Turkey 10th cheapest country in Europe

Published 19.06.2015 22:27

According to purchasing power parity (PPP) in 2014, Turkey has been the 10th cheapest country among 37 countries in the EU including prospective members.

The Turkish Statistical Institute (TurkStat) released a report on the PPP based on household final consumption expenditures. According to the report, the price level index of Turkey was realized at 61, which means the same goods and services worth 100 euros on average in all 28 EU member countries can be purchased for 61 euros in Turkey.

The report included member countries; the five candidate countries of Turkey, Macedonia, Montenegro, Serbia and Albania and Bosnia-Herzegovina along with the three EFTA countries (Switzerland, Iceland, Norway).

Switzerland had the highest price level index of goods and services among European countries in 2014 at 154 and the lowest price index was Macedonia's at 47. Personal transport equipment category tops the sub-groups of consumer goods and services in terms of price index with 110, a number that is above the EU average of the same sub-group by 10 percent. Alcoholic beverages and tobacco and consumer electronics were the other sub-groups with a relatively high price index of 87. On the other hand, the clothing, restaurant and hotels index was lower than other groups at 63 and 74, respectively. Price indices indicate the relative purchasing power of a domestic currency against foreign currencies. A country is regarded as relatively expensive if its price index is greater than 100 and relatively cheap if its price index is below 100.

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