Turkey’s budget nightmare

Atilla YeşiladaPosted on
  • Real Turkey Channel mostly covered cyclical developments in Turkey since May 2023 elections.
  • As the economic stability program gains speed and attracts foreign investor interest, it is time to take a pause and dissect one of the most pressing structural problems: The budget deficit.
  • This podcast covers the four black holes in the Turkish budget. These are interest expenses, contributions to social security, the huge share of personnel expenses and finally the payments to concession holders for toll roads, tunnels, etc.
  • While short-term fiscal restraint is possible, in the long-term Turkey will be burdened by large deficits which will sap economic growth and employment via higher taxes.
  • Turkey’s demographics is gradually becoming her worst enemy, because of high unemployment and low wages. Time is running out to invent lasting solutions to the budget deficit problem.

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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.