Turkey’s Unravelling Economy.

The Turkish lira has been in meltdown as President Erdogan rejected warnings on the dangers of his recent interest rate cuts. He vowed that there was “no going back”.

After trading resumed, the benchmark index was more than 8 per cent lower. even after fridays fall the turkish stock that sounds good, but in dollar terms, it has fallen by 36 per cent. friday, a day after the central bank again this morning it has continued its collapse down an additional 6%. it has been easy to talk to experts on the but because of the political situation

In they don’t feel they would be safe if they they weren’t even comfortable with the idea of an off the record conversation. turkey is a country with a proud history, of modern turkey, is one of the oldest permanently settled regions in the world. mustafa kemal atatürk became the republic’s first president. he transformed the old religion-based constitutional a

Secular constitution, implementing social political and economic reforms. it is one of the most visited tourist destinations in the world where they drink more tea than the irish do. they classify pg tips as tea – which even turkey had a painful experience of high and through to 2004 caused by political instability, deficits and depreciation of the turkish lira the

Establishment of an independent central inflation along with tight fiscal policies starting in the early 2000’s an economic boom transformed turkey into an upper middle-income while still classified as an emerging market, according to the imf, in 2020 it was the twentieth a crackdown that came after an illegal coup turkish president erdoğan indicated his approval those

Involved in the coup, with the eu suggesting the european parliament temporarily suspended membership negotiations due to the “disproportionate as i mentioned earlier, turkey’s national currency has been in freefall. the turkish stock market is down 36% this on thursday after a widely expected interest president erdogan had announced his intention this currency crash has

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Hit turkish citizens officially reported inflation rates of 21 right after thursday’s rate cut, president in his speech, he described the increase as workers, about 40 per cent of whom earn the minimum wage. in pay for workers in dollar terms compared there is of course a feedback loop between inflation and wages. an inflationary environment is obviously very the press

Is filled with stories of minimum might think is good for farmers, but the cost which are imported are up even more meaning it is hard to hike prices on your customers bakeries have started posting signs explaining many small businesses don’t know how they exporters have been doing better, as they rise in the value of foreign currencies, of than half of their customers

In turkey, and that business is drying up. wealthier individuals with savings, seeing their savings into us dollars and euros, causing the currency to fall more. in turkish lira, this group have possibly been squeezed the most. price inflation data, a claim that the government deny. this disparity might be somewhat explained if this is the case though, it could be a

Well, there are a variety of things causing we can start out with the simple explanation goods, turkey is exposed to inflationary pressures, these problems are being seen all around the world. the expectation that the us federal reserve means that capital that was chasing higher this has led to an appreciation of the dollar none of these issues really explains the problem

In turkey. the collapse of the turkish lira is president cutting interest rates during a period of policy will boost turkey’s economic growth and export potential. he has invoked islamic precepts against usury he mostly blames foreign interference for this is the opposite of what most economists believe to be true. simply become cheaper and foreign consumers will want

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To buy even more. turkey is heavily dependent on imports, and in recent months, erdogan has cited china’s model would work, and while it is true that 1990s, this devaluation was combined with a clearly defined industrial policy. it is also not settled that this is a winning policy for china. turkish authorities have spent billions of while simultaneously praising the

Virtues of a cheap currency. while his core idea of defeating inflation is that his islamic ideology helped keep government the low interest rate policy led to a debt-fuelled at its peak the property development sector made up 20% of turkish gdp growth. at the end of 2016 nearly 90% of the credit the istanbul sapphire – one of the tallest as the turkish lira collapsed,

Those loans exploded. the construction boom peaked in 2014, 69 skyscrapers up to half of the buyers of luxury properties the lack of demand, along with the rising much like in china, real estate speculation new apartments upfront, off the plans, these unlike beijing, the turkish government actually in june 2020, the government banks were instructed loans for new apartments

To 7.68% per year during that time, turks could earn 10% interest in their savings accounts. all these efforts did move the market, but owner in turkey have risen to over 1.5 million in the first quarter of 2021. aside from the local construction projects, projects like istanbul grand airport, the the osman gazi bridge for example, cost almost the operators 40,000 cars

Per day at a toll of 30 euros plus tax per car. the toll is very expensive in turkey, especially the toll has since been cut to make it more one of the big problems with low interest i mentioned at the start of this video that since 2014, the year erdogan became president, into people for insulting the president, and people who “insulted the president” during the human

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Freedom index shows that in the this loss of freedom is tragic, but also economically harmful. while older people are being more careful a recent viral video in turkey showed a mother her eight-year-old son contradicted her, pointing young turkish people are not at all happy with the way things are going. almost nine million turks born since the late election in 2023 and

That could spell trouble well, normally, investors look to a nation’s turkeys president has repeatedly shown that ministers won’t do what he wants, he will he has fired three central bankers in the last two years. with an election coming up in 18 months, erdogan enable the turkish economy to grow out of its problems. is not a total basket case like some emerging markets.

Turkey has a lot of positives, it has a diversified there are of course issues with corruption, turkey still is a democracy where elections there are elections scheduled for june 2023, whether he would accept defeat is a difficult question with no clear answer. in those circumstances the only way for turks unless he suddenly changes course, the most with great potential,

Is how much longer the if you enjoyed this video, you should watch

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Turkey's Unravelling Economy. By Patrick BoyleliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-12-21T014510+0000endTimestamp2021-12-21T020635+0000}

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