Dominica PPP Conversion Factor

Dominica’s purchasing power parity (PPP) conversion factor has fallen markedly over the 36‑year series, moving from an early‑1990s level of 1.86 to a 2025 trough of 1.25, the lowest value among the 139 economies ranked by the World Bank. The factor peaked at 2.13 in 1999, indicating that a single unit of the domestic currency bought considerably more international goods at that time; the subsequent decline reflects persistent real‑exchange‑rate depreciation and lower relative price competitiveness. Compared with peers, Dominica’s 2025 conversion factor of 1.25 sits just above Curaçao’s 1.21 and below Australia’s 1.32, suggesting a modest but still weaker purchasing power than many small island economies. The long‑term downward trajectory points to structural constraints such as limited export diversification and vulnerability to external shocks. Future improvements in productivity, fiscal consolidation, or a shift toward higher‑value services could arrest the decline and potentially raise the PPP conversion factor in the coming years.