Nicaragua - Price level ratio of PPP conversion factor (GDP) to market exchange rate

The value for Price level ratio of PPP conversion factor (GDP) to market exchange rate in Nicaragua was 0.342 as of 2020. As the graph below shows, over the past 30 years this indicator reached a maximum value of 0.445 in 1992 and a minimum value of 0.335 in 2003.

Definition: Purchasing power parity conversion factor is the number of units of a country's currency required to buy the same amount of goods and services in the domestic market as a U.S. dollar would buy in the United States. The ratio of PPP conversion factor to market exchange rate is the result obtained by dividing the PPP conversion factor by the market exchange rate. The ratio, also referred to as the national price level, makes it possible to compare the cost of the bundle of goods that make up gross domestic product (GDP) across countries. It tells how many dollars are needed to buy a dollar's worth of goods in the country as compared to the United States. PPP conversion factors are based on the 2011 ICP round.

Source: World Bank, International Comparison Program database.

See also:

Year Value
1990 0.405
1991 0.380
1992 0.445
1993 0.428
1994 0.411
1995 0.408
1996 0.392
1997 0.377
1998 0.380
1999 0.366
2000 0.362
2001 0.359
2002 0.344
2003 0.335
2004 0.338
2005 0.343
2006 0.342
2007 0.347
2008 0.377
2009 0.378
2010 0.378
2011 0.388
2012 0.398
2013 0.393
2014 0.391
2015 0.387
2016 0.370
2017 0.360
2018 0.343
2019 0.339
2020 0.342

Statistical Concept and Methodology: The ratio of the PPP conversion factor to the market exchange rate - the national price level or comparative price level - measures differences in the price level at the gross domestic product (GDP) level. The price level index tends to be lower in poorer countries and to rise with income.

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: Purchasing power parity