Ankara, Oct 13 () - The Turkish government has revised its national income per capita from U.S. dollar terms into income based on purchasing power parity amid a dramatic loss in the Turkish Lira’s value against the dollar in its new Medium-Term Economic Program, which was published in the Official Gazette on Oct. 11.
With the change, the government’s national income per capita target rose to $19,506 from the previous target at $10,936 upon the dollar basis formula.
If this change had not been made, the country’s national income per capita would have decreased below $9,000 over this year with a loss of around 25 percent in the lira’s value to the dollar over this year, said renowned economist Uğur Gürses in his column for daily Hürriyet on Oct. 12.
For 2016, the per capita income is expected to reach $20,313, while it is expected to rise to $21,377 in 2017 and $22,680 in 2018, according to the new program.
The country’s national income per capita rose by 37 percent in 2008 after a change in the calculation formula.
The Turkish government has also downgraded its 2015 growth forecast to 3 percent from 4 percent in the light of severe fluctuations in global markets.
Growth forecasts revised down
The growth forecast for 2016 was cut from 5 percent to 4 percent, and to 4.5 percent from 5 percent for 2017.
The program expressed concern about the U.S. Federal Reserve’s probable interest rate raise, which will pressure emerging-market economies at a time when the Turkish economy is beginning to recover.
Finance Minister Mehmet Şimşek said downgrading the GDP growth is not only the case in Turkey, in a televised interview on Oct. 12.
“The International Monetary Fund [IMF] also revised its growth forecasts for all countries. Global shocks have affected all of us. Our growth forecast is 3 percent for this year, while the Russian and Brazilian economies are shrinking. This figure is a success for Turkey amid severe shocks around,” he said during an interview with Turkish A Haber.