Malawi - 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 Malawi was 0.400 as of 2020. As the graph below shows, over the past 30 years this indicator reached a maximum value of 0.583 in 1991 and a minimum value of 0.301 in 2000.

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 0.536
1991 0.583
1992 0.502
1993 0.515
1994 0.321
1995 0.318
1996 0.475
1997 0.525
1998 0.328
1999 0.319
2000 0.301
2001 0.305
2002 0.459
2003 0.391
2004 0.392
2005 0.387
2006 0.392
2007 0.386
2008 0.423
2009 0.451
2010 0.468
2011 0.503
2012 0.379
2013 0.314
2014 0.344
2015 0.374
2016 0.308
2017 0.344
2018 0.355
2019 0.369
2020 0.400

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