Economic Status of Turkey
The first economic goal is stable prices. Therefore, a sustained increase in the overall level of prices is the desired goal rather than low prices. If prices continued to decrease, a downward economic spiral could be the result. In regards to inflation, Turkey is ranked 163 out of 227 countries in the world. Turkey’s 2009 inflation rate is 6.5%, which is a decrease in overall prices by 3.6% from 2008. The United States is considered to be the baseline country for making economic comparisons, is ranked 14th in the world and had an inflation rate of 3.8% in 2008, which dropped to -0.7% in 2009. The decrease in the United States’ 2009 inflation rate is slightly more than that of Turkey for 2009. However, the -0.7% inflation rate is considered to be deflation because the overall change in prices fell below 0%.
Syria, a neighboring country of Turkey, experienced a significant decrease in their inflation rate falling from 15.7% in 2008 to 3.7% in 2009. Syria’s overall prices have notably dropped by 11.9%. Russia, an import partner of Turkey, has also had a decrease in their inflation rate from 14.1% in 2008 to 11.9% in 2009 and is ranked 200th in the world. However, the decrease is slightly less than Turkey’s 2009 decrease. France, an export partner with Turkey, had a decrease in their inflation rate from 2.8% in 2008 to 0.1% in 2009, which is a decrease of 2.7%. Germany, also an export partner of Turkey, also had a decrease in their inflation rate from 2.7% in 2008 to 0.0% in 2009, which is a 2.7% decease.
Although Turkey’s rate of inflation is 6.5% for 2009, it is not a major concern because their prices are increasing at a slower rate compared to the 2008 inflation rate of 10.1%. However, if their real GDP growth continues to decrease, then inflation will become a concern because their income will not be keeping pace with inflation. Another indicator that Turkey’s rate change is not a major concern is to compare it to the other countries to determine the inflation trend. Overall, Turkey, the United States, Syria, Russia, France and Germany all experienced a decrease in their inflation rates, which is an indicator of the overall decrease in inflation rates worldwide. Thus, Turkey’s 6.5% inflation rate for 2009 indicates that overall prices have decreased in a one-year period by 3.6% meaning that more goods and services can be purchased with the country’s money.
Syria, a neighboring country of Turkey, experienced a significant decrease in their inflation rate falling from 15.7% in 2008 to 3.7% in 2009. Syria’s overall prices have notably dropped by 11.9%. Russia, an import partner of Turkey, has also had a decrease in their inflation rate from 14.1% in 2008 to 11.9% in 2009 and is ranked 200th in the world. However, the decrease is slightly less than Turkey’s 2009 decrease. France, an export partner with Turkey, had a decrease in their inflation rate from 2.8% in 2008 to 0.1% in 2009, which is a decrease of 2.7%. Germany, also an export partner of Turkey, also had a decrease in their inflation rate from 2.7% in 2008 to 0.0% in 2009, which is a 2.7% decease.
Although Turkey’s rate of inflation is 6.5% for 2009, it is not a major concern because their prices are increasing at a slower rate compared to the 2008 inflation rate of 10.1%. However, if their real GDP growth continues to decrease, then inflation will become a concern because their income will not be keeping pace with inflation. Another indicator that Turkey’s rate change is not a major concern is to compare it to the other countries to determine the inflation trend. Overall, Turkey, the United States, Syria, Russia, France and Germany all experienced a decrease in their inflation rates, which is an indicator of the overall decrease in inflation rates worldwide. Thus, Turkey’s 6.5% inflation rate for 2009 indicates that overall prices have decreased in a one-year period by 3.6% meaning that more goods and services can be purchased with the country’s money.
