Turkey closing the gap with European economies

Turkey closing the gap with European economies

The Turkish economy is growing at a faster rate than most European countries, which will help the country catch up to European economies.

March 30, 2010, Tuesday/ 17:29:00
Turkey, with the seventh-largest economy in Europe, saw its gross domestic product (GDP) valued at purchasing power parity (PPP) climb by 163.12 percent from 1992 to 2009, a rise greater than in most European countries and one expected to continue further in the years to come.

According to the International Monetary Fund’s (IMF) World Economic Outlook report dated October 2009, Turkey’s GDP valued at PPP was $188.8 million in 1985. This figure reached $330.3 billion in 1992 and rose to $869.1 billion last year, representing a 163.12 percent increase in the space of 17 years. During the same period, Spain’s GDP valued at PPP rose by 125.74 percent, while this figure was 115.08 percent for the UK, 89.64 percent for France, 81.6 percent for Russia, 71.4 percent for Germany and 66.06 percent for Italy.

The IMF expects Turkey’s GDP valued at PPP to increase further to $1.13 trillion in 2014, with its share in the overall European economy reaching 4.88 percent. The size of the Turkish economy currently amounts for 4.55 percent of the European economy overall, up from 3.4 percent in 1992.

The IMF data show that while Germany’s economy was 5.49 times the size of Turkey’s 25 years ago, this figure declined to 4.96 times in 1992. Currently Europe’s biggest economy, Germany is 3.23 times the size of the Turkish economy, and this figure is expected to decrease to 1.92 times by 2014, according to IMF forecasts.

Germany’s GDP valued at PPP was $1.04 trillion in 1985 and rose to $1.64 trillion in 1992 and $2.81 trillion in 2009. The IMF expects this figure to reach $3.29 trillion by 2014.

Accordingly, the economy of Russia, the second-largest in Europe, was 3.55 times the size of Turkey’s in 1992; this figure fell to 2.45 times last year. The IMF expects the Russian economy to reach $2.75 trillion in size in 2014, a figure which is 2.43 times the size of Turkey’s.

The economy of the UK, which rose from $696 million in 1985 to $1.01 trillion in 1992 and $2.16 trillion in 2009, is also predicted to reach $2.66 trillion by 2014. From 1985 to 1999 the gap between the British and Turkish economies fell from 3.69 times to 2.49 times in size. According to the estimates, this figure will decline to 2.35 in the next five years.

The IMF report foresaw France’s GDP valued at PPP to rise from $2.11 trillion in 2009 to $2.52 trillion in 2014, with its size compared to Turkey’s falling from the current 2.43 to 2.23 times by 2014.

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