Are Performance Indications of Turkish Economy A Guarantee for the Future?

Turkish economy, despite the devastating global crisis has managed to survive with minimum losses.

Many experts comment this is due to the structure of the economy and the industry, as well as the entrepreneurial spirit of Turkish people and last but not least the unique social family structure of Turks.

In fact, Turkey has been displaying some bright figures pertaining to the performance of its economy when many European countries such as Greece in the first place are suffering difficulties.

The question is “Should the government be credited for this successful performance as well?”.

The answer is yes without any doubt, when one looks at the issue from this point of view.

On the other hand however, when we look at the strength of the Turkish economy we see that many experts have made fairly negative comments, meaning the economy does not seem to be in possession of required strength to resist a further crisis, likely to happen any time – despite the achievement so far.

Another good sign for the future of the economy has been the decision taken by IMF to end monitoring program.

In consideration of the growth performance Turkey has shown, the administration has come to an end with International Monetary Fund – regardless of the ongoing global crises.

In fact, Turkey has not signed a new stand-by agreement since 2008, despite a lot of criticism from finance experts that it should have done so to be on the safe side and especially at a time of global crisis.

On the other hand Turkey’s debt stock of the loans to IMF is currently 3,9 billion USD. Thus as the total loan is below Turkey’s quota post-program monitoring (PPM) has ended automatically.

Thus this has been another good sign that the current government has been doing well.

The only criticism the administration cannot account for (in a manner that would make sense) is the great and most valuable assets of the country have been sold (and there are more to come) and nothing else has been put in place to replace them.

Experts say Turkey could face a bankruptcy situation like a company selling its assets and “spending” the money instead of investing it somewhere to bring revenues in etc.

We also believe despite the apparent bright performance of the administration Turkey has been “consuming” its assets in a most risky manner.

We only hope time will not prove us to be right.

Editor
15.09.2011 – 14:00