China - 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 China was 0.606 as of 2020. As the graph below shows, over the past 30 years this indicator reached a maximum value of 0.639 in 2018 and a minimum value of 0.259 in 1993.

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 0.324
1991 0.304
1992 0.290
1993 0.259
1994 0.285
1995 0.328
1996 0.344
1997 0.345
1998 0.338
1999 0.329
2000 0.328
2001 0.328
2002 0.325
2003 0.327
2004 0.341
2005 0.347
2006 0.360
2007 0.396
2008 0.458
2009 0.461
2010 0.492
2011 0.545
2012 0.564
2013 0.591
2014 0.612
2015 0.622
2016 0.600
2017 0.619
2018 0.639
2019 0.609
2020 0.606

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