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How did Turkey sustain growth despite high inflation?
short by Pranjul Gupta / on Sunday, 21 July, 2024
Turkey's per capita wealth increased by 157% in 2023, despite a declining currency and 72% inflation. Despite real earnings remaining flat, asset values skyrocketed, especially in real estate, resulting in substantial gains in nominal wealth. This paradox emphasises the impact of exchange rate volatility as well as the difficulty of measuring wealth in high-inflation contexts.
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