Calculation maneuvers in national income

The government is now obliged to include official figures and also deterioration that has been ongoing in the economy for a while. Serious revisions have been made in the Medium Term Program (OVP) targets released on the weekend. 

In the income per capita figures, on the other hand, it has been observed that a change of calculation has been introduced to show the figure as higher. This year?s declining income per capita figure was attempted to be hidden by a methodological change in calculation replacing the classic calculation with purchasing power parity. However, because of the high rate of population growth, because the growth rate remained at a low figure such as 3 percent and because of the hike in foreign exchange rates, naturally, the per capita national income went down on a dollar basis. The per capita income, which has been over $10,000 for years, would have dropped down to below $9,000 if the same method of calculation was used; so, a change in the calculation method was introduced. Making this change without announcing it beforehand and not issuing the former-method figures at the same time is a serious frivolousness. It is blatantly obvious that this path has been taken because of the approaching elections. 

In the new OVP, according to the purchase power parity, this year?s GDP is $1,516 trillion and the per capita income is $19,506. If calculated with the former method, with the growth rate targeted and the foreign exchange rates, then the income per capita should drop further; according to the new method of calculation, this figure increases to $20,313 in 2016. 

As a matter of fact, the fall in the income per capita figures is a consequence, in other words, of fundamental economic equilibriums disrupted; it is a reality...

Continue reading on: