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?

  • $\begingroup$ Was my answer helpful? If not, let me know what is missing, to update. $\endgroup$
    – luchonacho
    Sep 4 '17 at 6:31

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 or here.
  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.

See this document or this website for further references.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.