The UAE National Bureau of Statistics (NBS) and a technical team from the Economic and Social Commission for Western Asia (ESCWA), headed by Majid Skinny, Regional Coordinator for the International Comparison Program (ICP) Projects, discussed the UAE ICP Project for estimating Purchasing Power Parities (PPPs). The project aims to develop regular, sustainable, credible PPPs where indices constitute a reliable, transparent and accurate reference for the UAE Dirham purchasing power.
The PPP, which constitutes an important component of the ICP output, will allow for a more realistic comparison of the power of currencies corrected for price level differences and other distortions, which will, in turn, allow for a spatial real comparison of economies and macroeconomic indices and cost of living in different countries.
The UAE has played a major role in implementation of the International Comparison Program (ICP) in Western Asia.
The ESCWA delegation, which also includes Omar Hakooz, National Accounts Expert, is visiting the UAE within the framework of joint cooperation to develop statistical systems, share expertise and provide technical assistance on national accounts.
NBS experts said the success of the ICP pilot Project will assist the UAE to leverage statistical and analytical capacities and increase levels of coordination and integration in areas of price statistics and national accounts. The UAE will also be able to unify its mechanism for gathering, auditing and approving information besides calculating the purchasing power of the Dirham in each of the seven emirates and making realistic and accurate estimates of cost of living and conducting comparisons and evaluations of real economic growth at federal and local levels.
The UAE official added that the two sides will discuss proper solutions so as to come out with preliminary estimates of the final government expenditures at emirate-level.
Agenda of the UAE-ESCWA discussions will cover a wide range of topics including evaluation of data resources, methodologies of GDP estimates, data on household spending, foreign trade and others.
According to ESCWA, ICP objectives are many-sided: Measure the GDPs, incomes and expenditures of the countries, under comparison, at PPP real terms.
Calculate indices of volumes, prices, value of output, real income, real expenditure, productivities and investment.
Derive indicators that will serve the Millennium Development Goals, i.e. to reduce poverty.
Derive other indices for well being or standard of living, human development, and other social indicators.
Source : WAM News Agency for United Arab Emirates
