Vanuatu PPP Conversion Factor

Vanuatu’s purchasing power parity (PPP) conversion factor stood at 114.94 in 2025, ranking 49th globally, reflecting the country’s evolving price levels relative to the U.S. dollar. The indicator has risen steadily from its historical low of 77.33 in 1990, reaching an all-time peak of 116.27 in 2023, suggesting a long-term trend of increasing domestic price levels. This trajectory contrasts with peer economies such as Jamaica, which recorded a lower PPP conversion factor of 99.30, and Sri Lanka at 100.52, indicating comparatively lower price levels in those nations. Over the 36-year coverage period, Vanuatu’s rising PPP values point to persistent inflationary pressures and structural shifts in its cost structure, possibly influenced by import dependency and limited local production capacity. The convergence toward higher parity values mirrors broader macroeconomic trends in small island developing states facing external shocks and supply chain constraints. Should inflation stabilize and domestic productivity improve, the PPP conversion factor may plateau or moderate in the coming years, contingent on fiscal policy effectiveness and external trade dynamics.