First: Let us tell you, how do you know whether the country's economy is classified as a strong economy or not?
Have you heard about the Kuwaiti, Bahraini, or Jordanian dinar (Dinar = the local currency)?
The local currency of these countries is stronger and more expensive in terms of its purchasing value against the US dollar, for example, each 1 KWD = 3.3 USD, and also its value is superior to the local Turkish currency, the lira, however when we want to ask about the output of the national domestic production for each of the Bahrain, Kuwait, and Jordan We find that the total GDP of the three countries is much smaller than the Turkish national GDP, which is equivalent to $720 billion annually. In comparison, the total of the three countries does not reach $217 billion annually.
In this sense, Turkey is economically more robust than the mentioned countries combined, and based on this principle, America is the most powerful country in the world economically, with a national GDP of 21 trillion dollars annually, and this means that the American economy is thirty times stronger than the Turkish economy.
But is this economic indicator considered 100% correct?
The GDP economic indicator, which depends on measuring the national domestic product of a country, has been considered a deliberate index since the late nineties of the last century. however, this indicator does not take into account the rise in the value of the local currency against the dollar, the standard of living and luxury, or the average annual income per capita
To explain the idea further, we will give you an example:
China, one of the most powerful economies globally, is deliberately and constantly devaluing its local currency against the US dollar to reduce imports to China and raise the value of its exports to all countries of the world.
The local currency for the economies of industrialized nations depends on the export of the local product to support the state budget, like Japan, South Korea, China, and Turkey. Thus, the local currency depreciation is beneficial in some cases.
In contrast to the national GDP index, which is not an entirely correct measure of the economic power of countries, the trade balance of nations is one of the essential criteria that show the strength and solidity of the economy and even the politics of countries around the world.
And based on the definition of the scale of the trade balance of countries, which depends on raising the national exports of the country to achieve parity, balance, and stability for governments, but sometimes some countries enter into what is known as the national budget deficit, which often occurs as a result of the increase in state expenditures on what it produces locally.
Economically incapable countries mostly don't have this issue in that it doubles their cash reserves or borrows from the World Bank or neighboring countries.
But suppose we want to return to the Turkish exampl e, In that case, we see that Turkey is one of the paramount countries within the Group of 20, which includes the 20 most powerful economies in the world, with an order that increases in strength and progress annually, with 0 debt to each of the International Monetary Bank or any neighboring country, in addition to that Turkish government is working to end all the debts of the private sector and the joint industry to European banks, by distributing government financial grants, provided that these companies transfer their future financial assets to the local Turkish lira, and enhance their exports to the countries of the world.
But returning to the discussion of economic indicators, we see that some scientists and financial experts have suggested that the low unemployment rate is evidence of the strength of the economy, but what if the rate of income of working individuals is not equivalent to the value of living in the country as a result of the high value of production in the first place, and therefore based on several global economic indicators We find that a single indicator cannot determine whether a particular country is economically strong or not, nor does it even rank this country in terms of welfare or savings, which is considered an indicator of global economic strength.
More economic indicators that show the extent of the strength of the countries' economy:
And speaking of other economic indicators that show the extent of the strength of the countries' economy, it is the measure of per capita income that we mentioned earlier, which depends on the size of the annual per capita income and net profit without the paid taxes value to the government, we find again that Turkey is an economically strong country. However, after the rational, mathematical comparison, we find that the per capita income in Kuwait annually is equivalent to 33,000 dollars. In contrast, in Bahrain, 20 thousand dollars, Jordan, 3 thousand dollars, and in Turkey, it equals 9 thousand US dollars. As a result of this comparison, again, we will find that the share of the Kuwaiti citizen is greater than the Turkish. However, the Turkish economy is more robust. From the economy of Kuwait, Bahrain, and Jordan together, which means logically that the economic indicators do not necessarily mean their validity, especially when we analyze them on the analytical, logical bases ground, we find that they are useless or true.
Eventually, we recommend you to read more about another economic aspect of the Turkish economy, such as the exports, taxation system, types, value of the real estate investment in Turkey, because we are sure that you will find uncountable empirical surprising facts that improve and illustrate the importance of the Turkish economy.
But also we'll be waiting for your call if you are interested in inquiring more financial facts, our experts will make sure to give you all the knowledge you deserve to know.