Mahfi Eğilmez Evaluates the Contradiction Between Economic Growth and the Impoverishment of Citizens
Economist Mahfi Eğilmez examined the gap between growth data in Turkey and the living conditions of the public, explaining the reasons for the decline in real purchasing power.
In an published article, economist Mahfi Eğilmez addressed the contradiction between Turkey's economic growth data and the economic conditions experienced by citizens in daily life. Stating that growth does not mean an increase in social welfare, Eğilmez drew attention to production volume and price increases.
The Difference Between Growth and Welfare
Economist Mahfi Eğilmez stated in his blog post that despite the increase in national income and GDP, many people struggle to meet their basic needs.
Emphasizing that growth and social welfare increases do not mean the same thing, Eğilmez stated that production and price increases directly affect daily life.
TURKSTAT Data and Real Growth
According to TURKSTAT data, while the Turkish economy grew by 41.6 percent at current prices in 2025, real growth materialized at 3.7 percent.
Stating that the increase in monetary magnitude is not the same as the increase in production volume, Eğilmez noted that even though nominal incomes increased, prices rose faster.
Inflation and Purchasing Power
It was stated that when a person's income increases by 30 percent while their expenses rise by 50 percent, their real purchasing power declines.
It was emphasized that citizens who allocate the majority of their income to rent, food, energy, and transportation are affected more by price increases in basic needs.
Income Distribution and Dollar-Denominated Income
Although the faster rise of nominal GDP in Turkish Liras compared to the exchange rate allowed national income to grow in dollar terms, it does not show real production by itself.
It was stated that GDP does not reflect the distribution of income among segments of society, and wages lagging behind price increases weaken economic security.