The rates of real GDP growth for the United States and the euro area in the same quarter were minus 6.2 percent and minus 5.7 percent, respectively, and the fact that Japan's economy contracted more sharply underscores the severity of the country's current economic conditions.
Global experience indicates that PPPs work well when they combine the efficiency and risk assessment of the private sector with the public purpose of the government sector. However, they work poorly when they rely on the efficiency and risk assessment of the government sector and the public purpose of the private sector.