Climb in purchasing power
Posted by meb at April 13th, 2008
Turkey has climbed to 15th place in the global purchasing power parity league, the International Monetary Fund (IMF) has revealed.
Turkey, which will reach $941.58 billion in gross domestic product according to purchasing power parity (GDP-PPP) this year with the revision of national income calculations, has climbed up four ranks among the world’s largest economies, the IMF announced on its Web site.
Turkey adopted European Union standards in its calculation method, introducing a new series with 1998 as the base year, the IMF noted in its report, which includes predictions for the term between 2006 and 2013. The new series resulted in almost one third of added growth in national income figures.
Turkey was expected to rank 19th with its GDP-PPP worth $773.7 billion according to the former series, the IMF had predicted.There will not be a change in terms of GDP-PPP this year in the positions of the top five countries, including the United States, China, Japan, India and Germany, according to IMF data.
In terms of per capita GDP-PPP, Turkey will exceed $13,511 this year, ranking 60th just after Malaysia. With $84,833, Qatar is expected to snatch the title of the world’s richest country from Luxembourg, which may rank second with $83,456, according to IMF calculations. Norway stands in third place with $55,452.
The upcoming period:
Indonesia, which currently ranks 16th in GDP-PPP, will surpass Turkey by 2011, according to IMF predictions. Indonesia and Turkey will reach $1.16 trillion and $1.15 trillion respectively by 2011. Turkey will increase its GDP-PPP at current prices by 6.85 percent on average each year between 2008 and 2013. In order not to be surpassed by Indonesia, Turkey would have to increase the figure to 7.8 percent in current terms.
Turkey’s GDP in current terms will rise from $748.30 billion to $952.70 billion in the 2008-2013 period, while its per capita GDP is expected to increase from $10,738 to $12,911. Turkey will keep its position in 17th place in terms of total GDP. However, the country will fall two ranks to number 57 in per capita income. Turkey’s per capita income, which stood at $9,629 in 2007, will reach $10,738 this year, exceeding the $10,000 mark for the first time, according to the IMF.
The purchasing power parity (PPP) theory uses the long-term equilibrium exchange rate of two currencies to equalize their purchasing power. It is based on the assumption that in an ideally efficient market, identical goods should have only one price.
Source: Turkish Daily News
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