Lesotho - 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 Lesotho was 0.358 as of 2020. As the graph below shows, over the past 30 years this indicator reached a maximum value of 0.562 in 2011 and a minimum value of 0.281 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 0.431
1991 0.460
1992 0.497
1993 0.471
1994 0.458
1995 0.495
1996 0.435
1997 0.434
1998 0.394
1999 0.380
2000 0.347
2001 0.306
2002 0.281
2003 0.393
2004 0.491
2005 0.513
2006 0.511
2007 0.446
2008 0.436
2009 0.431
2010 0.520
2011 0.562
2012 0.533
2013 0.455
2014 0.426
2015 0.372
2016 0.341
2017 0.413
2018 0.445
2019 0.413
2020 0.358

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