The Turkish economy is on the verge of collapse ..and experts predict a painful recession

Selava Omar –

The declining confidence in the Turkish economy summarizes the country’s financial, commercial and living conditions, amid a decline in the local currency exchange rate (lira) against the US dollar.

The index of confidence in the Turkish economy collapsed last April, driven by the severe crisis in the country’s domestic market indicators, as a result of the bilateral deterioration of the Turkish lira to the lowest level since August 2018.

Turkey has barely recovered from its first economic recession in ten years, and the economy is about to collapse again, in light of the Corona crisis, and the options of Turkish President Recep Tayyip Erdogan are limited, according to the “French Agency”.

And economists expect a painful recession, and some even talk about Turkey resorting to the International Monetary Fund, something that Erdogan has always rejected.

According to economic reports on the state of the economy in Turkey, state – run banks have helped the monetary authorities to defend the lira by engaging in currency swaps.

The Turkish Central Bank has spent tens of billions of dollars in its foreign currency reserves to support the value of the lira in recent months.

In exchange for the grim economic figures recorded by Turkey, experts expect that it will have no choice but to seek the assistance of the International Monetary Fund, as Ankara has resorted to this fund 19 times in its history.

Related Articles

Back to top button