Turkey’s gross domestic product (GDP) index value per capita according to “Purchasing Power Parity” (PPP) was determined as 72 for last year.
Turkish Statistical Institute announced “Purchasing Power Parity” data for 2023.
PPP is defined as the price ratio of a standard basket of goods and services defined in detail in different countries. Thus, price level differences between countries are eliminated and real price and volume comparisons can be made internationally.
According to the SGP announced by the European Union Statistical Office (Eurostat), the per capita GDP index value was 100 units on average for 27 European Union (EU) countries, while it was 72 units for Turkey and remained 28 percent below the EU average.
The comparisons covered 27 EU member states, 3 European Free Trade Association (EFTA) countries (Switzerland, Iceland and Norway), 6 candidate countries (Turkey, North Macedonia, Montenegro, Serbia, Albania and Bosnia and Herzegovina).
Among the 36 countries in question, the country with the highest per capita GDP index according to SGP was Luxembourg with 237, and the lowest country was Albania and Bosnia-Herzegovina with 36. In the GDP per capita index, Luxembourg was 137 percent above the EU average, while Albania and Bosnia and Herzegovina were 64 percent below.
TURKEY’S ACTUAL INDIVIDUAL CONSUMPTION LEVEL WAS DETERMINED AS 84
While GDP per capita is used as a basis for comparing the development levels of countries, actual individual consumption indexes per capita are considered 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 also includes services such as education and health provided by the government or non-profit organizations.
While the actual individual consumption level per capita was 100 for the 27 EU countries, it was 84 for Türkiye and remained 16 percent below the EU average. Among the 36 countries included in the comparisons, the country with the highest actual individual consumption value per capita was recorded as Luxembourg with 136, and the lowest country was recorded as Albania with 41.
A 100 EUR BASKET IN THE EU FILLS 39 EUROS IN TURKEY
The price level index shows the comparative purchasing power of countries’ national currencies according to their exchange rates. If the price level index of a country is greater than 100, this country is considered “expensive” compared to the average of the country group it is compared to, and if it is less than 100, this country is considered “cheap” compared to the average of the country group it is compared to.
Turkey’s price level index for actual individual consumption was 39 according to the results of 2023. This value showed that the same basket of goods and services purchased for 100 euros across EU countries could be purchased with Turkish lira for 39 euros in Turkey.
On the other hand, the data published by Eurostat are calculated within the scope of the European Comparison Program studies carried out jointly by this institution and the OECD.
