December 02, 2008

IMF predicts Turkey to become world\'s 15th largest economy

The latest forecast in the World Economic Outlook of the International Monetary Fund has revealed that, with the adoption of revised national accounts using improved methods of calculation, Turkey's gross domestic product in terms of purchasing power parity will climb to USD 941.6 billion as of the end of 2008.

IMF has published its predictions on countries for the 2006 to 2013 period in its World Economic Outlook, assessing Turkey with its new figures, which the Turkish Statistics Institute updated in accordance with a new basis year. Turkey had been calculating its national accounts by taking 1987 as the basis year, following UN procedures. However, it recently switched to using 1998 figures as the basis for calculations and adopted the methodologies of the EU. This change in method caused the GDP of the country to grow by one-third on paper. Turkey is currently accepted as the 19th largest economy in the world.

This change in methodology does not create real growth in the economy, but it does include parts of the economies that previously existed but were not taken into consideration in GDP calculations. Calculations performed by the Anatolia news agency on the IMF predictions for world economies show that Turkey would remain in 19th place with USD 773.7 billion if it had not changed its system.

Turkey's gross national product, on the other hand, is expected to be USD 748.3 billion for 2008, and this figure will keep it in 17th place among the world's largest economies in terms of GNP.

Although Turkey is among the leading economies in terms of the aggregate size of its economy, it is located somewhere in the middle in terms of the per capita gross domestic product in terms of purchasing power parity. Turkey will be 60th after Malaysia with its USD 13,511 per capita GDP.

The figures obtained from the IMF report also indicate that the world's wealthiest people will be living in Qatar, where the per capita gross domestic product in terms of purchasing power parity will be USD 84,833 by the end of 2008. It will be followed by Luxembourg with USD 83,456 and Norway with USD 55,452.

Another striking prediction from the IMF is that India will pass Japan by 2013 if it can maintain its current pace of development. Brazil will become the eighth largest economy in 2013, surpassing France, and Mexico will rise to first place by overtaking Spain. South Korea will replace Canada to become the 13th largest economy. The Netherlands is expected to drop out of the top 20 league this year, but Poland, currently 21st, will enter this group for the first time.