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WEO Data Forum > Emerging economies: weight based on market exchange rate.


 
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Pete Emerging economies: weight based on market exchange rate.
Good evening from Madrid:

I managed to find in your last WEO the relative weight of emerging economies in PPP terms (around 44%). Any clue about the weight in market prices? (I dread to think that it might be around 30%, but not too sure).

Thank you very much in advance for your help,

6/3/2008 8:02:11 AM
WEOmoderator Re : Emerging economies: weight based on market exchange rate.
Weights for GDP based on market exchange rates can be found by looking at the economy's GDP in U.S. dollar terms relative to the overall group. For the WEO, we actually use the 3 year moving average of GDP to obtain our market exchange rate weights.

For example, to derive the 2009 weight of emerging and developing economies at market exchange rates, we'd divide the 2006-08 average of their nominal GDP in US dollars by the 2006-08 average of the World nominal GDP in US dollars. Using the latest WEO data, you'd get a relative weight of about 28% of the World - signifcantly less than the nearly 46% in PPP terms.

If you're interested, the FAQ for our online database has links to articles that further discuss PPP vs. market exchange rate weights.
6/4/2008 10:30:50 AM