Kiribati PPP Conversion Factor

Kiribati’s purchasing power parity (PPP) conversion factor has risen from a trough of 0.52 in 1990 to an all‑time peak of 1.00 in 2003, before settling at 0.93 in 2025, placing the nation at 149th globally. The 2025 figure matches Fiji’s conversion factor of 0.93 and is only slightly below the Marshall Islands at 0.92, indicating that Kiribati’s price level relative to the U.S. dollar is comparable to its Pacific neighbours. The steep climb during the 1990s and early 2000s reflects substantial improvements in domestic price stability and increased integration with international markets, while the modest decline from the 2003 peak suggests a modest re‑balancing of relative costs. Over the 36‑year coverage period, the factor has remained under the 1.00 benchmark, implying that goods and services in Kiribati continue to be priced lower than in the United States. If structural reforms sustain growth and enhance productivity, the PPP conversion factor may edge closer to parity, further narrowing the price gap with higher‑ranking economies.