New IMF data: Turkey crossed $2 trillion mark in PPP (now 13th largest in the world)

[Jlaw]

Looks like for PPP, interesting facts:-

Pakistan adding 50 billion dollar every year
Turkey adding 250 billion dollar every year
India adding 1000 billion dollar ever year
China adding 2000 billion dollar every year

China do not use PPP for GDP so no point bringing that up. Only Indians are fascinated with PPP.

 

[KediKesenFare3]

Maybe you can tell us how the IMF calculates its GDP, but I'm sure that they cant do without the numbers from Turkey and the methodology in Turkey has been changed (http://www.reuters.com/article/us-turkey-economy-idUSKBN1411IR). If they do so please enlighten me, because I dont think they have access to all the necessary statistics from every single country in the world.

There are of course international standards for GDP measurements and calculations. But the gov't changed the unemployment statistics estimation methodology to lower the official figure. They did this in order to adopt EU laws. Fun fact: TurkStat's methodology was much more specific than EuroStat's. Our unemployment rate fell because of EU standards.

But every change is public and needs a proper explanation. However, the latest GDP and GDP PPP figures aren't influenced by the Turkish gov't at all. In fact, they're simply estimations made by IMF staff based on previous data.

https://www.imf.org/external/pubs/f...s=.&br=1&c=186&s=NGDPD,NGDPDPC,PPPPC&grp=0&a=

As I said before, Turkey is somewhere between Romania and Russia. This is a fair estimation without a doubt.

It is also true that the gov't played with the methodology. Funny thing is that our data are now closer to actual IMF figures. So, what the gov't did was totally in line with international standards regarding GDP measurement calculations. The problem here is that we reduced our own standards to make our economy look better.

Even Japan did the exact same thing: http://www.reuters.com/article/us-japan-economy-gdp-abe-idUSKBN13X09M

 

[That Guy]

Not to be taken to serious.

This! Both Nominal and PPP GDP alone, are not enough to show an economy's health; heck, even together, they can be wildly misleading.

 

[what]

As anyone with a bit of knowledge of economics knows: real gdp and real gdp per capita thats what counts.

 

[KediKesenFare3]

This! Both Nominal and PPP GDP alone, are not enough to show an economy's health; heck, even together, they can be wildly misleading.

Totally right, look at Indonesia. It's ranked 7th (UK ranked 9th): https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

 

[Mr.Nair]

india will have to be growing at 12% to 15% every year to be adding $1 trillion per year

You are as delusional and gullible as majority of your countrymen who lack basic toilets and food supplies

Lol instead of bluff from your side, just look at the approx figures in GDP.Don't force me to open toilet/terrorism chapters in pakistan please....

Inda is clearly growing approx 20 times in GDP(PPP) than pakistan, whether you like it or not.......

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

New IMF figures 2017

China estimates 6.6 in 2017 and 6.2 in 2018(downward trend)

India estimates 7.2 in 2017 and 7.7 in 2018(upward trend)

US estimates 2.3 in 2017 and 2.5 in 2018(upward trend)

Euro areas estimates 1.7 in 2017 and 1.6 in 2018(downward trend)

Russia remains stable at 1.4

Japan also on downward trend.......

@H!TchHiker @Fledgingwings @EgyptianAmerican @Shajida Khan @!eon @Areesh @Thorough Pro @MastanKhan @Zibago @SecularNationalist @Moonlight @Sheikh Rauf @HAKIKAT

 

[Shajida Khan]

You know very well that I consider PPP measurement just as a feel good one with no real value in monetary terms like the nominal one so I don t understand why you tagged me.

I always wonder why you people scoff at GDP PPP. Here is what IMF says about GDP PPP

http://www.imf.org/external/pubs/ft/fandd/basics/gdp.htm

Any internationally traded commodity or service is best compared in GDP nominal. IMHO, most of the economy of countries tend to be internal and infact most of the population tends to buy goods and services which are produced locally. Hence, for most parts GDP PPP makes more sense. Think in this way -- Does it really matter if Potatoes come from US or India? If you are eating potatoes to fill your belly, anyone will do. BTW, locally produced potatoes in India are INR 10-20 per KG in wholesale while those in US tends to be USD 0.5-0.7 (INR 30 - INR 45) per KG in wholesale. Same is with Haircut or a visit to a doctor. The basic rule of thumb I follow is if your economy is very much dependent on import/export of items then nominal GDP makes more sense otherwise GDP PPP is better choice.

 

[SouI]

You can medle a lot with how you calculate your GDP. I dont think there is a international standard for GDP calculation.

FDI+Exports+Government Consumption+Local Consumption-Imports=GDP

The thing is our currency has lost so much value, eliminating a bit chunk of the imports, which itself led to an increase in local consumption. It also increased our export competitiveness.

And value loss in currencies generally leads to higher PPP/Nominal ratios.

Mind you it was about 2x, now it is almost 3x. That is a huge jump.

All these together inflated our PPP GDP a lot so I assume the numbers are correct.

 

[UKBengali]

Turkey is doing surprisingly well, considering the chaos on their doorstep in Syria. If I were Turkey I would wash my hands of Syria completely.

Also, PPP is a very flawed measure, according to the PPP data, China is the largest economy in the world, which is clearly not correct.

Why you say that?

China is No 1 is a lot of areas like energy consumption, car production, food production etc. It by all accounts the richest country on the planet right now.

For China PPP is more relevant as it can produce nearly everything by itself. For example it will produce Type-055 cruisers for less than 1 billion US dollars whereas the US will need to pay 1.5 billion for the same capability.

 

[Shajida Khan]

Also, PPP is a very flawed measure, according to the PPP data, China is the largest economy in the world, which is clearly not correct.

PPP is flawed but nominal is even more flawed. In real world you do not have perfect measure but you choose measure which fits the bill. And yes, China is the largest economy in the world because it produces, consumes and exports the biggest amount of goods and services -- which is what economies are all about not some fiat piece of paper which is what nominal GDP measures. That said, when you are comparing with USA, you will also need to look at their population which is where China stops ranking number one. So, you have to make your economy even larger to be comparable to USA simply because you have more people.

My take is that I will go with what data suggests me and will not try to prove a point using data. Data suggests China is larger economy than US because it hold much higher purchasing power compared to USA, not on a per person basis but as a country.

 

[what]

FDI+Exports+Government Consumption+Local Consumption-Imports=GDP

The thing is our currency has lost so much value, eliminating a bit chunk of the imports, which itself led to an increase in local consumption. It also increased our export competitiveness.

And value loss in currencies generally leads to higher PPP/Nominal ratios.

Mind you it was about 2x, now it is almost 3x. That is a huge jump.

All these together inflated our PPP GDP a lot so I assume the numbers are correct.

I know how the GDP is calculated in general, but as I said some countries add rather odd things like estimated drug consumption etc and inflate their GDPs.

 

[Fledgingwings]

Turkey Sure is making its way towards progress.May Almighty Bless them More.

 

[Saithan]

I guess the most important lesson to be learned from what everyone says is, being satisfied will lead to laziness, and many of you have pointed out the flaws. I guess the only thing we can do is keep improving and see where it leads us, and only look back when there is nothing else to do and see if every economic princip applied tells us we're among the best in the world (top 10).

Politicians are politicians they need to sell themselves to the public, so it's not strange to "change" accounting princips and transparency in order to sell a lie. only if there is transparency can we tell if it's a lie or not.

 

[Beno]

The interesting thing is that with 25,000 USD in GDP PPP the average Turk is nearly as rich as the average Greek, according to the IMF Greece's GDP PPP is 26,500. So within 2-3 years we might actually see the average Turk being richer than the average Greek.

Kinda sad to see that the EU austerity measures have managed to hurt the Greek economy so much.

 

[Malik Alashter]

The question is how much imported goods in any country vs domestically produced goods

the more imported once the more ppp gets low the less imported the higher ppp gets

for instance an iphone cost the same as it cost in the USA or galaxy or huawei

ppp works good for countries produce more than it import.