Palau - 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 Palau was 0.873 as of 2020. As the graph below shows, over the past 20 years this indicator reached a maximum value of 0.929 in 2016 and a minimum value of 0.723 in 2004.

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
2000 0.778
2001 0.767
2002 0.758
2003 0.726
2004 0.723
2005 0.778
2006 0.766
2007 0.755
2008 0.784
2009 0.788
2010 0.771
2011 0.749
2012 0.780
2013 0.826
2014 0.834
2015 0.891
2016 0.929
2017 0.901
2018 0.879
2019 0.848
2020 0.873

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