Turkey ranked 21st of 156 countries on World Misery Index for 2020, which is calculated based on economic indicators such as unemployment, inflation, interest rate, and national income. According to the index, compiled by economist Steve H. Hanke of Johns Hopkins University, Turkey also ranks first among European nations in terms of poverty.
The poorest country in the world, according to the index, is Venezuela, while the country with the best economic indicators is its neighbor, Guyana. According to Euronews Turkish, which reported on the index, the ranking is determined by adding together unemployment, inflation, and bank loan interest rates in a country, then subtracting real GDP growth per capita.
According to Hanke, a rise in unemployment indicates a rise in the number of people without income, while a rise in inflation indicates a rise in the cost of living. The two combined indicate economic despair.
In Venezuela, at the top of the index, inflation in 2020 was calculated as 3,713%, the interest rate was 37%, unemployment was at 50.3% and economic contraction (negative GDP growth) was 30.9 percent. Venezuela’s score was approximately seven times higher than that of the second-place country, Zimbabwe.
At the opposite end of the list, Guyana, Taiwan, Qatar, and Japan scored the lowest in terms of poverty indicators, indicating economic health in these countries.
This year, Turkey ranked first in terms of poverty among European nations and lagged behind some countries in Africa and the Middle East. Turkey’s only neighbor worse off on the list is Iran, which ranks eighth. It is worth noting that this list was compiled last year, before Turkey’s inflation rate and the Turkish lira’s value against the dollar both hit record highs - this week, the lira hit above 9 against the dollar.
Last year, Turkey ranked 5th of 95 countries on the index.