Turkish economy: Timely reporting and analysis of economic developments in Turkey with all its structural problems, as one of world’s 20 biggest economies
Consumer inflation in March was announced as 61.1 percent. Thus, we went back twenty years. The last time inflation was above this level was in March 2002: 65.1 percent. Nonetheless, there was a significant dissimilarity. At that time, the “Transition to a Strong Economy Program” was being implemented. The inflation, which had peaked at 73.2
Treasury and Finance Minister Nureddin Nebati stated that Turkey’s inflation is high and “a problem”, adding that currency fluctuation has been taken under control as the high growth rate reflected employment positively. “Inflation is around 60 percent right now. Is this a problem? Yes it is a problem. But we managed to take (Turkish economy)
As the cost of living increases, Turkey’s government took measures such as VAT reductions. Nonetheless, inflation cannot be reduced with tax cuts unless the reasons that escalate it are eliminated. Early this week, the VAT rates on some basic goods were reduced from 18 percent to 8 percent. A similar practice was applied for some
The Monetary Policy Committee will convene on March 17 and announce its decision. You might smirk when you read the word “decision.” As a former Central Banker, I cannot stand to write otherwise. In fact, I had had no intention to write an article for today. This morning, I sat in front of my computer
As Turkey gained diplomatic momentum from Russia’s war on Ukraine, President Tayyip Erdoğan is fully aware of his political and economic priorities. He can take two basic steps to leverage Turkey’s diplomatic prominence to its economic advantage and even translate it into votes in upcoming elections. For instance, he may allow the CBRT committee to
As announced last week, the growth rate of Turkey was 11 percent in 2021. It is too high. So, is it sustainable? At which level could 2022 growth be? What are the risks that can create headwinds? Potential growth It is critical to pay attention to two different concepts related to growth. The first is
Stars are falling once the glitter wears off. The ruling Justice and Development Party (AKP) deputy chairman and former Prime Minister Binali Yıldırm was giving an exclusive interview to CNN Türk TV host Ahmet Hakan last night on February 16, inevitably answering questions concerning electricity price hikes which caused a nation-wide outcry. Turkey’s political arena
In the aftermath of the 2001 economic crisis, Ayşe Buğra writes, “I think that Turkish society welcomed the February 2001 crisis very softly.” Many people in Turkey lost their jobs, and even when they kept them, they lost a significant percentage of their earnings because of the unprecedented depreciation of the Turkish Lira. Yet they
Turkey’s main opposition Republican People’s Party (CHP) leader Kemal Kılıçdaroğlu announced that he would not pay his electricity bills, calling out President Tayyip Erdoğan to take back the gradual electricity price hikes that were taken into effect at the beginning of the year that raised protests all over Turkey. You may say that it is
As Turkey-wide protests to the rising energy prices continue, opposition Republican People’s Party (CHP) metropolitan mayors issued a joint call to the ruling Justice and Development Party (AKP) government asking for exclusive energy tariffs for the municipalities. Eleven CHP metropolitan mayors stated that the rising energy prices have become “unbearable” for the mayoralties to provide