<p>You are correct. That is the right way to go. </p>

<ol>
<li>Take your starting nominal GDP series in local currency units (e.g. Euros), and use the PPP rates to transform local currency units into nominal US dollars. You can find PPP rates <a href="http://data.worldbank.org/indicator/PA.NUS.PPP" rel="nofollow noreferrer">here</a> or <a href="https://data.oecd.org/conversion/purchasing-power-parities-ppp.htm" rel="nofollow noreferrer">here</a>.</li>
<li>Use the US GDP deflator (or a price index) to transform nominal GDP in USD into real GDP in USD. The base year is given by the chosen price index.</li>
</ol>

<p>You can find GDP in constant US dollars for 2011 form almost every country in the world <a href="http://data.worldbank.org/indicator/NY.GDP.MKTP.PP.KD" rel="nofollow noreferrer">here</a>.</p>

<p>See <a href="https://data.oecd.org/conversion/purchasing-power-parities-ppp.htm" rel="nofollow noreferrer">this</a> document or <a href="http://www.worldbank.org/en/programs/icp#6" rel="nofollow noreferrer">this</a> website for further references.</p>

CC BY-SA 3.0
2017-07-03T12:41:34.873Z
2017-07-03T12:41:34.873Z
luchonacho
<p>I want to convert a GDP series (I have it in current euros) of a country to constant 2005 international dollars. My idea is to divide the series by year 2005's $PPP$ conversion factor (the exchange rate) and adjust for inflation by dividing the whole series by the country's GDP deflator $(base \; year=2005)$.</p>

<p>Is this the right way to go? Do I need to adjust for inflation?</p>

CC BY-SA 3.0
2017-09-04T06:31:01.903Z
Was my answer helpful? If not, let me know what is missing, to update.
luchonacho
<gdp><exchange-rates><purchasing-power-partity>
Converting a GDP series to constant international dollars
Xlrv
# Converting a GDP series to constant international dollars

(Asked by: username_0 on 2016-03-15)

I want to convert a GDP series (I have it in current euros) of a country to constant 2005 international dollars. My idea is to divide the series by year 2005's $PPP$ conversion factor (the exchange rate) and adjust for inflation by dividing the whole series by the country's GDP deflator $(base \; year=2005)$.

Is this the right way to go? Do I need to adjust for inflation?

**Tags:** gdp, exchange-rates, purchasing-power-partity

> **Comments:**
> **username_1**: Was my answer helpful? If not, let me know what is missing, to update.  

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## 1 answers

### Answer by username_1 on 2017-07-03. Score: 3 | Accepted answer

You are correct. That is the right way to go.

1. Take your starting nominal GDP series in local currency units (e.g. Euros), and use the PPP rates to transform local currency units into nominal US dollars. You can find PPP rates [here](http://data.worldbank.org/indicator/PA.NUS.PPP) or [here](https://data.oecd.org/conversion/purchasing-power-parities-ppp.htm).
2. Use the US GDP deflator (or a price index) to transform nominal GDP in USD into real GDP in USD. The base year is given by the chosen price index.

You can find GDP in constant US dollars for 2011 form almost every country in the world [here](http://data.worldbank.org/indicator/NY.GDP.MKTP.PP.KD).

See [this](https://data.oecd.org/conversion/purchasing-power-parities-ppp.htm) document or [this](http://www.worldbank.org/en/programs/icp#6) website for further references.


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