Analysis of Türkiye’s Macroeconomic Performance for the Period 2000–2023 with Multi–Criteria Decision Making Approach

Abstract

The main purpose of this study is to evaluate Türkiye's macroeconomic performance for the period 2000–2023. Various criteria have been determined for performance analysis and these criteria are economic growth, unemployment rate, inflation rate and current account balance. In the study, performance analysis was performed using TOPSIS and COPRAS techniques, which are multi-criteria decision-making methods, with a 24 year alternative and 4 economic indicator criteria. As a result of the analysis, the performance order of the years was determined according to TOPSIS and COPRAS techniques. It was determined that the years in which Türkiye showed the highest and lowest performance were similar in both methods. Although there were slight changes in the rankings according to the methods, the years in which Türkiye's macroeconomic performance was the highest were 2004, 2005 and 2015, and the years in which macroeconomic performance was the lowest were 2001, 2022 and 2023. In the years in which performance was higher, high economic growth and low inflation were the determinants, and in the years in which performance was lower, high inflation and current account deficit were the determinants. The large increase in inflation rates, especially in 2001, 2022 and 2023, has negatively affected economic performance. These results show that inflation has a significant impact on Türkiye's macroeconomic performance. The economic crisis experienced in Türkiye in 2001, the COVID-19 global pandemic, which continues to have economic effects in the world and in Türkiye, and the low interest rate policy implemented in Türkiye are the most important features of 2022 and 2023.