The Economic Crisis in Turkey… No light at the End of the Tunnel!



The Turkish President Ragab Erdogan to fight the economic crisis.

He was able to stop the currency’s decline. But experts believe that hyperinflation poses a greater risk.

Some experts express their concerns at his announcement of the moon mission in a time of economic crisis!

What has been going on to the Turkish economy?

For more than two years the Turkish lira has been falling relentlessly, and unemployment, especially among young professionals, is tragic.

Prices have been fluctuating widely.

The picture has always been the same since the beginning of the currency and economic crisis in autumn 2018.

The economic situation is in a hopeless case. And the solutions proposed by the Turkish government, in terms of economic and monetary policy, are gone.

Economic inflation figures refute all Erdogan’s promises to Turks

Contrary to all the promises that the Turkish government had made before, in which it said that inflation would stop completely from mid-summer.

The Turkish Statistical Institute announced that the country’s economic inflation during the month of July reached 1.8%.

The Institute pointed out that the total inflation rates accumulated in the whole country, during the last eight months of the year only reached 18.95 %.

That means that the living and poverty levels in the country fell by the same percentage.

Abdul Wahab, one of the citizens who suffer from daily pressures due to the accumulated inflation processes, said

“I work as a public transport bus driver between Diyarbakir and the nearby town of Bismill. A year ago, I was buying fuel daily from the last station east of the city, and its cost was equal to 1/3 of what I get from passengers’ payment. But since early this year it started to change. Almost every week prices go up, while tickets are at their old prices. The salaries are as steady as they were more than a year and a half ago.”

Which sector in the country affected by the inflation the most?

The figures of the Turkish Statistical Institute said that housing prices and rent were the sectors most affected by inflation during this month, exceeding the limits of 5 %, followed by food, especially vegetables.

The same occurred to the prices of transport, services, fabrics, tobacco, iron, cement, medicine, and glass, where monthly inflation rates ranged from 1.2 % to 2.6 %, and annually from 19 % to 91 %.

Another promise

In another postponement of the immediate solutions that the government must take quickly, Şahap Kavcıoğlu said that the current sharp increases in inflation levels in the country are very temporary, and the last quarter of this year will be a stabilization period for inflation cases, promising that the mechanism of slowing inflation will begin from the end of this month.

Şahap Kavcıoğlu is the head of the Central Bank of Turkey, who was recently appointed by the Turkish President and considered one of the closest economic decision-makers.

Will Egypt be affected by Turkey’s decision to cut interest rates?

Experts predict that the decision by the Turkish central bank to lower interest rates by 1% will favor Egypt, which is a rival country to Turkey in attracting foreign investment.

Other analysts see the decision as having no impact on Egypt. Because there is nothing new during the deteriorating state of the Turkish economy.

COVID19. What links it with the Turkish inflation?

Turkey eased its strict coronavirus lockdown last month, after the number of new cases fell, boosting consumer confidence.

But the continued weakness of the lira and rising global commodity prices mean it is too early to start a new cycle of monetary easing. Even as President Erdogan promises to decrease the benefit rate in July or August.

The Turkish lira has tumbled more than 15% against the dollar since the surprise appointment of the new central governor last March, despite his pledge to maintain a strict policy until the 5% inflation target is met.

Erdogan makes a name for himself with Moon mission

Instead of helping agricultural producers and the population financially in times of crisis.

It seems that the Turkish president focuses more on a huge project now.

Erdogan announced the imminent birth of Turkish space flights. With the help of international partners, “by the end of 2023, Turkey will reach the moon with our unique and national hybrid rocket

Erdogan also invited people to find a Turkish term for the word “astronaut” and “cosmonaut”, which means a Turkish word for the English word ” astronaut”.

The project divides the Republic: While some express their enthusiasm for the project on social media, others wonder how the cost of the moon mission, which is so expensive, can be paid considering the economic crisis?


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