Tonga - 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 Tonga was 0.691 as of 2020. As the graph below shows, over the past 30 years this indicator reached a maximum value of 0.876 in 2012 and a minimum value of 0.453 in 2002.

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 0.543
1991 0.575
1992 0.581
1993 0.553
1994 0.722
1995 0.702
1996 0.720
1997 0.676
1998 0.581
1999 0.575
2000 0.573
2001 0.478
2002 0.453
2003 0.481
2004 0.547
2005 0.602
2006 0.653
2007 0.648
2008 0.700
2009 0.664
2010 0.765
2011 0.793
2012 0.876
2013 0.822
2014 0.772
2015 0.751
2016 0.671
2017 0.698
2018 0.722
2019 0.738
2020 0.691

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