Turkish Economy - News & Updates

[AlohanAkua]

Can't find the article, but a lady was mentioned who owns a bakery, and she's already feeling the effects. The price of ingredients have gone up, price of gas, of shipping. And she can't raise prices to keep up, because then no one will buy, but now some days she doesn't even break even.

For her sake, and normal everyday people like her who had nothing to do w/ any of the garbage going on right now, I hope this gets resolved before things get much worse.

By the way I am surprised no one mentioned that the finance minister talked complete bullshit and didn’t mention a single number or actual thing we are going to do.

Did anyone else realise his hand gestures and jumping around.

Is this the son-in-law, who replaced the actual economist?

 

[Killuminati]

Erdogan needs to adress the issues firstly instead of blaming Foreign powers. Secondly, he needs to fire his son in LAW and replace him with an economics professor. Next, he needs to swear he will leave the central bank alone. And finaly, ne needs to shut up and stop talking about conspirisy theories. This will help restore investor confidence in the short term. This needs to be done asap

I agree with you about Bayraktar. He must fk off immediately. Put some damn professors or atleast some experienced people on the job. Cut off all high luxery bullshit costs.

 

[TaiShang]

The only part that has my interest is the bolded which is self-explanatory enough for your deep knowledge, but still I would like to ask:

What is your claim based on?

Economic indicators:

And you have just ~70 billion USD in reserves?

That's less than the yearly profit of one of China's sovereign wealth funds.

I don't understand why erdogan hate interests rate so much? And is there any chance for turkey to fix it's relationship with US?

let's hope the crash of turkish lira won't trigger another global financial crisis,otherwise no one will be safe in this globalized world

That would not make much impact on global economy. Turkey is not a significant export country (what it sells is easily replaceable), it does not hold much natural resources, and they do not have much weight in global financial system (such as the amount of reserve they hold).

I wish Turkey the best of luck because they will need all of them. Maybe it is high time to consider getting rid of the very person that is singlehandedly responsible for all of Turkey's miseries, including economic crisis, Syrian crisis, a de facto Kurdish state down south (I am against all separatism, including Kurdish separatism and terrorism inside/outside of Turkey).

I usually don´t agree with you on many things, but in the case of Turkey you are right. Too bad. Turkey is approaching an abyss, but its leadership is pushing further on the gas pedal, betting everything remains good and great. Unless the president of the Turkey changes his mind in the next days, the country will soon reach the point of no return.

Politics should be free of emotions. Even if one hates America for any reason, it is unwise to overestimate the own strength, playing anti US sentiment for domestic, nationalistic or religious consumption.

In fact, that president is one of the most pro-US. For once, they teamed up with the US to bring down Syria. They wanted to let the US military use Turkish soul to invade Iraq, but, then powerful opposition blocked it.

In Turkey, right wing Islamist governments are the most pro-US.

I guess the reason for crisis is that the US feel the present government is of no use anymore. Now the US has its own new-found allies, the Kurds.

The economic crisis is more of Turkey's fault than US action. Normally, a 50% increase in tariffs on steel/aluminum should not drive an economy into abyss. If Turkey economy is defenseless and ready to fall down with the slightest punch, that's because they have managed economy very badly over the past decade.

The only minor difference is the US has been acting really strongly, almost brutal, against Turkey as one EU official said yesterday.

But, normally, Turkey should have had a better economy and resistance. After all, Turkey is not the only country that Trump puts tariffs against.

Why Turkey so fragile?

 

[Viet]

Economic indicators:

And you have just ~70 billion USD in reserves?

That's less than the yearly profit of one of China's sovereign wealth funds.



That would not make much impact on global economy. Turkey is not a significant export country (what it sells is easily replaceable), it does not hold much natural resources, and they do not have much weight in global financial system (such as the amount of reserve they hold).

I wish Turkey the best of luck because they will need all of them. Maybe it is high time to consider getting rid of the very person that is singlehandedly responsible for all of Turkey's miseries, including economic crisis, Syrian crisis, a de facto Kurdish state down south (I am against all separatism, including Kurdish separatism and terrorism inside/outside of Turkey).



In fact, that president is one of the most pro-US. For once, they teamed up with the US to bring down Syria. They wanted to let the US military use Turkish soul to invade Iraq, but, then powerful opposition blocked it.

In Turkey, right wing Islamist governments are the most pro-US.

I guess the reason for crisis is that the US feel the present government is of no use anymore. Now the US has its own new-found allies, the Kurds.

The economic crisis is more of Turkey's fault than US action. Normally, a 50% increase in tariffs on steel/aluminum should not drive an economy into abyss. If Turkey economy is defenseless and ready to fall down with the slightest punch, that's because they have managed economy very badly over the past decade.

The only minor difference is the US has been acting really strongly, almost brutal, against Turkey as one EU official said yesterday.

But, normally, Turkey should have had a better economy and resistance. After all, Turkey is not the only country that Trump puts tariffs against.

Why Turkey so fragile?

Turkey has a large current account deficit hence relies on loans to finance it.Unfortunately most of money both domestic and foreign sources aren’t spent on increasing production but construction or consumption. Private sectors have some $300 billion in debts when the exchange rate is 2 lira for $1 Now with the exchange rate of 6.5 lira for 1$, the debts have increased to nearly $1 trillion. It’s impossible to pay back the mountain of debts.

 

[xenon54 out]

Turkey has a large current account deficit hence relies on loans to finance it.Unfortunately most of money both domestic and foreign sources aren’t spent on increasing production but construction or consumption. Private sectors have some $300 billion in debts when the exchange rate is 2 lira for $1 Now with the exchange rate of 6.5 lira for 1$, the debts have increased to nearly $1 trillion. It’s impossible to pay back the mountain of debts.

Erdogan gets his votes with investments that are visible to the voters, if he invests in industry nobody will see it but if he opens a bridge everybody says ''see he is doing something'' even thought that bridge will cost the state 8 times the price of the actual bridge thanks to the moronic build-operate-tranfer model.

This bridge is an exsample, the goverment didnt spend a single penny on its construction, a consotium of companies built it with their own money and got a guarantee of a certain amount of cars passing throught daily, if not then state pays the difference. Now the problem is the toll was set based on dollar but since it has risen it became ridiculously expensive meaning the bridge is basically empty and state is paying the company.
If you calculate the guarantee paid by state to the company in the 20 something years of operation we could have built 8 of such bridges, thats freaking ridiculous.

But whenever you talk to goverment supporters about this they say its a good investment and that we only oppose it because Erdogan did it.
And this is just one exsample how the ressources of the country are being depleted on show projects to please people who have zero idea about useful investments, many erdogan voters expect to become a superpower by putting concrete on random places, nobody actually questions how those a financed and what use they will give.

 

[Nein]

Bindik bir alamete gidiyoruz kiyamete.

Time for sone Cem Karaca.

 

[Fenasi Kerim]

Bindik bir alamete gidiyoruz kiyamete.

Time for sone Cem Karaca.

Amk not one business man, one economist with balls got up and said “wtf” is this guy talking about. Turkey is producing jokes of uni grads who’s only ambition is to leave the country or work in government offices.

Our country turned into a joke, Albayrak Memes all around, and these die hard fans still saying “kazanacagiz amk” please MHP, please CHP come up with some decent opposition!!!

 

[Constantinople]

erdogon know about economic as i know how to speak Chinese

 

[xenon54 out]

Our country turned into a joke, Albayrak Memes all around, and these die hard fans still saying “kazanacagiz amk” please MHP, please CHP come up with some decent opposition!!!

MHP is in the hands of a AKP puppet and CHP is busy hindering the only capable canditate from taking the lead.

 

[Fenasi Kerim]

MHP is in the hands of a AKP puppet and CHP is busy hindering the only capable canditate from taking the lead.

MHP had no choice but to side with government, was pushed that way by Aksener and co, they dont realise how much damage they did.

CHP, Ince is the only person who can bring it back to the normal path, but they need to clean it from the Dersim PKK members first.

 

[xenon54 out]

MHP had no choice but to side with government, was pushed that way by Aksener and co, they dont realise how much damage they did.

MHP sided with Erdogan before the Aksener circus started.

 

[Fenasi Kerim]

MHP sided with Erdogan before the Aksener circus started.

Sorry my bad, your right, they had to give concessions after 15 Temmuz and the theoretic of Turkey being under attack, dont blame them. Anyway not the place for politics, sorry for bringing it up.

 

[royalharris]

Erdogan gets his votes with investments that are visible to the voters, if he invests in industry nobody will see it but if he opens a bridge everybody says ''see he is doing something'' even thought that bridge will cost the state 8 times the price of the actual bridge thanks to the moronic build-operate-tranfer model.

This bridge is an exsample, the goverment didnt spend a single penny on its construction, a consotium of companies built it with their own money and got a guarantee of a certain amount of cars passing throught daily, if not then state pays the difference. Now the problem is the toll was set based on dollar but since it has risen it became ridiculously expensive meaning the bridge is basically empty and state is paying the company.
If you calculate the guarantee paid by state to the company in the 20 something years of operation we could have built 8 of such bridges, thats freaking ridiculous.

But whenever you talk to goverment supporters about this they say its a good investment and that we only oppose it because Erdogan did it.
And this is just one exsample how the ressources of the country are being depleted on show projects to please people who have zero idea about useful investments, many erdogan voters expect to become a superpower by putting concrete on random places, nobody actually questions how those a financed and what use they will give.

It is just one kind of business model,china also used it in the past to get investment

The problem is lira decreased seriously，not the business model itself

The reason is the sultan was cheated and turkey was milked by the cow boy with financial way

 

[TaiShang]

Erdogan gets his votes with investments that are visible to the voters, if he invests in industry nobody will see it but if he opens a bridge everybody says ''see he is doing something'' even thought that bridge will cost the state 8 times the price of the actual bridge thanks to the moronic build-operate-tranfer model.

I think that's the trademark of populist governments, but Turkey's government seems to have taken it to the extreme.

No sane populist government will spend taxpayers' money on projects that cannot easily be transferred into votes.

Ideally, government should not stupefy people but illuminate them, and make them see the long term benefits at the cost of short term (apparent) loss and pain.

This bridge is an exsample, the goverment didnt spend a single penny on its construction, a consotium of companies built it with their own money and got a guarantee of a certain amount of cars passing throught daily, if not then state pays the difference. Now the problem is the toll was set based on dollar but since it has risen it became ridiculously expensive meaning the bridge is basically empty and state is paying the company.

This is especially risky if the country is not having trade surplus and stashed a mountain of reserves aside. In fact, trade surplus would mean money has been spent wisely, not pet projects that make only a group of elites rich. Very few developing country has the luxury of not having trade surplus. If no trade surplus, then credits (loans) must be spent very very wisely so they could pay themselves back, not leading into a debt/interest payment trap.

I think, being on the Western camp, Turkey had a good chances for credit-based growth (and probably did that in the past), but now the credits seem to have been spent very unwisely and led to corruption and no return on investment. Add to that a very fragile foreign policy situation. Plus a very fragile global economy in which almost everybody at each other's throat.

I wonder if the current government had not sold all the national assets, privatized large SOEs, led foreign interests take over more than half of the baking system, ports, telecommunications etc (of course, for a payment), what would be Turkey's current account deficit with this level of unwise and short-sighted plunder of money.

 

[KingWest]

Hopefully they will use this opportunity the reform the social security model in Turkey. The retirement system and such is not viable in the long term. People can go on retirement after 20 years of work?! (My local bank director told me so, he will retire at the age of 45 lol).

To give you another example of the unhealthy Turkish lifestyle. My neighbour is an imam in a small village. He goes on retirement after 20 ish years of work. He works alone, has no children, his wife doesnt work. He owns a big *** mansion that is build 10 years ago, he has a car and a motor, his interior in his house is hyper modern with the newest tv, computer and such. He even has an extra appartment in Antalya. How can someone live that lifestyle?