Purchasing power in Turkey among lowest in Europe

Turkey scored 53 on an index measuring the gross domestic product (GDP) per capita based on purchasing power parity (PPP), considerably lower than the average score of 100 across Europe, according to a report from the Turkish Statistics Institute (TurkStat) released on Wednesday that drew on data from EuroStat.
PPP measures purchasing power among different countries on a comparative basis. Turkeyand’s GDP per capita index was found to be 47 percent below the European Union average, according to the statistics.
Among the countries surveyed were the 28 EU member states, Switzerland, Iceland, Norway and five candidate countries, such as Turkey and Bosnia and Herzegovina, which is a potential candidate country. Luxembourg scored the highest at 263, 163 points higher than the average of the 28 EU member states, while Bosnia and Herzegovina scored the lowest at 28, putting it 72 percent below the EU average.
Norway, Switzerland, Ireland and the Netherlands rounded out the top five, while the only countries out of the 37 on the list below Turkey were Bulgaria, Macedonia, Montenegro, Serbia, Albania, and Bosnia and Herzegovina.
While the Turkish lira weakened in 2014, a trend that has been ongoing for the past several years, the purchasing power of consumers also took a hit due to nationwide droughts that slashed harvests and negatively impacted food prices in the market. This year the lira has plummeted, falling to as low as 2.80 to the US dollar. It has hovered around the 2.70 mark for much of the year and is considered to be the worst performing developing market currency.
Reports have circulated regularly since early 2014 detailing the high prices of various agricultural products, as negative weather conditions resumed in the winter of 2015, resulting in disappointing yields and continued headaches at the checkout counter.
The price of gasoline, vehicles, cigarettes, alcohol and other goods in Turkey is extremely high compared to neighboring countries, mainly due to heavy taxes that are levied upon these goods. In many cases, the tax is significantly greater than the wholesale cost of the good itself.

SOURCE: Today’s Zaman