Published On: Sat, Dec 1st, 2018

What will the Turkish economy go through in 2019 and the period to follow?

What will the Turkish economy go through in 2019 and years to follow?

Turkey enjoyed a honeymoon period for almost 10 years during which there was an abundance of funds in the money markets. The bad news is, it is over now and it is very clear the USA will not pump unlimited amount of dollars into the markets anymore, starting 2019. This means it will no doubt affect the world markets in general, making it more difficult to find new credit at reasonable prices and imposing a challenging situation for countries such as Turkey in particular with need of new funds to pay their due debts. This being the situation, a period of abundancy and growth will come to an end and a new period will start.

In this new period,
– cheap finance will not be available
– high performance on stock market will not be seen
– Rush for construction will be over
– luxury consumption will be out of question

But instead Turkey will have to live through a period in which rational management will have to be practiced and a long lasting austerity and saving measures will have to be an indispensable part of life.

The fact that the local elections are around the corner now and the administration will have to spend lots of money again to secure one more victory over the opposition, turns out to be another unlucky situation to bring further negative impact to the economy.

Therefore, although Turkey might not fully feel the negative impact of the crisis already on the way until after the elections, it is a fact that many sectors, construction to be in the first place will inevitably suffer the economic developments in the new period. To be even worse this will reflect on other sectors as construction sector has been the locomotive of Turkey’s economy for many years now.

Despite the sincere efforts of the economy administration and concerned measures put into practice, many companies may have to shut down creating a bigger jump in unemployment. It goes without saying, a further strong decline in production will also reflect on prices causing a sharper rise in inflation.

All in all, a very challenging period seems to be ahead of Turkey in 2019 but the good news is this country is strong enough to overcome such a negative picture as well, provided the administration gets down to work to sincerely implement suitable, rational strategies with courage.

There is no doubt the bill will be on the citizens to be able take the medicine for the cure, once again and unfortunately there is no other way to beat this challenge which the ordinary citizen should not be held responsible for, really.

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