Tanzania - 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 Tanzania was 0.387 as of 2020. As the graph below shows, over the past 30 years this indicator reached a maximum value of 0.459 in 2014 and a minimum value of 0.234 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 0.263
1991 0.290
1992 0.262
1993 0.234
1994 0.239
1995 0.263
1996 0.306
1997 0.343
1998 0.357
1999 0.350
2000 0.345
2001 0.323
2002 0.309
2003 0.306
2004 0.304
2005 0.303
2006 0.280
2007 0.299
2008 0.355
2009 0.348
2010 0.356
2011 0.351
2012 0.413
2013 0.442
2014 0.459
2015 0.404
2016 0.390
2017 0.397
2018 0.393
2019 0.392
2020 0.387

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