Turkish economy: Timely reporting and analysis of economic developments in Turkey with all its structural problems, as one of world’s 20 biggest economies
Erdoğan spoke and the markets were thrilled, according to the mainstream Turkish media. The reason is that the value of the Turkish Lira rose to 7.8 per dollar from 8.5 following a year that the government spent $100 billion to keep it initially below initially 6 liras and then 7.And the media does not care
Central Bank Gov. Uysal’s replacement combined with Finance Minister Albayrak’s resignation might signal the end of an era in monetary policy that relied on an unorthodox policy mix with low interest rates and foreign exchange reserve sales. We are still trying to sort out what to expect from the second week of November after a
The government revealed its new economic program for 2021-2023 on Sept. 29. The long-term goals of such programs hardly go beyond being a wish list worldwide. This is because the economy is an equation with so many unknowns. Hence, it can even be difficult to predict the following month not to mention the following year.But
“Turkey is not such a rich country to take an economy lesson that is so expensive,” said economist Uğur Gürses in his most recent article published on Duvar English. Gürses noted that while it’s “painful” to see comments about the Central Bank raising interest rates while the exchange rates are at a record high. Gürses
Easing relations with Greece and the European Union (EU) through diplomatic reconciliation would not heal an economy that is facing other serious problems, but consensus might give a sigh of relief if corrective steps are intended. The U.S. dollar trades over 7.7 per lira as the euro stands near 9 liras. The U.S. Ambassador to
President Tayyip Erdoğan has been saying that everything is fine, but many key issues tend to get out of control. Let’s start listing the problems without further ado. Uncontrolled herd immunity 1- The coronavirus epidemic has spread again, starting to collapse the morale of society. The Covid-19 outbreak, which regressed due to restrictive -but not
1. Low interest-high growth proved unsustainable The first week of September was rather intense in terms of data releases. The growth numbers that were released on August 31 reflected an 11 percent decline compared to the previous quarter. This number is rather close to the OECD average. If we express the Q2 growth in annualized
The deficit and the Resource Curse The cost of extraction and the annual potential production level of 320 billion m3 natural gas recently discovered in the Black Sea have not been clarified yet. But it’s understood that this discovery will provide a substantial resource for the Turkish economy. And upon the discovery of this natural
Turkey’s war on COVID is not going well at a time when the economy is also not performing well. TÜİK, the state-run statistic institute, announced on Aug. 31 that the economy shrank 9.9 percent in the second quarter of the year. The additional efforts to prevent a double-digit figure might surface when experts write on
Columnist Uğur Gürses discusses Fitch Ratings’ recent move to revise Turkey’s outlook to negative, within the framework of responses by Nurettin Canikli, the ruling Justice and Development Party lawmaker. “It was known that Fitch would be lowering Turkey’s outlook to negative on August 19 when President Erdoğan said he would be giving good news on August