According to the OECD report, Turkish citizens are the most concerned about making ‘basic payments’ such as “food, housing, energy, and debt.” The top 20% income group is more worried than the bottom 20% income group. Turkey is the only exception among OECD countries in this regard.
One of the most significant consequences of inflation is the cost of living. Increasing cost of living worries citizens in many countries, with Turkey being at the forefront.
According to the Economic Cooperation and Development Organization (OECD) report, Turkish citizens are the most concerned about being able to make ‘basic payments’ such as “food, housing, energy, and debt.” 72% of the Turkish population is worried about covering expenses for food, housing, energy, and increasing debt payments. Turkey ranks first among 27 countries, with an average of 47% for all countries.
The OECD’s 2022 “Key Risks” survey resulted in the publication of a report titled “Concerns about meeting basic needs in a high-inflation environment.” One of the significant findings is that people are concerned about meeting their basic needs. What are these basic needs? The OECD has grouped them into four categories: food, housing, energy used at home, and the increasing cost of debt payments.
According to the report, 72% of the Turkish population reported being worried about being able to meet these four basic needs. Following Turkey are Chile at 67% and Mexico at 66% among the 27 countries.
The countries with the lowest levels of concern are Denmark and Switzerland (28%) and Germany (33%).
Rich in Turkey More Concerned Than the Poor The research also shows the level of concern based on income status. The income status is ranked from the lowest 20% income group to the highest 20% income group, referred to as “ordered 20% groups.”
In 26 out of the 27 countries, the percentage of people in the lowest 20% income group worried about meeting four basic needs is higher than that of the highest 20% income group.
The exception is Turkey. In Turkey, the highest 20% income group (70.7%) is more concerned than the lowest 20% income group (70.5%). The difference is only 0.2 percentage points.
The difference between the two groups in Turkey is negligible. The average difference is 13.6 percentage points in other countries, making Turkey’s situation remarkable.
After Turkey, the country with the lowest difference is Poland with 2.6 percentage points, while Israel has the highest difference with 30.2 percentage points.
According to the survey involving approximately 27,000 people from 27 countries, 9 out of 10 people are concerned about inflation and the cost of living. In October 2022, when the survey was conducted, the annual inflation in the OECD was 11%, while it was 86% in Turkey.
Concerns about Job Loss: Turkey Ranks 4th When looking at people concerned about losing their jobs or a decrease in income if they are self-employed, Turkey ranks fourth.
In Turkey, 7 out of 10 people (72%) are worried about losing their jobs or experiencing a decrease in income.
In this category, Mexico ranks first, followed by the Netherlands. The average is 51%.
The official annual inflation rate announced by TÜİK (Turkish Statistical Institute) in July 2023 was 48%. Inflation in Turkey has been rapidly increasing since the country transitioned to a new economic model in 2021.