics performance index: Quality of trade and transport-related infrastructure (1=low to 5=high)

Longdefinition: Data are from the Logistics Performance Index survey conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. Respondents evaluate eight countries on six core dimensions on a scale from 1 (worst) to 5 (best). The eight countries are chosen based on the most important export and import markets of the respondent's country, random selection, and, for landlocked countries, neighboring countries that connect them with international markets. The 2023 LPI survey was conducted from September 6 to November 5, 2022. It provided 4,090 country assessments by 652 logistics professionals in 115 countries in all World Bank regions. Details of the survey methodology and index construction methodology are included in Appendix 5 of the 2023 LPI report available at: https://lpi.worldbank.org/report. Respondents evaluated the quality of trade and transport related infrastructure (e.g. ports, railroads, roads, information technology), on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.

Shortdefinition: Logistics professionals' perception of country's quality of trade and transport related infrastructure (e.g. ports, railroads, roads, information technology), on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.


IndicatorName: Logistics performance index: Ease of arranging competitively priced shipments (1=low to 5=high)

Longdefinition: Data are from the Logistics Performance Index survey conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. Respondents evaluate eight countries on six core dimensions on a scale from 1 (worst) to 5 (best). The eight countries are chosen based on the most important export and import markets of the respondent's country, random selection, and, for landlocked countries, neighboring countries that connect them with international markets. The 2023 LPI survey was conducted from September 6 to November 5, 2022. It provided 4,090 country assessments by 652 logistics professionals in 115 countries in all World Bank regions. Details of the survey methodology and index construction methodology are included in Appendix 5 of the 2023 LPI report available at: https://lpi.worldbank.org/report. Respondents assessed the ease of arranging competitively priced shipments to markets, on a rating ranging from 1 (very difficult) to 5 (very easy). Scores are averaged across all respondents.

Shortdefinition: Logistics professionals' perception of the ease of arranging competitively priced shipments to a country, on a rating ranging from 1 (very difficult) to 5 (very easy). Scores are averaged across all respondents.


IndicatorName: Logistics performance index: Competence and quality of logistics services (1=low to 5=high)

Longdefinition: Data are from the Logistics Performance Index survey conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. Respondents evaluate eight countries on six core dimensions on a scale from 1 (worst) to 5 (best). The eight countries are chosen based on the most important export and import markets of the respondent's country, random selection, and, for landlocked countries, neighboring countries that connect them with international markets. The 2023 LPI survey was conducted from September 6 to November 5, 2022. It provided 4,090 country assessments by 652 logistics professionals in 115 countries in all World Bank regions. Details of the survey methodology and index construction methodology are included in Appendix 5 of the 2023 LPI report available at: https://lpi.worldbank.org/report. Respondents evaluated the overall level of competence and quality of logistics services (e.g. transport operators, customs brokers), on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.

Shortdefinition: Logistics professionals' perception of country's overall level of competence and quality of logistics services (e.g. transport operators, customs brokers), on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.


IndicatorName: Logistics performance index: Overall (1=low to 5=high)

Longdefinition:
The Logistics Performance Index overall score reflects perceptions of a country's logistics based on the efficiency of customs clearance process, quality of trade- and transport-related infrastructure, ease of arranging competitively priced shipments, quality of logistics services, ability to track and trace consignments, and frequency with which shipments reach the consignee within the scheduled time. The index ranges from 1 to 5, with a higher score representing better performance.
Data are from the Logistics Performance Index survey conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. The 2023 LPI survey was conducted from September 6 to November 5, 2022. It provided 4,090 country assessments by 652 logistics professionals in 115 countries in all World Bank regions. Respondents evaluate eight countries on six core dimensions on a scale from 1 (worst) to 5 (best). The eight countries are chosen based on the most important export and import markets of the respondent's country, random selection, and, for landlocked countries, neighboring countries that connect them with international markets.
Scores for the six areas are averaged across all respondents and aggregated to a single score using principal components analysis.
Details of the survey methodology and index construction methodology are included in Appendix 5 of the 2023 LPI report available at: https://lpi.worldbank.org/report.

Shortdefinition: The Logistics Performance Index overall score reflects perceptions of a country's logistics based on efficiency of customs clearance process, quality of trade- and transport-related infrastructure, ease of arranging competitively priced shipments, quality of logistics services, ability to track and trace consignments, and frequency with which shipments reach the consignee within the scheduled time. The index ranges from 1 to 5, with a higher score representing better performance.


IndicatorName: Logistics performance index: Frequency with which shipments reach consignee within scheduled or expected time (1=low to 5=high)

Longdefinition: Data are from the Logistics Performance Index survey conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. Respondents evaluate eight countries on six core dimensions on a scale from 1 (worst) to 5 (best). The eight countries are chosen based on the most important export and import markets of the respondent's country, random selection, and, for landlocked countries, neighboring countries that connect them with international markets. The 2023 LPI survey was conducted from September 6 to November 5, 2022. It provided 4,090 country assessments by 652 logistics professionals in 115 countries in all World Bank regions. Details of the survey methodology and index construction methodology are included in Appendix 5 of the 2023 LPI report available at: https://lpi.worldbank.org/report. Respondents assessed how often the shipments to assessed markets reach the consignee within the scheduled or expected delivery time, on a rating ranging from 1 (hardly ever) to 5 (nearly always). Scores are averaged across all respondents.

Shortdefinition: Logistics professionals' perception of how often the shipments to assessed country reach the consignee within the scheduled or expected delivery time, on a rating ranging from 1 (hardly ever) to 5 (nearly always). Scores are averaged across all respondents.


IndicatorName: Logistics performance index: Ability to track and trace consignments (1=low to 5=high)

Longdefinition: Data are from the Logistics Performance Index survey conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. Respondents evaluate eight countries on six core dimensions on a scale from 1 (worst) to 5 (best). The eight countries are chosen based on the most important export and import markets of the respondent's country, random selection, and, for landlocked countries, neighboring countries that connect them with international markets. The 2023 LPI survey was conducted from September 6 to November 5, 2022. It provided 4,090 country assessments by 652 logistics professionals in 115 countries in all World Bank regions. Details of the survey methodology and index construction methodology are included in Appendix 5 of the 2023 LPI report available at: https://lpi.worldbank.org/report. Respondents evaluated the ability to track and trace consignments when shipping to the market, on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.

Shortdefinition: Logistics professionals' perception of the ability to track and trace consignments when shipping to the country, on a rating ranging from 1 (very low) to 5 (very high). Scores are averaged across all respondents.


Aggregationmethod: Sum

Developmentrelevance:
Although national defense is an important function of government and security from external threats that contributes to economic development, high military expenditures for defense or civil conflicts burden the economy and may impede growth. Data on military expenditures are a rough indicator of the portion of national resources used for military activities and of the burden on the economy.

Comparisons of military spending among countries should take into account the many factors that influence perceptions of vulnerability and risk, including historical and cultural traditions, the length of borders that need defending, the quality of relations with neighbors, and the role of the armed forces in the body politic.

Generalcomments: Data for some countries are based on partial or uncertain data or rough estimates.

IndicatorName: Arms imports (SIPRI trend indicator values)

Limitationsandexceptions:
SIPRI calculates the volume of transfers to, from and between all parties using the TIV and the number of weapon systems or subsystems delivered in a given year. This data is intended to provide a common unit to allow the measurement if trends in the flow of arms to particular countries and regions over time. Therefore, the main priority is to ensure that the TIV system remains consistent over time, and that any changes introduced are backdated.

SIPRI TIV figures do not represent sales prices for arms transfers. They should therefore not be directly compared with gross domestic product (GDP), military expenditure, sales values or the financial value of export licences in an attempt to measure the economic burden of arms imports or the economic benefits of exports. They are best used as the raw data for calculating trends in international arms transfers over periods of time, global percentages for suppliers and recipients, and percentages for the volume of transfers to or from particular states.

Longdefinition: Arms transfers cover the supply of military weapons through sales, aid, gifts, and those made through manufacturing licenses. Data cover major conventional weapons such as aircraft, armored vehicles, artillery, radar systems, missiles, and ships designed for military use. Excluded are transfers of other military equipment such as small arms and light weapons, trucks, small artillery, ammunition, support equipment, technology transfers, and other services. Figures are SIPRI Trend Indicator Values (TIVs) expressed in US$ m. A '0' indicates that the value of deliveries is less than US$0.5m.

Notesfromoriginalsource:
SIPRI statistical data on arms transfers relates to actual deliveries of major conventional weapons. To permit comparison between the data on such deliveries of different weapons and to identify general trends, SIPRI has developed a unique system to measure the volume of international transfers of major conventional weapons using a common unit, the trend-indicator value (TIV).

The TIV is based on the known unit production costs of a core set of weapons and is intended to represent the transfer of military resources rather than the financial value of the transfer. Weapons for which a production cost is not known are compared with core weapons based on: size and performance characteristics (weight, speed, range and payload); type of electronics, loading or unloading arrangements, engine, tracks or wheels, armament and materials; and the year in which the weapon was produced. A weapon that has been in service in another armed force is given a value 40 per cent of that of a new weapon. A used weapon that has been significantly refurbished or modified by the supplier before delivery is given a value of 66 per cent of that of a new weapon.

Source: Stockholm International Peace Research Institute (SIPRI), Arms Transfers Programme (http://portal.sipri.org/publications/pages/transfer/splash).

Statisticalconceptandmethodology:
Stockholm International Peace Research Institute (SIPRI)'s Arms Transfers Program collects data on arms transfers from open sources. Since publicly available information is inadequate for tracking all weapons and other military equipment, SIPRI covers only what it terms major conventional weapons. Data cover the supply of weapons through sales, aid, gifts, and manufacturing licenses; therefore the term arms transfers rather than arms trade is used. SIPRI data also cover weapons supplied to or from rebel forces in an armed conflict as well as arms deliveries for which neither the supplier nor the recipient can be identified with acceptable certainty; these data are available in SIPRI's database.

Data cover major conventional weapons such as aircraft, armored vehicles, artillery, radar systems and other sensors, missiles, and ships designed for military use as well as some major components such as turrets for armored vehicles and engines. Excluded are other military equipment such as most small arms and light weapons, trucks, small artillery, ammunition, support equipment, technology transfers, and other services.

Topic: Public Sector: Defense & arms trade


IndicatorName: Armed forces personnel, total

Limitationsandexceptions: Data excludes personnel not on active duty, therefore it underestimates the share of the labor force working for the defense establishment. The cooperation of governments of all countries listed in “The Military Balance” has been sought by IISS and, in many cases, received.  However, some data in “The Military Balance” is estimated.

Longdefinition: Armed forces personnel are active duty military personnel, including paramilitary forces if the training, organization, equipment, and control suggest they may be used to support or replace regular military forces.

Source: International Institute for Strategic Studies, The Military Balance.

Statisticalconceptandmethodology: Military data on manpower represent quantitative assessment of the personnel strengths of the world's armed forces. The IISS collects the data from a wide variety of sources. The numbers are based on the most accurate data available to, or on the best estimate that can be made by the International Institute for Strategic Studies (IISS) at the time of its annual publication. The current WDI indicator includes active armed forces and active paramilitary (but not reservists). Armed forces personnel comprise all servicemen and women on full-time duty, including conscripts and long-term assignments from the Reserves (“Reserve” describes formations and units not fully manned or operational in peacetime, but which can be mobilized by recalling reservists in an emergency). The indicator includes paramilitary forces. The source of the data (IISS) reports armed forces and paramilitary forces separately, however these figures are added for the purpose of computing this series. Home Guard units are counted as paramilitary.


Aggregationmethod: Weighted average

IndicatorName: Armed forces personnel (% of total labor force)

Limitationsandexceptions: Data exclude personnel not on active duty, therefore they underestimate the share of the labor force working for the defense establishment. Governments rarely report the size of their armed forces, so such data typically come from intelligence sources. Unless otherwise indicated, reserves includes all reservists committed to rejoining the armed forces in an emergency, except when national reserve service obligations following conscription last almost a lifetime.

Longdefinition: Armed forces personnel are active duty military personnel, including paramilitary forces if the training, organization, equipment, and control suggest they may be used to support or replace regular military forces. Labor force comprises all people who meet the International Labour Organization's definition of the economically active population.

Statisticalconceptandmethodology:
Military data on manpower represent quantitative assessment of the personnel strengths of the world's armed forces. The numbers are based on the most accurate data available to, or, on the best estimate that can be made by the International Institute for Strategic Studies (IISS) at the time of its annual publication. The IISS collects the data from national governments.

Armed forces personnel comprise all servicemen and women on full-time duty (including conscripts and long-term assignments from the Reserves). Reserve describes formations and units not fully manned or operational in peacetime, but which can be mobilized by recalling reservists in an emergency. IISS estimates of effective reservist strengths on the numbers available within five years of completing full-time service, unless there is good evidence that obligations are enforced for longer. Although paramilitary forces whose training, organization, equipment and control suggest they may be used to support or replace regular military forces, they are not included in the armed forces personnel. Home Guard units are counted as paramilitary.

Data are shown as percentage of total labor force. According to International Labour Organization (ILO armed forces occupations include all jobs held by members of the armed forces. Members of the armed forces are those personnel who are currently serving in the armed forces, including auxiliary services, whether on a voluntary or compulsory basis, and who are not free to accept civilian employment and are subject to military discipline. Included are regular members of the army, navy, air force and other military services, as well as conscripts enrolled for military training or other service for a specified period. Excluded are persons in civilian employment of government establishments concerned with defense issues; police (other than military police); customs inspectors and members of border or other armed civilian services; persons who have been temporarily withdrawn from civilian life for a short period of military training or retraining, according to national requirements, and members of military reserves not currently on active service.


Developmentrelevance:
Although national defense is an important function of government and security from external threats that contributes to economic development, high military expenditures for defense or civil conflicts burden the economy and may impede growth. Data on military expenditures as a share of gross domestic product (GDP) are a rough indicator of the portion of national resources used for military activities and of the burden on the economy.

Data on military expenditures as a share of gross domestic product (GDP) are a rough indicator of the portion of national resources used for military activities and of the burden on the economy. As an "input" measure military expenditures are not directly related to the "output" of military activities, capabilities, or security. Comparisons of military spending among countries should take into account the many factors that influence perceptions of vulnerability and risk, including historical and cultural traditions, the length of borders that need defending, the quality of relations with neighbors, and the role of the armed forces in the body politic.

Generalcomments: Data for some countries are based on partial or uncertain data or rough estimates. For additional details please refer to the military expenditure database on the SIPRI website: https://sipri.org/databases/milex

IndicatorName: Military expenditure (current USD)

License_Type: Use and distribution of these data are subject to Stockholm International Peace Research Institute (SIPRI) terms and conditions.

Limitationsandexceptions:
Data on military expenditures are not compiled using standard definitions and are often incomplete and unreliable due to countries' reluctance to disclose military information. Even in countries where the parliament vigilantly reviews budgets and spending, military expenditures and arms transfers rarely receive close scrutiny or full, public disclosure (see Ball 1984 and Happe and Wakeman-Linn 1994). However, the Stockholm International Peace Research Institute (SIPRI) has adopted a definition of military expenditure derived from the North Atlantic Treaty Organization's (NATO) former definition (in use until 2002; see Definitions).

Data on military expenditures as a share of central government expenditures use data on central government expenditures from the International Monetary Fund (IMF). Therefore the data may differ from comparable data published by national governments.

In the many cases where SIPRI cannot make independent estimates, it uses the national data provided. Because of the differences in definitions and the difficulty in verifying the accuracy and completeness of data, data on military expenditures are not always comparable across countries. However, SIPRI puts a high priority on ensuring that the data series for each country is comparable over time.

Longdefinition: Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another).

Shortdefinition: Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces.

Source: Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.

Statisticalconceptandmethodology:
SIPRI military expenditure data includes military and civil personnel, including retirement pensions and social services for military personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, and weapons conversion and destruction. This definition cannot be applied for all countries, however, since that would require more detailed information than is available about military budgets and off-budget military expenditures (for example, whether military budgets cover civil defense, reserves and auxiliary forces, police and paramilitary forces, and military pensions).

SIPRI data for the most recent years include two types of estimate which apply to all countries: (a) figures for the most recent years are for adopted budgets, budget estimates or revised estimates, and are revised, more often than not, in subsequent years; and (b) the deflator used for the latest year in the series is an estimate.

SIPRI's primary source of military expenditure data is official data provided by national governments. These data are derived from budget documents, defense white papers, and other public documents from official government agencies, including government responses to questionnaires sent by SIPRI, the UNODA, or the Organization for Security and Co-operation in Europe. Secondary sources include international statistics, such as those of NATO and the IMF's Government Finance Statistics Yearbook. Other secondary sources include country reports of the Economist Intelligence Unit, country reports by IMF staff, and specialist journals and newspapers.

The SIPRI military expenditure figures are presented on a calendar-year basis. The only exception is the USA, for which statistics report data on a fiscal-year basis. Calendar-year data are calculated on the assumption of an even rate of expenditure throughout the fiscal year.


IndicatorName: Military expenditure (current LCU)

Longdefinition: Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.)


IndicatorName: Military expenditure (% of GDP)

Limitationsandexceptions:
Data on military expenditures are not compiled using standard definitions and are often incomplete and unreliable due to countries' reluctance to disclose military information. Even in countries where the parliament vigilantly reviews budgets and spending, military expenditures and arms transfers rarely receive close scrutiny or full, public disclosure (see Ball 1984 and Happe and Wakeman-Linn 1994). However, the Stockholm International Peace Research Institute (SIPRI) has adopted a definition of military expenditure derived from the North Atlantic Treaty Organization's (NATO) former definition (in use until 2002; see Definitions).

In the many cases where SIPRI cannot make independent estimates, it uses the national data provided. Because of the differences in definitions and the difficulty in verifying the accuracy and completeness of data, data on military expenditures are not always comparable across countries. However, SIPRI puts a high priority on ensuring that the data series for each country is comparable over time.

Statisticalconceptandmethodology:
SIPRI military expenditure data includes military and civil personnel, including retirement pensions and social services for military personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, and weapons conversion and destruction. This definition cannot be applied for all countries, however, since that would require more detailed information than is available about military budgets and off-budget military expenditures (for example, whether military budgets cover civil defense, reserves and auxiliary forces, police and paramilitary forces, and military pensions).

SIPRI data for the most recent years include two types of estimate which apply to all countries: (a) figures for the most recent years are for adopted budgets, budget estimates or revised estimates, and are revised, more often than not, in subsequent years; and (b) the deflator used for the latest year in the series is an estimate SIPRI's primary source of military expenditure data is official data provided by national governments. These data are derived from budget documents, defense white papers, and other public documents from official government agencies, including government responses to questionnaires sent by SIPRI, the UNODA, or the Organization for Security and Co-operation in Europe. Secondary sources include international statistics, such as those of NATO and the IMF's Government Finance Statistics Yearbook. Other secondary sources include country reports of the Economist Intelligence Unit, country reports by IMF staff, and specialist journals and newspapers.

The data on military expenditures as a share of GDP are SIPRI estimates. The SIPRI military expenditure figures are presented on a calendar-year basis. The only exception is the USA, for which statistics report data on a fiscal-year basis. Calendar-year data are calculated on the assumption of an even rate of expenditure throughout the fiscal year. The ratio of military expenditure to GDP is calculated in domestic currency at current prices and for calendar years.

The SIPRI military expenditure figures are presented on a calendar-year basis. The only exception is the USA, for which statistics report data on a fiscal-year basis. Calendar-year data are calculated on the assumption of an even rate of expenditure throughout the fiscal year.


Developmentrelevance:
Although national defense is an important function of government and security from external threats that contributes to economic development, high military expenditures for defense or civil conflicts burden the economy and may impede growth. Data on military expenditures as a share of gross domestic product (GDP) are a rough indicator of the portion of national resources used for military activities and of the burden on the economy.

As an "input" measure military expenditures are not directly related to the "output" of military activities, capabilities, or security. Comparisons of military spending among countries should take into account the many factors that influence perceptions of vulnerability and risk, including historical and cultural traditions, the length of borders that need defending, the quality of relations with neighbors, and the role of the armed forces in the body politic.

Comparisons of military spending among countries should take into account the many factors that influence perceptions of vulnerability and risk, including historical and cultural traditions, the length of borders that need defending, the quality of relations with neighbors, and the role of the armed forces in the body politic.

IndicatorName: Military expenditure (% of general government expenditure)


IndicatorName: Arms exports (SIPRI trend indicator values)

Longdefinition: Arms transfers cover the supply of military weapons through sales, aid, gifts, and those made through manufacturing licenses. Data cover major conventional weapons such as aircraft, armored vehicles, artillery, radar systems, missiles, and ships designed for military use. Excluded are transfers of other military equipment such as small arms and light weapons, trucks, small artillery, ammunition, support equipment, technology transfers, and other services. Figures are SIPRI Trend Indicator Values (TIVs) expressed in US$ m.  A '0' indicates that the value of deliveries is less than US$0.5m


Aggregationmethod: Gap-filled total

IndicatorName: General government final consumption expenditure (current US$)

Limitationsandexceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total.

Longdefinition: General government final consumption expenditure (formerly general government consumption) includes all government current expenditures for purchases of goods and services (including compensation of employees). It also includes most expenditures on national defense and security, but excludes government military expenditures that are part of government capital formation. Data are in current U.S. dollars.

Source: World Bank national accounts data, and OECD National Accounts data files.

Statisticalconceptandmethodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Topic: Economic Policy & Debt: National accounts: US$ at current prices: Expenditure on GDP


IndicatorName: General government final consumption expenditure (current LCU)

Longdefinition: General government final consumption expenditure (formerly general government consumption) includes all government current expenditures for purchases of goods and services (including compensation of employees). It also includes most expenditures on national defense and security, but excludes government military expenditures that are part of government capital formation. Data are in current local currency.

Topic: Economic Policy & Debt: National accounts: Local currency at current prices: Expenditure on GDP


Developmentrelevance: An economy's growth is measured by the change in the volume of its output or in the real incomes of its residents. The 2008 United Nations System of National Accounts (2008 SNA) offers three plausible indicators for calculating growth: the volume of gross domestic product (GDP), real gross domestic income, and real gross national income. The volume of GDP is the sum of value added, measured at constant prices, by households, government, and industries operating in the economy. GDP accounts for all domestic production, regardless of whether the income accrues to domestic or foreign institutions.

IndicatorName: General government final consumption expenditure (constant 2015 US$)

Limitationsandexceptions:
Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total.

Measures of growth in consumption and capital formation are subject to two kinds of inaccuracy. The first stems from the difficulty of measuring expenditures at current price levels. The second arises in deflating current price data to measure volume growth, where results depend on the relevance and reliability of the price indexes and weights used. Measuring price changes is more difficult for investment goods than for consumption goods because of the one-time nature of many investments and because the rate of technological progress in capital goods makes capturing change in quality difficult. (An example is computers - prices have fallen as quality has improved.)

To obtain government consumption in constant prices, countries may deflate current values by applying a wage (price) index or extrapolate from the change in government employment. Neither technique captures improvements in productivity or changes in the quality of government services.

Longdefinition: General government final consumption expenditure (formerly general government consumption) includes all government current expenditures for purchases of goods and services (including compensation of employees). It also includes most expenditures on national defense and security, but excludes government military expenditures that are part of government capital formation. Data are in constant 2015 prices, expressed in U.S. dollars.

Topic: Economic Policy & Debt: National accounts: US$ at constant 2015 prices: Expenditure on GDP


IndicatorName: General government final consumption expenditure (annual % growth)

Longdefinition: Annual percentage growth of general government final consumption expenditure based on constant local currency. Aggregates are based on constant 2015 prices, expressed in U.S. dollars. General government final consumption expenditure (general government consumption) includes all government current expenditures for purchases of goods and services (including compensation of employees). It also includes most expenditures on national defense and security, but excludes government military expenditures that are part of government capital formation.

Topic: Economic Policy & Debt: National accounts: Growth rates


BasePeriod: varies by country

IndicatorName: General government final consumption expenditure (constant LCU)

Longdefinition: General government final consumption expenditure (formerly general government consumption) includes all government current expenditures for purchases of goods and services (including compensation of employees). It also includes most expenditures on national defense and security, but excludes government military expenditures that are part of government capital formation. Data are in constant local currency.

Topic: Economic Policy & Debt: National accounts: Local currency at constant prices: Expenditure on GDP


IndicatorName: General government final consumption expenditure (% of GDP)

Longdefinition: General government final consumption expenditure (formerly general government consumption) includes all government current expenditures for purchases of goods and services (including compensation of employees). It also includes most expenditures on national defense and security, but excludes government military expenditures that are part of government capital formation.

Topic: Economic Policy & Debt: National accounts: Shares of GDP & other


IndicatorName: Household and NPISHs Final consumption expenditure (current US$)

Longdefinition: Household and NPISHs final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. This indicator includes the expenditures of nonprofit institutions serving households even when reported separately by the country. Data are in current U.S. dollars.


IndicatorName: Household and NPISHs Final consumption expenditure (current LCU)

Longdefinition: Household and NPISHs final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. This indicator includes the expenditures of nonprofit institutions serving households even when reported separately by the country. Data are in current local currency.


IndicatorName: Households and NPISHs final consumption expenditure: linked series (current LCU)

Longdefinition: Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. This series has been linked to produce a consistent time series to counteract breaks in series over time due to changes in base years, source data and methodologies. Thus, it may not be comparable with other national accounts series in the database for historical years. Data are in local currency, at current prices.

Source: World Bank staff estimates based on World Bank national accounts data archives, OECD National Accounts, and the IMF WEO database.


IndicatorName: Households and NPISHs Final consumption expenditure (constant 2015 US$)

Limitationsandexceptions:
Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Household final consumption expenditure is often estimated as a residual, by subtracting all other known expenditures from GDP. The resulting aggregate may incorporate fairly large discrepancies. When household consumption is calculated separately, many of the estimates are based on household surveys, which tend to be one-year studies with limited coverage. Thus the estimates quickly become outdated and must be supplemented by estimates using price- and quantity-based statistical procedures. Complicating the issue, in many developing countries the distinction between cash outlays for personal business and those for household use may be blurred.

Informal economic activities pose a particular measurement problem, especially in developing countries, where much economic activity is unrecorded. A complete picture of the economy requires estimating household outputs produced for home use, sales in informal markets, barter exchanges, and illicit or deliberately unreported activities. The consistency and completeness of such estimates depend on the skill and methods of the compiling statisticians.

Measures of growth in consumption and capital formation are subject to two kinds of inaccuracy. The first stems from the difficulty of measuring expenditures at current price levels. The second arises in deflating current price data to measure volume growth, where results depend on the relevance and reliability of the price indexes and weights used. Measuring price changes is more difficult for investment goods than for consumption goods because of the one-time nature of many investments and because the rate of technological progress in capital goods makes capturing change in quality difficult. (An example is computers - prices have fallen as quality has improved.)

Longdefinition: Household and NPISHs final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. This indicator includes the expenditures of nonprofit institutions serving households even when reported separately by the country. Data are in constant 2015 prices, expressed in U.S. dollars.

Statisticalconceptandmethodology:
Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Deflators for household consumption are usually calculated on the basis of the consumer price index.


IndicatorName: Household and NPISHs Final consumption expenditure (annual % growth)

Longdefinition: Annual percentage growth of household and NPISHs final consumption expenditure based on constant local currency. Aggregates are based on constant 2015 prices, expressed in U.S. dollars. Household and NPISHs final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. This indicator includes the expenditures of nonprofit institutions serving households even when reported separately by the country.


IndicatorName: Household and NPISHs Final consumption expenditure (constant LCU)

Longdefinition: Household and NPISHs final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. This indicator includes the expenditures of nonprofit institutions serving households even when reported separately by the country. Data are in constant local currency.


IndicatorName: Households and NPISHs final consumption expenditure per capita (constant 2015 US$)

Longdefinition: Household final consumption expenditure per capita (private consumption per capita) is calculated using private consumption in constant 2015 prices and World Bank population estimates. Household final consumption expenditure is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. Data are in constant 2015 U.S. dollars.


IndicatorName: Household final consumption expenditure per capita growth (annual %)

Longdefinition: Annual percentage growth of household final consumption expenditure per capita, which is calculated using household final consumption expenditure in constant 2010 prices and World Bank population estimates. Household final consumption expenditure (private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country.


Longdefinition:
This indicator provides values for households and NPISHs final consumption expenditure expressed in current international dollars converted by purchasing power parity (PPP) conversion factor.

Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country.

PPP conversion factor is a spatial price deflator and currency converter that eliminates the effects of the differences in price levels between countries.

From July 2020, “Households and NPISHs final consumption expenditure: linked series (current LCU)” [NE.CON.PRVT.CN.AD] is used as underlying expenditure in local currency unit so that it’s in line with time series of PPP conversion factor, private consumption (LCU per international $), which are extrapolated with linked CPI.

Source: International Comparison Program, World Bank | World Development Indicators database, World Bank | Eurostat-OECD PPP Programme.

Statisticalconceptandmethodology:
Typically, higher income countries have higher price levels, while lower income countries have lower price levels (Balassa-Samuelson effect). Market exchange rate-based cross-country comparisons of GDP at its expenditure components reflect both differences in economic outputs (volumes) and prices. Given the differences in price levels, the size of higher income countries is inflated, while the size of lower income countries is depressed in the comparison. PPP-based cross-country comparisons of GDP at its expenditure components only reflect differences in economic outputs (volume), as PPPs control for price level differences between the countries. Hence, the comparison reflects the real size of the countries.

For more information on underlying households and NPISHs final consumption expenditure in local currency, please refer to the metadata for "Households and NPISHs Final consumption expenditure, PPP (current international $)" [NE.CON.PRVT.PP.CD]. For more information on underlying PPP conversion factor, please refer to the metadata for "PPP conversion factor, private consumption (LCU per international $)" [PA.NUS.PRVT.PP].

For the concept and methodology of PPP, please refer to the International Comparison Program (ICP)’s website (https://www.worldbank.org/en/programs/icp).

Topic: Economic Policy & Debt: Purchasing power parity


IndicatorName: Households and NPISHs Final consumption expenditure, PPP (constant 2021 international $)

Longdefinition: Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. Data are converted to constant 2021 international dollars using purchasing power parity rates.

Statisticalconceptandmethodology: For the concept and methodology of PPP, please refer to the International Comparison Program (ICP)’s website (https://www.worldbank.org/en/programs/icp).


IndicatorName: Households and NPISHs final consumption expenditure (% of GDP)

Limitationsandexceptions:
Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Household final consumption expenditure is often estimated as a residual, by subtracting all other known expenditures from GDP. The resulting aggregate may incorporate fairly large discrepancies. When household consumption is calculated separately, many of the estimates are based on household surveys, which tend to be one-year studies with limited coverage. Thus the estimates quickly become outdated and must be supplemented by estimates using price- and quantity-based statistical procedures. Complicating the issue, in many developing countries the distinction between cash outlays for personal business and those for household use may be blurred.

Informal economic activities pose a particular measurement problem, especially in developing countries, where much economic activity is unrecorded. A complete picture of the economy requires estimating household outputs produced for home use, sales in informal markets, barter exchanges, and illicit or deliberately unreported activities. The consistency and completeness of such estimates depend on the skill and methods of the compiling statisticians.

Longdefinition: Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. This item also includes any statistical discrepancy in the use of resources relative to the supply of resources.


IndicatorName: Final consumption expenditure (current US$)

Longdefinition: Final consumption expenditure (formerly total consumption) is the sum of household final consumption expenditure (private consumption) and general government final consumption expenditure (general government consumption). Data are in current U.S. dollars.


IndicatorName: Final consumption expenditure (current LCU)

Longdefinition: Final consumption expenditure (formerly total consumption) is the sum of household final consumption expenditure (private consumption) and general government final consumption expenditure (general government consumption). Data are in current local currency.


IndicatorName: Final consumption expenditure (constant 2015 US$)

Longdefinition: Final consumption expenditure (formerly total consumption) is the sum of household final consumption expenditure (formerly private consumption) and general government final consumption expenditure (formerly general government consumption). Data are in constant 2015 prices, expressed in U.S. dollars.


IndicatorName: Final consumption expenditure (annual % growth)

Longdefinition: Average annual growth of final consumption expenditure based on constant local currency. Aggregates are based on constant 2015 prices, expressed in U.S. dollars. Final consumption expenditure (formerly total consumption) is the sum of household final consumption expenditure (formerly private consumption) and general government final consumption expenditure (formerly general government consumption). This estimate includes any statistical discrepancy in the use of resources relative to the supply of resources.


IndicatorName: Final consumption expenditure (constant LCU)

Longdefinition: Final consumption expenditure (formerly total consumption) is the sum of household final consumption expenditure (formerly private consumption) and general government final consumption expenditure (formerly general government consumption). Data are in constant local currency.


IndicatorName: Final consumption expenditure (% of GDP)

Longdefinition: Final consumption expenditure (formerly total consumption) is the sum of household final consumption expenditure (private consumption) and general government final consumption expenditure (general government consumption). This estimate includes any statistical discrepancy in the use of resources relative to the supply of resources.


IndicatorName: Gross national expenditure deflator (base year varies by country)

Longdefinition: Gross national expenditure (formerly domestic absorption) is the sum of household final consumption expenditure (formerly private consumption), general government final consumption expenditure (formerly general government consumption), and gross capital formation (formerly gross domestic investment).


IndicatorName: Gross national expenditure (current US$)

Longdefinition: Gross national expenditure (formerly domestic absorption) is the sum of household final consumption expenditure (formerly private consumption), general government final consumption expenditure (formerly general government consumption), and gross capital formation (formerly gross domestic investment). Data are in current U.S. dollars.


IndicatorName: Gross national expenditure (current LCU)

Longdefinition: Gross national expenditure (formerly domestic absorption) is the sum of household final consumption expenditure (formerly private consumption), general government final consumption expenditure (formerly general government consumption), and gross capital formation (formerly gross domestic investment). Data are in current local currency.


IndicatorName: Gross national expenditure (constant 2015 US$)

Longdefinition: Gross national expenditure (formerly domestic absorption) is the sum of household final consumption expenditure (formerly private consumption), general government final consumption expenditure (formerly general government consumption), and gross capital formation (formerly gross domestic investment). Data are in constant 2015 prices, expressed in U.S. dollars.


IndicatorName: Gross national expenditure (constant LCU)

Longdefinition: Gross national expenditure (formerly domestic absorption) is the sum of household final consumption expenditure (formerly private consumption), general government final consumption expenditure (formerly general government consumption), and gross capital formation (formerly gross domestic investment). Data are in constant local currency.


IndicatorName: Gross national expenditure (% of GDP)


IndicatorName: Exports of goods and services (current US$)

Limitationsandexceptions:
Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total.

Data on exports and imports are compiled from customs reports and balance of payments data. Although the data from the payments side provide reasonably reliable records of cross-border transactions, they may not adhere strictly to the appropriate definitions of valuation and timing used in the balance of payments or corresponds to the change-of ownership criterion. This issue has assumed greater significance with the increasing globalization of international business. Neither customs nor balance of payments data usually capture the illegal transactions that occur in many countries. Goods carried by travelers across borders in legal but unreported shuttle trade may further distort trade statistics.

Longdefinition: Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in current U.S. dollars.


IndicatorName: Exports of goods and services (current LCU)

Longdefinition: Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in current local currency.


IndicatorName: Exports of goods and services (constant 2015 US$)

Longdefinition: Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in constant 2015 prices, expressed in U.S. dollars.


IndicatorName: Exports of goods and services (annual % growth)

Longdefinition: Annual growth rate of exports of goods and services based on constant local currency. Aggregates are based on constant 2015 prices, expressed in U.S. dollars. Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments.


IndicatorName: Exports of goods and services (constant LCU)

Longdefinition: Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in constant local currency.


IndicatorName: Exports of goods and services (% of GDP)

Longdefinition: Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments.


IndicatorName: Gross fixed capital formation, private sector (current LCU)

Longdefinition: Private investment covers gross outlays by the private sector (including private nonprofit agencies) on additions to its fixed domestic assets.


IndicatorName: Private fixed investment (% of GDFI)


IndicatorName: Gross fixed capital formation, private sector (% of GDP)


IndicatorName: Gross fixed capital formation (current US$)

Longdefinition: Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data are in current U.S. dollars.


IndicatorName: Gross fixed capital formation (current LCU)

Longdefinition: Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data are in current local currency.


IndicatorName: Gross fixed capital formation (constant 2015 US$)

Longdefinition: Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 2008 SNA, net acquisitions of valuables are also considered capital formation. Data are in constant 2015 prices, expressed in U.S. dollars.


IndicatorName: Gross fixed capital formation (annual % growth)

Longdefinition: Average annual growth of gross fixed capital formation based on constant local currency. Aggregates are based on constant 2015 prices, expressed in U.S. dollars. Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 2008 SNA, net acquisitions of valuables are also considered capital formation.


IndicatorName: Gross fixed capital formation (constant LCU)

Longdefinition: Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data are in constant local currency.


IndicatorName: Gross fixed capital formation (% of GDP)

Longdefinition: Gross fixed capital formation (formerly gross domestic fixed investment) includes land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.


IndicatorName: Changes in inventories (current US$)

Longdefinition: Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." Data are in current U.S. dollars.


IndicatorName: Changes in inventories (current LCU)

Longdefinition: Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." Data are in current local currency.


IndicatorName: Changes in inventories (constant LCU)

Longdefinition: Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." Data are in constant local currency.


IndicatorName: Gross capital formation (current US$)

Limitationsandexceptions:
Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total.

Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow method using data from production, trade, and construction activities. The quality of data on government fixed capital formation depends on the quality of government accounting systems (which tend to be weak in developing countries). Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable.

Estimates of changes in inventories are rarely complete but usually include the most important activities or commodities. In some countries these estimates are derived as a composite residual along with household final consumption expenditure. According to national accounts conventions, adjustments should be made for appreciation of the value of inventory holdings due to price changes, but this is not always done. In highly inflationary economies this element can be substantial.

Longdefinition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data are in current U.S. dollars.


IndicatorName: Gross capital formation (current LCU)

Longdefinition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data are in current local currency.


IndicatorName: Gross capital formation (constant 2015 US$)

Limitationsandexceptions:
Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total.

Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow method using data from production, trade, and construction activities. The quality of data on government fixed capital formation depends on the quality of government accounting systems (which tend to be weak in developing countries). Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable.

Estimates of changes in inventories are rarely complete but usually include the most important activities or commodities. In some countries these estimates are derived as a composite residual along with household final consumption expenditure. According to national accounts conventions, adjustments should be made for appreciation of the value of inventory holdings due to price changes, but this is not always done. In highly inflationary economies this element can be substantial.

Measures of growth in consumption and capital formation are subject to two kinds of inaccuracy. The first stems from the difficulty of measuring expenditures at current price levels. The second arises in deflating current price data to measure volume growth, where results depend on the relevance and reliability of the price indexes and weights used. Measuring price changes is more difficult for investment goods than for consumption goods because of the one-time nature of many investments and because the rate of technological progress in capital goods makes capturing change in quality difficult. (An example is computers - prices have fallen as quality has improved.) Several countries estimate capital formation from the supply side, identifying capital goods entering an economy directly from detailed production and international trade statistics. This means that the price indexes used in deflating production and international trade, reflecting delivered or offered prices, will determine the deflator for capital formation expenditures on the demand side.

Longdefinition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 2008 SNA, net acquisitions of valuables are also considered capital formation. Data are in constant 2015 prices, expressed in U.S. dollars.


IndicatorName: Gross capital formation (annual % growth)

Longdefinition: Annual growth rate of gross capital formation based on constant local currency. Aggregates are based on constant 2015 prices, expressed in U.S. dollars. Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 2008 SNA, net acquisitions of valuables are also considered capital formation.


IndicatorName: Gross capital formation (constant LCU)

Longdefinition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. Data are in constant local currency.


IndicatorName: Gross capital formation (% of GDP)

Longdefinition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.


IndicatorName: Imports of goods and services (current US$)

Longdefinition: Imports of goods and services represent the value of all goods and other market services received from the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in current U.S. dollars.


IndicatorName: Imports of goods and services (current LCU)

Longdefinition: Imports of goods and services represent the value of all goods and other market services received from the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in current local currency.


IndicatorName: Imports of goods and services (constant 2015 US$)

Longdefinition: Imports of goods and services represent the value of all goods and other market services received from the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in constant 2015 prices, expressed in U.S. dollars.