Georgia PPP Conversion Factor

Georgia’s purchasing‑power‑parity (PPP) conversion factor reached 0.91 in 2025, placing the country at 151st in the global ranking and representing the highest level recorded since the series began in 1990, when the factor was effectively zero. Over the 36‑year coverage period the indicator has moved from a trough at the start of the transition decade to a modest peak in the current year, reflecting gradual convergence of domestic prices with international benchmarks as market reforms and price liberalisation have deepened. The 2025 figure sits just below the Marshall Islands (0.92) and above Tunisia (0.90), suggesting that Georgia’s price level alignment is comparable to other small, reform‑oriented economies. Continued fiscal discipline, investment in productivity‑enhancing sectors and further integration into global value chains could sustain incremental improvements in the PPP conversion factor, while external shocks or policy reversals would risk flattening or reversing the upward trajectory.