An analysis of the ‘Turkish economy’ in a prominent foreign newspaper: This crisis is different from those in the past

An analysis of Turkey in a foreign newspaper said that current economic developments had increased impoverishment. In the analysis, it was argued that the current crisis in Turkey is different from those in the past, that people who advocated mainstream economic policy in the past took part in economic management, but now everyone was loyal to Erdogan’s unconventional policies.

IMPOVERISHMENT IS INCREASING

It was noted in same analysis that the depreciation of the Turkish lira by 45 percent this year had made Turks even poorer and high inflation indicated a serious problem.

According to bankers and former officials who provided information to said media establishment pointed out this crisis was the most serious test Turkish financial institutions had faced for decades and there were also concerns that the crisis could turn into a wider financial instability.

THIS CRISIS IS DIFFERENT FROM THE ONES IN THE PAST

The analysis also reminded that there was no one left in the government to oppose Erdogan’s unconventional policies, including his policy of cutting interest rates despite high inflation. Lutfi Elvan, who resigned last week, was also said to be the last voice of the mainstream economy in the cabinet and the new minister was a loyal name to Erdogan.

The analysis said the devaluation in the lira, triggered discontent among middle-class Turks and working class who constitute the backbone of support for Erdogan, on top of the fact his political base was not happy with the situation.

FINANCIAL INSTITUTIONS CAN HOLD OUT FOR A WHILE LONGER

In same analysis, the it was also noted that there were signs that financial institutions would be able to withstand the pressure for a while longer, and that the recovery in tourism and increased exports also provided support to the economy as a whole, which could prevent a full-blown economic crisis for now.

Source: sozcu.com.tr/2021/ekonomi/wsjden-turkiye-ekonomisi-analizi-bu-kriz-gecmistekilerden-farkli-6809005/