Turkey has emerged as the most unequal country in Europe in terms of income distribution.

The troubling conclusion is reached by a new report released by trade union confederation DISK/Genel-Is. The study highlights deepening social and economic divides, with millions struggling to meet basic needs despite the official figures showing growth.

The report cites Eurostat data showing Turkey’s Gini coefficient at 0.461, far above the European Union average of 0.344. No other European country records such a high level of inequality, said the study.

The Gini coefficient is a statistical measure of the inequality of a distribution. It is most commonly used to represent income, wealth or consumption. It ranges from 0 to 1 (or 0 to 100), where 0 signifies perfect equality (everyone has the same income) and 1 signifies perfect inequality.

The findings in the report suggest that while the economy continues to expand on paper, the benefits are not reaching large segments of society.

Turkish GDP growth officially accelerated from 2.3% y/y in 1Q to 4.8% y/y in 2Q. 

According to the study, two out of every 10 people in Turkey live in poverty, while six in 10 are in debt. The minimum wage, set at Turkish lira (TRY) 22,104 ($530), falls short of the official hunger threshold of TRY 26,149, underscoring the erosion of purchasing power.

Per capita income stands at $15,463, less than half the European average of $36,590, placing Turkey at the bottom of the continent by this measure.

The report also points to a shrinking share of labour in national income, rising household indebtedness and a widening gap between the rich and poor. The wealthiest 20% of the population earn nearly nine times more than the poorest 20%.

Only 39% of the population is not in debt, while 12.5% of people are struggling greatly to repay their debts. For 43.3% of the population, debts represent a moderate burden, whereas for 5.2% they pose no burden at all, according to the study.

Union officials argue that the current trajectory risks not only worsening economic hardship but also the fuelling of broader social and political instability. They are calling for urgent reforms, including fairer taxation, stronger public services and wage policies that ensure workers receive a just share of the value they create.