TURKSTAT – Turkey’s GDP per capita index value was 73

Purchasing power parities (PPPs) play a crucial role in economic comparisons, as they are currency conversion rates that equalize the purchasing power of different national currencies. They enable meaningful volume comparisons between countries, a key factor in understanding the GDP per capita index.

According to the preliminary results of the European Comparison Program for 2023, the gross domestic product (GDP) per capita index based on purchasing power parity in Türkiye was 73, whilst the average for 27 European Union (EU) countries was 100, and Türkiye's GDP per capita index was 27 percent below the EU average.

The comprehensive comparison included the 27 member states of the European Union, 3 European Free Trade Association (EFTA) countries, 5 candidate countries, and 1 potential candidate country. This diverse group provides a broad perspective on the economic disparities being examined.

Among 36 countries involved in the comparison, the country with the highest index of GDP per capita was Luxembourg with 239 and countries with the lowest index of GDP per capita were Albania and Bosnia and Herzegovina with 35. Luxembourg had a GDP per capita of 139 percent above the EU-27 average, whereas Albania was 65 percent below the EU-27 average.

While GDP per capita is mainly an indicator of the level of economic activity, actual individual consumption (AIC) per capita is an alternative indicator better adapted to describe the material welfare situation of households. AIC consists of goods and services actually paid for or purchased by consumers as well as provided freely by the government or by non-profit organizations (education, health care, etc.).

The AIC per capita in Türkiye was 86, whereas the average of 27 EU member countries was 100 and 14 percent below the EU average. Among the 36 countries included in the comparison, Luxembourg had the highest actual individual consumption per capita, with 138, while Albania had the lowest, with 42.

The price level index is an indicator of the purchasing power of national currencies according to currency conversion rates. Suppose a country's price level index is higher than 100. In that case, the country is considered relatively “expensive” to the average of the compared country group, and if it is lower than 100, then it is relatively “cheap” against the same compared group.

According to the preliminary results for 2023, the price level index for AIC was 38 for Türkiye. This figure represents that the same basket of goods and services purchased for 100 Euros in a total of 27 European Union countries could be bought for 38 Euros in Türkiye

SANAYİ HABER AJANSI

www.ekonomigundemi.com.tr