Gross domestic product (GDP) is an indicator of the economic performance of countries that measures the total output of the national economy. It is calculated either annually or sometimes quarterly. The higher the GDP is, the better the national success, economic growth, and high standard of living are. That is why all countries try to increase the rate of GDP. The adjustment of inflation in output is more important than changes in the prices of goods and services in GDP measures.
The Turkish economy has been growing for a long time, as has its GDP rate. According to the OECD (the Organization for Economic Co-operation and Development), the growth of GDP in Turkey has been strong, but with vulnerabilities. The growth of Real GDP was 7.5% in the half of 2022 being one of the fastest growth rates in the OECD. The return of labour force participation to the pre-pandemic levels was influenced by favourable labour market developments. Exporters took advantage of opportunities created by the disruption of the Asian supply chain, and Turkey’s tourism sector fully recovered in 2022. Due to increased energy imports, the current account deficit has widened, and consumer prices have reached high levels. Taking into consideration inflation, the government raised the minimum wage by 30% in July, and by 50% six months later.
Turkey imports 99% of its gas and 93% of its oil, and it causes price volatility. The government took measures to shield vulnerable groups from rising energy and food prices. 4 million households receive energy assistance and the electricity prices for low-consumption households were cut. Besides, other measures have been introduced as well, including tax cuts on energy, the abolition of some electricity fees, and other steps.
According to the latest reports, the GDP rate of Turkey expanded by 3.853% YoY and reached 237.833 USD in September 2022.
Turkey is one of the largest economies in the world currently being at rank 19. The economic freedom score of Turkey is 56.9, and it is the 107th freest in the 2022 Index.
On February 6, 2023, twin earthquakes with magnitudes 7.8 and 7.6 hit Turkey badly affecting about 13 million people, making them homeless, and killing more than 35.000 citizens. The earthquakes destroyed thousands of buildings that cost about $84.1 billion, or 10% of the country’s GDP, a Turkish business group said.
The Turkish Enterprise and Business Confederation reported the estimated damage of about $70.75 billion of the financial damage to be housing loss, $10.4 billion loss in national income, and $2.91 billion in lost working days.
But Turkey is a powerful country that has managed a lot of difficulties in its history, and we are certain it shall recover after these disasters. International organizations and states send humanitarian assistance and financial aid to Turkey.
The Turkish people from 7 to 77 have united under one flag for the same goal, to heal the wounds of the Turkish people and the country. A strong state and people shall be able to manage all difficulties and rebuild the destroyed cities as well.
We are certain Turkey and its people shall overcome these difficulties and stand on their feet very soon, and recover the economy, education, and all other fields affected by the massive earthquakes, as the Turkish state and its people have already united as a single whole.