Comparative Economic Study Report

Running head: COMPARATIVE ECONOMIC STUDY BETWEEN GERMANY AND
TURKEY
Comparative Economic Study between Germany and Turkey
Name of the Student
Programme Title
Tutor’s Name
Word Count: 1959

COMPARATIVE ECONOMIC STUDY BETWEEN GERMANY AND TURKEY1
Table of Contents
1. Introduction..................................................................................................................................2
2. Economic growth.........................................................................................................................2
3. Standards of living.......................................................................................................................4
4. Comparisons of economic growth and standards of living.........................................................6
5. Contribution of economic growth to improve living standards...................................................7
6. Conclusions and Recommendations............................................................................................8
Reference.......................................................................................................................................10

COMPARATIVE ECONOMIC STUDY BETWEEN GERMANY AND TURKEY2
1. Introduction
The report finds the relation between economic growth and standard of living and thereby
answer how effectively does economic growth contributes to the standard of living of a country.
In order to make the study tow countries have been chosen and they are Germany and Turkey.
These two countries have been chosen because both the countries are developed with high gross
domestic product (GDP) signifying that both are economically strong. Both the countries have
high Human Development Index (HDI) indicating good standard of living. However, other
measures that the report discusses to compare the standard of living of the selected countries.
The other measures are income inequality, GDP per capita, population living below poverty line,
inequality adjusted HDI, unemployment figures, UN’s multidimensional poverty index (MPI)
and social progress index (SPI). Therefore, the report firstly discusses about the economic
growth of both the countries by analyzing the data of GDP growth and emphasizing on the
drivers of economic growth of the countries. Then the report moves to the analysis of standard of
living of both the countries by looking at the measures mentioned above. Hence, by comparing
the economic growth and standard of living the report finds the implication of economic growth
on the standard of living of the countries.
2. Economic growth
Germany
Germany is a developed country and it is known from the theory of economics that in
case of developed country the GDP growth rate remains low in comparison to developing or
emerging economies. However, the GDP growth rate remains comparatively steady. From figure
1, it can be seen that the GDP growth rate of the country during the initial phase of the last

COMPARATIVE ECONOMIC STUDY BETWEEN GERMANY AND TURKEY3
decade, that is from 2008 to 2011 has shown some fluctuation. In the latter phase the GDP
growth rate has been quite steady and the especially from 2014 to 2018. During the period of
global financial crisis the GDP growth rate had fallen drastically showing that the county was hit
severely by the crisis (Bartz and Winkler 2016). Due to this the GDP growth rate of the country
fell below -5% in 2009. However, with the help of the growing sectors of eh economy of the
country it was possible to pull the country out of this critical condition. The sectors that drives
the economic growth of the country are service and manufacturing sector. The service sector
contributed 69.3 % to the GDP of the country whereas manufacturing sector contributed 24.2 %
to the GDP in 2019. From data, it is evident that the service sector has always been the key
economic driver of the country with more 60% contribution to the GDP of the country.
Therefore, from the
discussion it can be said
that the country has
successfully
recovered from the effect
of global financial crisis.
Figure 1: GDP growth rate in Germany
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
Germany
Year
GDP growth rate (%)