“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.”
In order to overcome the current economic situation, Turkey’s key is not to save more, but “more productive consumption.”
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.
Western media outlets have systematically cherry-picked data in order to argue that the depreciation of the Turkish Lira is Turkey’s fault.
It is difficult to explain the current devaluation of the Turkish Lira against the U.S. Dollar on economic terms, as the current situation is a mere example of the global hegemon – the U.S. – exerting its political power on a so-called ally.
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.
As Turkey is going through a systematic transition, reforms and new initiatives in economics are required in order to sustain growth and development.
“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.
What’s the future prospect for the Turkish economy?