Guatemala PPP Conversion Factor

Guatemala’s purchasing power parity (PPP) conversion factor has risen dramatically since the earliest World Bank record in 1990, when it stood at 1.00, to a 2025 value of 3.35, ranking the country 111th globally. The factor peaked in 2011 at 3.64 before retreating to its current level, indicating that the relative price of goods and services in Guatemala has become roughly three‑and‑a‑third times cheaper than in the United States over the past 36 years. This upward trajectory mirrors the experience of peer economies such as China, whose PPP conversion factor is 3.40, and Israel, which also records 3.35, suggesting that Guatemala’s price environment has converged with those of rapidly developing markets. The long‑term increase reflects structural shifts, including modest inflation differentials and productivity gains, while the modest pullback from the 2011 peak may signal emerging cost pressures. Continued improvements in productivity and stable macro‑economic policies could sustain the upward trend, whereas external shocks or fiscal imbalances might reverse it.