New Concerns About the Turkish Economy

The rise of the US dollar and rising unemployment in recent months have created new economic conditions for Turkey. The low and middle class have faced severe obstacles to earn a living.

Erdogan’s government and the Justice and Development Party try to focus all their power and capacity on the Eastern Mediterranean’s developments and guide public opinion in this direction.

Now the US dollar in Turkey is equal to seven and a half lira. In just the last few days, this foreign currency has become 12 cents more expensive.

However, even a rise in the dollar value brings new consequences. Both in terms of people’s purchasing power and repaying Turkey’s $150 billion debt.

Turkish Lira is in a Free Fall

Besides the dollar rise and the depreciation of the Lira, Turkish society and officials have been worried about unemployment. In the last seven months alone, one million people have lost their jobs and asked the government for unemployment insurance.

This year, however, the government has enacted a new law. According to it, no public or private sector manager can dismiss a worker or employee.

According to Kobilai, an analyst at Oxford Economics, regarding inflation and increased liquidity, Turkey stands lower than Argentina’s weak economy. All the unfavorable conditions and worrying features of the Argentine economy in 2018 are now evident in Turkey.

What do Analysts Have to Say?

According to analysts, over the last 15 to 20 years, the Turkish economy has always been in a state of surprise and shock. During the coronavirus outbreak, the country’s economy faced an unexpected surprise.

Its monetary policy and foreign exchange resource management were determined in such a way that the dollar reached its highest rate. Contrarily, the Turkish Lira reached its lowest level.

The government is talking about normal post-coronary conditions. However, Turkey needs to prepare to face challenging and unusual economic conditions because of the financial and economic reasons.

The opposition accuses Erdogan’s government, particularly his son-in-law, Finance Minister Berat Albayrak, of incompetence and inefficiency. Although the coronavirus has damaged Turkey’s trade and tourism industry, they think it has not been the main reason for the country’s economic downfall. They claim that the rise in unemployment is not just about the coronavirus, and the government’s misguided monetary and fiscal policies have played a significant role.

Opponents of Erdogan believe that even raising executions in the media and political circles is intricately linked to Turkey’s economic situation.

They think that the politicians of the Republican Coalition and Erdogan’s team are seeking to engage the public with the issue of restoring the death penalty in Turkish criminal law.

Rising unemployment has created new economic conditions for Turkey in recent months. Life in the country is becoming more expensive.