Turkey ranked 30th out of 36 countries in purchasing power

The Statistical Institute of Turkey announced the purchasing power parity (PPP) data for 2021.

According to the PPP announced by the Statistical Office of the European Union, while the value of the gross domestic product (GDP) index per capita was 100 units on average for 27 European Union (EU) countries, it was 63 units for Turkey and remained 37 percent below the EU average.

Comparisons, 27 EU member states, 3 European Free Trade Association (EFTA) countries (Switzerland, Iceland and Norway), 5 candidate countries and (Turkey, North Macedonia, Montenegro, Serbia and Albania), 1 candidate country potential (Bosnia-Herzegovina) covered.

Among the 36 countries in question, the country with the highest PPP GDP per capita index was Luxembourg with 268, and the lowest country was Albania with 32. On the GDP per capita index, Luxembourg was 168% above the EU average and Albania 68% below.

CURRENT INDIVIDUAL CONSUMPTION IS 31 PERCENT BELOW IN THE EU

Although GDP per capita is taken as the basis for comparing the levels of development of countries, actual rates of individual consumption per capita are accepted as a more appropriate indicator when comparing the relative welfare levels of consumers.

In addition to the goods and services purchased by consumers, actual individual consumption includes services such as education and health provided by government or non-profit organizations.

While the actual level of individual consumption per capita was 100 for the 27 EU countries, it was 69 for Turkey and was 31 percent below the EU average. Among the 36 countries included in the comparisons, the country with the highest real individual consumption per capita was Luxembourg with 144, and the country with the lowest with 39 was Albania.

According to the 2021 results, Turkey’s price level index for real individual consumption was 36. This value shows that the same basket of goods and services bought for 100 euros in EU countries can be bought in Turkey for 36 euros in Turkish lira. (AA)