Real growth and FX bridge: is your Turkish business really growing?
Split nominal lira growth into inflation, real growth and growth in the parent's currency. Built for budget reviews and board packs.
In a high-inflation economy, a Turkish subsidiary can report 35% revenue growth in lira and still be shrinking. This tool splits nominal TRY growth into what inflation explains, what real growth is left, and what the parent sees after translation into EUR or USD. Use it in budget reviews and board packs. Nothing you enter is stored.
How to read the result
- Nominal growth is what the TRY ledger shows.
- Real growth = (1 + nominal growth) ÷ (1 + inflation) − 1. Negative real growth means volume or price gains did not keep up with inflation.
- Growth in the parent's currency = (this year ÷ FX this year) ÷ (last year ÷ FX last year) − 1. It falls below real growth when the lira weakens faster than inflation, and rises above it when the lira is stable in real terms.
Which inflation and which FX rate
For revenue and costs, the annual or period average consumer price index from TurkStat (TÜİK) is the usual measure; for a 12-month comparison of year-end balances, use the year-end index. For FX, use the same rate basis your group uses for consolidation (usually the period average for income statement items). The tool contains no built-in rates, so you always work with the figures you report.
Using it in a budget
- Set targets in real terms or in the parent currency, not only in nominal TRY.
- Show the bridge in board packs: inflation effect, real growth, FX effect.
- Under IFRS, Türkiye is still treated as hyperinflationary, so restated IAS 29 figures will differ again from this simple view. See our inflation accounting guide.
For information only; not tax, legal or investment advice. Rules change, so check the official source before acting.