Turkish President Recep Tayyip Erdogan attended a ceremony at Istanbul’s iconic bridge to mark the second anniversary of the July 15, 2016 defeated coup in Turkey, which left 251 people martyred and nearly 2,200 injured.
Ahead of the snap election in June 2018, Turkey is under a severe financial attack. It is quite apparent that Turkey’s macroeconomic indicators are quite healthy, and it is not possible to explain the current financial pressure “economically”.
“Turkey’s economic governance architecture is robust enough to withstand domestic and international shocks and will weather many storms to come.”
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.
“Time is more than ripe for the TCMB to reconsider its monetary policy stance and take into account real factors such as employment, economic growth, income inequality and, last but not least, the development process of the country when constructing monetary policy function. After all, central banks are for the people, right?”
What’s the future prospect for the Turkish economy?
“The current inflation rate in Turkey is mostly driven by supply conditions. This does not meet the main symptoms of overheating.”
The number of newly established companies in Turkey jumped 27.80 percent last month compared with February 2017, the Turkish Union of Chambers and Commodity Exchanges (TOBB) announced on Friday.
The Turkish private sector’s outstanding long-term loans received from abroad rose to $225.7 billion in January 2018, while short-term loans stood at $18.9 billion, according to an official report on Thursday.