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European Union Compared by Economy > Currency > PPP conversion factor to official exchange rate ratio

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. Official exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U.S. dollar). The ratio of the PPP conversion factor to the official exchange rate (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.

CONTENTS

# COUNTRY AMOUNT DATE GRAPH HISTORY
1 Denmark 1.41 2005
2 Luxembourg 1.33 2005
3 Ireland 1.26 2005
4 Sweden 1.22 2005
5 Netherlands 1.17 2005
=6 Germany 1.15 2005
=6 Finland 1.15 2005
=6 France 1.15 2005
=9 Belgium 1.1 2005
=9 Austria 1.1 2005
=9 United Kingdom 1.1 2005
12 Italy 1.05 2005
=13 Spain 0.95 2005
=13 Cyprus 0.95 2004
15 Greece 0.87 2005
16 Portugal 0.85 2005
17 Slovenia 0.77 2005
18 Malta 0.72 2005
19 Croatia 0.66 2005
20 Estonia 0.63 2005
21 Hungary 0.61 2005
22 Czech Republic 0.59 2005
23 Poland 0.57 2005
24 Slovakia 0.54 2005
25 Lithuania 0.52 2005
=26 Latvia 0.5 2005
=26 Romania 0.5 2005
28 Bulgaria 0.38 2005

Citation

European Union Compared by Economy > Currency > PPP conversion factor to official exchange rate ratio

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