Impact of PPP - Deepstash

Impact of PPP

 The World Bank releases a report that compares the productivity and growth of various countries in terms of PPP and U.S. dollars.

The International Monetary Fund and the Organization for Economic Cooperation and Development use weights based on PPP metrics to make predictions and recommend economic policy. These policies can have an immediate short-term impact on financial markets.

Also, Investors who hold stock or bonds of foreign companies may use the survey's PPP figures to predict the impact of exchange-rate fluctuations on a country's economy, and thus the impact on their investment.

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