Israel PPP Conversion Factor

Israel’s PPP conversion factor rose from the all‑time trough of 1.71 in 1990 to an all‑time peak of 3.99 in 2009, reflecting a substantial increase in the relative purchasing power of its domestic currency against the U.S. dollar over the past three decades. By 2025 the factor stood at 3.35, placing Israel at rank 110 globally and aligning it closely with peers such as Guatemala (3.35) and China (3.40). The 36‑year coverage shows a steady upward trajectory, with the most pronounced jump occurring during the early 2000s as export‑oriented sectors expanded and inflation differentials narrowed. Although the post‑2009 decline from 3.99 to 3.35 suggests a modest slowdown, the factor remains well above the 1990 baseline, indicating enduring gains in real income comparability. Future movements will likely hinge on exchange‑rate policy, productivity growth, and external price shocks, which could either reinforce the current upward bias or prompt a reversal.