With 16% year on year inflation (heading towards 20%), growth, even 5-6 % one, will be wiped out and,thus,nonexistent in GDP numbers.
Well the chart is showing real growth, thats the total (nominal) growth minus inflation.
i.e something like nominal growth = 25% ....inflation = 20%....real growth = 5%.
Nominal growth is almost never compared between countries, as its pretty useless number given varying inflation in it.
2021 and above is projection. Constant Price GDP is the real growth.
@Nilgiri can you confirm that.....
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Yup
@Indos ....constant price GDP growth (from a reference year) is indeed real growth since constant price specifically subtracts inflation (accrued since the reference year).
Then it applies the exchange rate of that reference year if you want to change it to USD etc.
Essentially it is making a (good IMO) argument that underlying/effective incomes/consumption/production level in a country is more governed by the inflation index than the exchange rate index (which is the effective argument current dollars makes).
But it is good to have both numbers to see different kind of economies sensitivity (to both) anyway.
Thanks for the link, quite interesting and it reenforces what I've said . If the numbers in your link proove to be true for the 2021 2030 period it will be an unmitigated disaster for Turkey....imagine the Turkish economy only being barely 2xRomania in 2030 when they were x4.5 just 10-12 years ago.
These are projections, we have to see how they go. But 2010 - 2020 has inflicted lot of long term problem in Turkish economy that likely will take its protracted effect this decade.
They will need a better administration ASAP in this decade to sort out for 2030 onwards.
Your welcome. That (2021 above) is the projection, I think they are also seeing Turkish Lira trend data which is not really good, and it is affecting the nominal GDP projection as well. To see the real picture we also should look on GDP with PPP basis where it is the purchasing power version.
Yes PPP is good (and probably best), constant dollar is also very good when talking about projection....as these both gauge the realisation of underlying potential and fundamentals in the economy (and hard trends governing these like energy use, productivity improvement and hard asset quantity/availability etc).
Current dollar is garbage to use as projection (you cant really project inflation and exchange rates for that long time period), it is just a number that charts year by year in real time basically.
