Lao PDR - 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 Lao PDR was 0.319 as of 2020. As the graph below shows, over the past 30 years this indicator reached a maximum value of 0.347 in 2015 and a minimum value of 0.155 in 1998.

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 0.198
1991 0.218
1992 0.222
1993 0.241
1994 0.254
1995 0.265
1996 0.259
1997 0.222
1998 0.155
1999 0.161
2000 0.178
2001 0.168
2002 0.155
2003 0.165
2004 0.177
2005 0.185
2006 0.209
2007 0.231
2008 0.271
2009 0.268
2010 0.299
2011 0.332
2012 0.327
2013 0.346
2014 0.340
2015 0.347
2016 0.340
2017 0.338
2018 0.330
2019 0.321
2020 0.319

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