Turkish Economy - News & Updates

[xenon54 out]

Go have some yeni raki. Economy is beyond your horizon.

Turkey has the biggest disadvantage by her low skilled labor force and uneducated population. This is the price turkey must pay now for 80 years of brutal kemalist white turks supression against the sunni muslim majority.

Aaaand hes back.

 

[Deliorman]

Exports in September increased by +9%.
Imports are +30%.

In total the trade deficit for the month is 8$ billion which is a double increase compared to September 2016.

At that time last year the EURO was worth around 3.30 YTL. Today it’s 4.20.

Inflation is up by 0.65% and is now above 11% for the year.

Taxes will be increased, relations with the main trade partners are getting worse, the business climate is getting worse... but it’s all great in Erdoganistan. Flowers and unicorns everywhere.

 

[Constantinople]

Guys why Turkish lira is going down ?!!! What is the problem ?

 

[OguzSenturk]

Guys why Turkish lira is going down ?!!! What is the problem ?

Turkey has a huge current account deficit, which means TL will keep losing value every year, until current account deficit becomes zero (i dont expect it to be in next 10 years with current retarded government)

 

[Deliorman]

What eastern block, huh? @ALPfollowerOF373 75-80% of Turkey’s exports and investment come from EU and America. Many Turkish companies work for western clients. Biggest Turkish machine factories work with Western licenses, under western brands for western investors. Turkey is dependent on the Western Markets and it won’t be changed with building empty buildings, roads and airports, opening imam hatips on every corner, producing organik hosaf and reading the Kuran to the plants so they grow bigger... It will happen with better education, rule of law, helping science and entrepreneurs.

Which countries are in this Eastern block and what are you going to sell them? Clothes, pants and tomatoes or cheap Antalya vacations?
Turkey is with an economy as big as The Netherlands and produces and exports less than Poland or the Czech republic but you want it to compete with China, Japan, South Korea, India who produce everything and do it cheaper.

Retard is the one who thinks that with 12% inflation, 11% unemployment, a 3.85YTL for 1$, people paying interests of 20% to the banks, people hardly making money and paying their bills while feeding millions of Syrians, the economy and Turkey are going great.

 

[ALPfollowerOF373]

There is no one saying it will be easy, yes changing the direction of Turkey to East will be so hard, but what should be is this. The Western World Order is sucking the all energy the rest of the world produce. With war or without war it will be changed.

And there is no choice better than Erdogan, we already saw it last 80 years along. This is the birthing pain of new Turkey the magnificent.

https://www.ulusal.com.tr/gundem/cemil-ertem-bu-haberler-turkiye-ye-yonelik-operasyon-h179550.html

 

[OguzSenturk]

And there is no choice better than Erdogan

That does not refute the fact that current government is retarded a.f. Those baboons in AKP government had no idea about how does Economy work.

who the retarded, i think it is you are.

Reported. Get civilized before joining international forums.

 

[Beno]

Guys why Turkish lira is going down ?!!! What is the problem ?

The Turkish central bank is offering low-interest loans which leads to a lot of people loaning money which means that there are more Liras in the Turkish economy which forces price increases.

Here's an article explaining the corelation between low interest rates and inflation
http://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp

and here's an article that's going more in-debt about Turkey's situation
https://www.bloomberg.com/news/arti...k-raises-late-liquidity-rate-to-12-25-percent

 

[OguzSenturk]

National (electrical) automobile serial production project goes to Anadolu Group, BMC, Vestel.

http://www.haberturk.com/yerli-otomobilin-babayigitleri-belli-oldu-1695624-ekonomi

 

[Constantinople]

National (electrical) automobile serial production project goes to Anadolu Group, BMC, Vestel.

http://www.haberturk.com/yerli-otomobilin-babayigitleri-belli-oldu-1695624-ekonomi

Yes it's better to be electrical car and hope they can add self-driving option. A big move and i hope turkey will be one of few countries to produce such a car

 

[KediKesenFare3]

National (electrical) automobile serial production project goes to Anadolu Group, BMC, Vestel.

http://www.haberturk.com/yerli-otomobilin-babayigitleri-belli-oldu-1695624-ekonomi

This is perfect!

 

[what]

VESTEL is up 12% - the hype is strong
http://www.bloomberght.com/borsa/hisse/vestel-elek-san

 

[Deliorman]

Guys, I’m wondering... I don’t live in Turkey but is there any campaigns by the government or by the different chambers of producers and industrialists to promote “Made in Turkey” as a brand? Turkey needs economic freedom and to be easy to do business there but also needs to help to promote all local products and producers.

Turkey is really a country that produces many things but many people prefer to buy imported products instead of a local ones even if they are cheaper and not with a lesser quality than the foreign product. Turkish producers in many cases lack the funds, the experience and the know how about promoting their products which means that in many cases foreign brands have the edge over them in popularizing their products. For example Adidas spends billions on promoting their products every year... they also save billions with producing in Bangladesh and Indonesia but you get the idea- marketing is important.

The government in a partnership with the industrial organizations should start a viral and total campaign which asks the people to prefer products “Made in Turkey” - it’s good for the economy, good for the country, good for them too. That way more money will stay inside the country, less imports will be made, local producers will have more work, more people will get hired, wages will grow more easily, the internal marker will grow which can help it to grow outside too.

Some might say that such a campaing can’t really help us with the foreign trade deficit but you should know that even if a billion dollars more stay inside the country, if those billion dollars help the business of another 1000 companies- it can bring a lot to many people, to whole cities and communities and to Turkey in the long run. There is a thing in Economics called Money Multiplier- when a sum of money can multiply in the following years especially if invested right. You need money to make more money. The money we save by buying Turkish products instead of foreign ones will multiply in the future which means an economic growth. All money spent on foreign products are a missed opportunity for a Turkish company to be the next big thing... which in this globalized world matters a lot.

A “Made in Turkey” campaing can be made easily. Make it trendy on Facebook and Twitter. If all kinds of bullshit can be viral there why not something useful too, just needs some backing up by Erdogan, by popular singers, actors and etc to influence people with a tweet, photo a video or two. It needs a small add to be played on every commercial brake of the Media groups who are behind this campaign and posters all around Turkey and if the Government is serious about it it can have a success and backing for sure.

Such a small thing can help the economy and the currency much more than asking people to change their dollar deposits in liras or other such stuff.

 

[Pax Ottomana]

Our trade deficit is mainly because of energy imports. We need to:

• Ditch the petro-dollar and trade in local currencies
• Diversify our energy sources -- Coal-based thermal power plants are okay since we have coal but no more oil/natural gas based plants. We should also create new tax and investment incentives for solar and wind energy. Subsidize national companies and pass a law that lets them sell back to the grid.
  
• Nuclear fuel cycle industry must be created to avoid dependence on Russia and others for supplying Akkuyu, Sinop, etc.
  
• Create more techno parks and encourage investments in value-added, branded, exportable products and services -- Software, datacenters, call centers, cloud computing are all great sectors for young Turkish entrepreneurs to go into and bring Turkey some $$$ with their professional services. Turkey can't become a Top 10 economy by selling tomatoes and will soon lose its Top 20 status if we don't keep up with the global trends and invest accordingly.
  
• Try to shift the economy from consumption-based to export-based by creating globally recognized brands, goods and services.

 

[SouI]

Turkey can't become a Top 10 economy by selling tomatoes and will soon lose its Top 20 status if we don't keep up with the global trends and invest accordingly.

The only argument FOR international trade is this thing called "comperative advantage".

Comperative advantage only exists in a few sectors, not in all sectors. It exists in sectors like agriculture, aquaculture, mining, natural resources etc. So for that reason it is important that we have a good foot in these sectors.

Apart from these sectors like machinery, automotive, electronic devices etc have nothing to do comperative advantage and thus with geographics.

If you build the same factory in Turkey it will produce the same industrial products at the same quality for the same price. Geographics doesnt impact on this kind of businesses.

The outcome would be that the costs might be lower due to lack of transportation expenses and the price would be in local currency!

All these means is that we should force all industrial products to be produced locally and only goods that are objected to comperative advantage should be open to international trade.

Try to shift the economy from consumption-based to export-based by creating globally recognized brands, goods and services.

We need to lower the cost of borrowing for investment, but that would increase inflation.

But we can increase the cost of borrowing for consumption by adopting a consumption lending tax, which would lower inflation, and then we could lower interests to a point where inflation would again meet interest rate. That would lower the interests paid by businesses and entrepreneurs for investment borrowing!

In total there would be less local consumption done by individuals but more investment done by companies and individuals!