As Türkiye rises to become the 12th largest economy globally by purchasing power parity (PPP) with a GDP of $3.5 trillion in 2024, the nation finds itself at a pivotal crossroads.

While macroeconomic indicators highlight Türkiye’s undeniable strength and strategic importance, the realities of high inflation and affordability challenges remain significant concerns for its citizens. This duality—of robust global standing versus local struggles—defines Türkiye’s economic narrative and its path forward.

Türkiye vs. Greece: A Tale of Two Economies

Türkiye’s position as the 12th largest economy globally by PPP starkly contrasts with that of Greece, whose GDP (PPP) is forecasted at $450 billion for 2024. Historically, Greece has faced economic stagnation due to chronic debt crises and dependency on EU bailouts, while Türkiye has outpaced its neighbor through industrial diversification, export-driven growth, and strategic geopolitical positioning.

Looking ahead to 2025, Türkiye’s economy is projected to grow to $3.8 trillion (PPP), driven by thriving industries such as defense, technology, and energy. In contrast, Greece’s GDP (PPP) is expected to see modest growth, barely surpassing $470 billion. These figures underscore Türkiye’s superior economic momentum and its ability to weather global uncertainties more effectively than Greece.

Strength on the Global Stage

Türkiye’s rise as a global economic force is underpinned by its active participation in organizations like the Organization of Turkic States (OTS) and its investments in energy infrastructure. Through the Trans-Anatolian Natural Gas Pipeline (TANAP) and the discovery of gas reserves in the Black Sea, Türkiye is reducing its reliance on costly energy imports and positioning itself as an energy hub between Europe and Asia.

Additionally, Türkiye’s diversified global partnerships—spanning Asia, the Middle East, and Africa—have bolstered its economic resilience. Unlike Greece, which remains heavily dependent on the European Union, Türkiye has established a more autonomous and adaptable economic strategy. 

This independence allows Türkiye to pivot swiftly in response to global challenges, leveraging its natural resources, industrial capacity, and youthful workforce to drive growth.

Inflation: Türkiye's Primary Challenge

While Türkiye’s macroeconomic indicators are impressive, high inflation remains a pressing issue that directly impacts citizens' daily lives. Rising prices for food, energy, and housing have eroded the purchasing power of the Turkish lira, creating a disconnect between the nation’s economic achievements and the struggles faced by ordinary people.

Several factors contribute to this inflationary pressure:

1. Currency Devaluation: The lira’s depreciation against major currencies has increased the cost of imports, particularly energy.

2. Global Disruptions: Events like the pandemic and the war in Ukraine have exacerbated supply chain disruptions and energy price volatility.

3. Structural Challenges: Türkiye’s rapid urbanization and reliance on imported goods have also driven up domestic costs.

Steps Towards Stability

Despite these challenges, Türkiye is taking significant steps to address inflation and improve affordability:

1. Monetary Tightening: The Central Bank has raised interest rates, signaling a commitment to combating inflation and stabilizing the lira.

2. Energy Independence: Investments in renewable energy and domestic gas exploration aim to reduce Türkiye’s reliance on expensive imports, which will eventually lower costs for citizens.

3. Wage Increases: The government has repeatedly raised the minimum wage to help workers cope with rising prices.

4. Export-Led Growth: By focusing on high-value exports in sectors like defense, automotive, and textiles, Türkiye is increasing foreign currency reserves and reducing economic vulnerabilities.

Türkiye vs. Greece: Affordability and Living Standards

When comparing affordability, Greece also faces its share of challenges, particularly in terms of youth unemployment, high public debt, and reliance on EU subsidies. While Greece benefits from being part of the eurozone, this dependency limits its economic sovereignty. Türkiye, by contrast, has shown resilience and adaptability, weathering external shocks while pursuing long-term solutions to inflation and affordability issues.

While Türkiye’s inflation impacts citizens in the short term, its economic policies and structural investments are designed to translate macroeconomic success into tangible benefits for its population. Greece’s economy, meanwhile, remains constrained by external debts and slower industrial growth, limiting its ability to achieve similar momentum.

The EU Factor: Türkiye Already Outpaces Many EU Countries

Türkiye’s economic trajectory demonstrates that success does not hinge on European Union membership. In fact, Türkiye outpaces many EU member states in terms of GDP (PPP), with only Germany, France, and Italy ranking higher. Countries like Spain, Poland, and the Netherlands lag behind Türkiye, proving that economic strength is not dependent on being part of the EU.

Türkiye’s independence from the EU has allowed it to pursue dynamic trade relationships and avoid the bureaucratic constraints that often slow decision-making within the bloc. Meanwhile, Greece’s reliance on EU subsidies underscores its lack of economic autonomy—a stark contrast to Türkiye’s self-reliant approach.

Future Projections: A Bright Horizon

Looking to 2025 and beyond, Türkiye is poised for sustained growth:

- GDP Growth: Türkiye’s GDP (PPP) is expected to exceed $3.8 trillion, driven by continued expansion in high-tech industries, renewable energy, and infrastructure development.

- Energy Dominance: With projects like TANAP and Black Sea gas exploration, Türkiye is set to become a regional energy powerhouse.

- Global Influence: Türkiye’s leadership within organizations like the OTS and its growing trade ties with Asia and Africa position it as a key player in the global economy.

Greece, in contrast, faces slower growth, high debt burdens, and limited diversification, further cementing Türkiye’s position as the stronger and more dynamic economy in the region.

TCE Conclusion: Türkiye as a Nation on the Rise

Türkiye’s status as the 12th largest economy globally by PPP highlights its growing power and influence. While inflation presents short-term challenges, Türkiye’s long-term trajectory points to a nation that is not only surviving but thriving. Its independent economic policies, strategic alliances, and investments in energy and technology underscore a future of sustained growth and prosperity.

Unlike Greece, which remains tied to EU frameworks, Türkiye has embraced a forward-looking strategy that prioritizes innovation, trade diversification, and economic sovereignty. As global economic power shifts eastward, Türkiye is well-positioned to lead—not just as a regional powerhouse but as a global economic leader.

References

- International Monetary Fund (IMF) World Economic Outlook, December 2024 Edition.  
- World Bank Data on Türkiye's and Greece’s GDP (PPP) and future projections.  
- Visual Capitalist’s ranking of the world’s largest economies by PPP (2024).  
- Organization of Turkic States (OTS) official reports on economic cooperation.  
- European Commission’s economic forecast for Greece (2024).  
- Trading Economics: GDP and GDP per capita for Türkiye and Greece.  
- TANAP Official Reports on Energy Independence (2024).  
- Statistical data from Türkiye's Ministry of Finance and Trade.