We have returned to 2001 levels in global income rankings

Turkey continues to decline in the global per capita income rankings. According to IMF data, Turkey ranked 78th in the world in 2022 in terms of per capita income, one of the indicators used to measure the difference in prosperity and development between countries. According to the IMF, in 1980, Turkey ranked 55th in the world with a per capita income of 2,133 dollars.

Rising to 49th place in 1990 with a per capita income of 3,738 dollars, Turkey entered the new millennium in 67th place. During the AKP era, Turkey hovered in the 60s in the global per capita income rankings for a long time. Even in 2013, when per capita income reached its highest level, exceeding 12 thousand dollars, Turkey could only manage to place 66th. After the transition to the presidential system in 2018, Turkey's global ranking declined rapidly. From 2013 to 2021, Turkey's per capita income in dollar terms fell below 10 thousand dollars. Turkey ranked 75th in the world in 2020, 77th in 2021, and 78th in 2022.

WE WILL REMAIN STAGNANT

The last time Turkey was in 78th place in per capita income was in 2001, when a major economic crisis was experienced. Although the government aims to reduce inflation on one hand and achieve stable growth on the other, it is predicted that Turkey will remain stagnant in the global per capita income rankings. According to IMF projections, Turkey will finish this year in 69th place with a per capita income of 13,383 dollars. Although per capita income is expected to rise to 15,898 dollars in 2025 and 17,332 dollars in 2028, Turkey's global ranking will be 67th and 68th, respectively.

‘THE COLLAPSE OF THE MIDDLE CLASS BEGAN IN 2021’

Economist Dr. Mahfi Eğilmez stated in his blog post titled 'The Beginning of the Collapse of the Middle Class' that the collapse of the middle class in Turkey began in 2021, but the 'real' deterioration in income distribution occurred in 2022 and 2023. Eğilmez noted, “If we look at the transition from 2013 to 2021, the country's total average per capita income appears to have fallen from 12,495 dollars to 9,528 dollars. While there has been a decline in the highest income groups, the declines in the lowest three income groups appear to have pushed the middle-income group further down.”

News Source: 12punto