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Published On: Thu, Oct 29th, 2020

Quora Question: Is Turkey in a financial crisis?




Quora Question: Is Turkey in a financial crisis?

ANSWER

The current political administration has been in power for almost 20 years.

However, Turkey is experiencing a troubled period in economy, as funds have been used for areas such as construction and infrastructure investments, rather than investments that would increase production.

Current administration has also sold very important assets of the country under privatization and has not been able to use these revenues as need be (that is for investments to increase production and exports)

On the other hand, corruption which has been on the agenda of the country many times, has also caused serious damage to the economy – hence the country. Needless to say, the covid-19 epidemic also contributed significantly to this undesired picture.

As a result of all above shared factors, unemployment has increased excessively, inflation has increased again, and the Turkish lira has lost substantial value against foreign currencies.

The Central Bank, which is considered to be of great importance for the economy, also failed to take the necessary measures as needed because the administration intervened in its activities in many cases.

In this regard, as an answer to the question we could say “Yes, Turkey is having economic difficulties”.









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