As stories about soaring inflation and a feared upcoming recession dominate headlines worldwide, Turkey finds itself particularly engulfed in pressing financial woes. An announcement by the national statistical institute in late July that the country’s inflation has reached almost 80 per cent, alongside the ever-crumbling value of the Lira — which at the time of writing measures at a 21 to 1 exchange rate with the pound sterling — situates Turkey in potentially its worst financial state in decades.
What’s been reported on by agencies is strongly felt on the streets, as public sentiment focuses on the skyrocketing prices of essential foods and household goods. The cheeses, pastries, and produce that are staples for most Turkish households have become luxuries, or simply out of reach for many people. For those fortunate enough to go to cafes or restaurants, they find menus constantly overwritten with updated prices — or missing them entirely — as business owners attempt to keep up with ever-changing costs.
While domestic media largely remains either tight-lipped about the state of the economy or supportive of official government lines — a reflection of the growing restrictions on national press freedom — social and alternative media platforms highlight the despair felt by many. Whether expressed by young students or elderly shopkeepers, their troubles are not simply a product of the most recent global challenges — relating to both the Covid pandemic and current war in Ukraine — but rather the latest installment in the government’s economic philosophy-turned tunnel vision that has pitted itself against most economic experts in the mainstream liberal economy.
President Erdogan and his party’s commitment to lowering interest rates has been scrutinised for years. Despite this, the Turkish president has largely stuck to his policies and offered up an elaborate smoke and mirrors campaign that includes everything from the regular reshuffling of key government figures — including the controversial removal of son-in-law and former finance minister Berat Albayrak — to the most recent announcement of “a fresh roadmap” for the economy that lauds an uptick in the GDP and asks for patience from the Turkish people while inflation inevitably stabilises.
President Erdogan has attempted to justify his economic policies not only through alleged financial insight, but through a greater political mandate. Despite years of economic trouble, government supporters in the past have largely expressed a trust in Erdogan and belief that he is still the best equipped to alleviate the growing crisis — blaming external factors like Covid, inept former senior officials, or the war in Ukraine as the primary obstacles in this effort. While this sentiment can certainly still be heard, what is unclear now is how many peoples’ sought-after patience has run out.
The everyday reality for many Turkish residents is one of vulnerability. Discussions with peers prompt the common refrain that they are unable to make ends meet with their current salaries and that the national minimum wage no longer reflects a remotely accurate measure of living costs in the country. Those who can afford to describe panic changing their wages from Liras into Dollars or Euros in an effort to mitigate the impact of the wildly unstable currency.
inews.co.uk