Libya PPP Conversion Factor

Libya’s purchasing power parity (PPP) conversion factor has risen dramatically over the 36‑year series, moving from a trough of 0.10 in 1991 to an all‑time peak of 2.78 in 2025, the most recent year for which World Bank data are available. The 2025 figure of 2.78 places Libya at rank 112 globally, marginally below Tajikistan’s 2.75 and well above Brazil’s 2.55, while remaining lower than the 3.35 conversion factors recorded for both Guatemala and Israel. This steep upward trajectory reflects successive reforms in price controls, currency liberalisation, and the gradual reintegration of the Libyan economy into international markets after decades of sanctions and conflict. The sustained increase in the PPP conversion factor suggests that domestic consumption power is approaching levels comparable to middle‑income peers, yet the gap with higher‑ranked economies indicates room for further convergence. Continued political stability and structural reforms in fiscal policy are likely to shape whether Libya’s PPP conversion factor maintains its upward momentum or encounters a plateau.