IP – The force that leads nations…
In times of war we are focusing more on
nations. After our country enters in Syria (Afrin district) it prepossesses me…
I am thinking about our nation’s power. What defines it? What are its leading
traits? What gives a country advantage against others? How we can compare them
is another question.
So it comes again in Gross Domestic Product
(GDP) and one of its leading actors Industrial Production (IP). Turkey is a
developing country and has its firm place by performing well despite some
questions behind its recent statistical approaches (for details you can read my
former article “Hormonal
Growth - Growth but in which direction and with what pace…”).
According to IMF’s WEO January 2018 data we can
see that Turkey is in a good position among developing economies in terms of US
dollar which could be better if Turkey didn’t have geopolitical turmoil in
recent years. Turkey’s GDP is above some EU-countries like Greece and Austria.
The graph below is a clear evidence of countries’ economic power. But the real
question here must be the wealth of the people which live in these countries.
The ranking of these countries will change if
we will analyze their per capita incomes. The graph below indicates that Turkey
is lagging behind other countries except Brazil. US is leading both graphs.
Turkey’s situation is a bit dismal. Turkey cannot distribute its economic power
into its citizens.
An important indicator of GDP is industrial
production (IP). In 2010 and 2011 the year on year increase in seasonally
adjusted IP showed huge leap especially in Turkey. But this could be an
illusion. Developing countries have more way to go up to first league. Their
base is also below developed countries. This is the main reason about their
pace being higher than other ones.
By looking closer to Turkey’s IP level we can
see an upward trend since 2005. Seasonally and calendar adjusted figure
indicates less deviation and clear path. Is it enough to generate more money
and create more job is another question to be answered.
If we examine main industrial group indices we
can differentiate between fluctuations of one main group which is Capital Goods
(CG). The goods that are used in producing other goods, rather than being
bought by consumers are included in that CG classification.
From that point of view we can draw these
conclusions:
- If we want to compare nations, one way of it could be their economies which can be listed by looking their GDPs.
- Developing countries have much way to go up to league of developed countries.
- It can be seen on per capita incomes, too.
- Since 2009 Turkey’s IP index has an upward trend which is led by CGs.
- CGs are a huge propeller of IP and in times of crisis manufacturing sites reduce their production levels which effect can been traced clearly in CG.
