“The sharp depreciation of the Turkish Lira (TL) has made the value of Turkish assets cheaper, creating profitable investment opportunities for foreign capital. It is not difficult to guess that individuals and businesspeople that make investments in Turkey at such an appropriate time will get high returns in the medium and long run.”
The global economy is increasingly turning from an open, free market, to one weighted in the protectionist policies of individual states.
If Turkey’s New Economic Program is implemented properly, it will not be a surprise for Turkey to regain macroeconomic stability and to grow again at a level close to its long-run potential.
In order to avoid the deterioration of the Turkish Lira, the government need to reduce its reliance on foreign capital flows by speeding up structural reforms.
As Turkey is trying to reverse its deindustrialization process and is trying to avoid the middle income gap, the government should take a closer look to the South Korean development experience.
The decision to hold early elections in Turkey will not have a negative affect on the economy. In fact, it’ll be good for sectors such as housing and tourism.
Turkey’s cooperation with many states in the field of energy, including those from the West and East, is not a shift of axis but rather a strategic and pragmatic move.
“The current inflation rate in Turkey is mostly driven by supply conditions. This does not meet the main symptoms of overheating.”
In order to decrease its unemployment rate, Turkey needs structural reforms in areas such as education, immigration policies and labor regulations.
Operation Olive Branch is crucial not only for the stability of Turkish politics, but also for the stability for the country’s economy.