Video commentary:  The death of an economy by thousand bites

Turkish economy never recovered from the devastating Covid-19 shutdowns in April through mid-June. Leading indicators heralded flatlining of activity by August. A chronically sick currency contributed to the fragility of the economy.  The Erdogan administration, sensing it lost the battle to defend the exchange rate, took several measures which were well received by markets and Turkish savers. The sudden spike in economic and investor confidence was a fleeting moment, though.  Ill-timed and poorly explained foreign policy steps sapped confidence once again, turning currency weakness into higher inflation and corporate bankruptcies to come. Ohh, by the way, the epidemic is still raging.  Turkey’s long-suffering economy won’t suffer brain death over night, but perish slowly by thousand small bites—by Erdogan government.

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.