Turkey has 6 months to avert the next economic crisis

On the face of it, Turkish economy is improving rapidly. This is not only the view of Real Turkey Channel, but shared by major investment banks, such as HSBC, Citibank and Bank of America. As a result, foreign financial investment is flooding Turkish asset markets, while residents are lining up to convert their dollars to TL. This frenzy should push inflation down in summer-autumn months.

 

All this being said, it is too early and premature to suggest that economy czar Mehmet Simsek’s austerity program is a success. He has done a lot but not nearly enough to wipe off the vestiges of past mistakes or bring about sustainable change. He must focus on cutting fiscal spending and reducing domestic demand growth. The problem is Erdogan may not approve such measures.

 

 

The Turkish economy will be “the Wunderkind” of Emerging Markets in the next 6 months, but is actually inching towards another economic crisis in winter 2024/25. What kind of crisis? Will Erdogan open Simsek’s way to avert the crisis? For more; www.paturkey.com

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