A British report presents a bleak outlook for Turkey's economic future

A British report presents a bleak outlook for Turkey's economic future



Twilight News

9 hours ago

The Turkish state, under Erdogan's new presidential term, is moving steadily towards a severe economic crisis, the Royal Institute of International Affairs said in a report on Thursday.

The report referred to the government, which Erdogan inaugurated the presidential system, and included 16 of his associates; to consolidate his authority and take control of matters to control the decision-making centers, and the formation of the general policy of the country.

"Erdogan's most significant reshuffle in the government is the appointment of his son-in-law, Prat al-Beriraq, as finance and treasury minister in the new government, to manage the fragile Turkish economy after the overthrow of Deputy Prime Minister Mehmet Shimshak."

There is uncertainty about the efficiency of Erdogan's smelter in calming troubled financial markets and foreign investors. Erdogan is "likely to resort to short-term growth at the expense of the country's economic stability," Erdogan said.


The deterioration of the Turkish lira , the

report added: "But what is needed from Turkey now, stop raising big interest rates; to control inflation in the Turkish economy size, and requires the current situation easing imposed financial constraints, and the adoption of mega - infrastructure projects, as well as finding ways to support the lira , which is witnessing a decline , Amounting to about 20% since the beginning of this year. "

According to a new presidential decree, Erdogan added the right to appoint the central bank governor and his deputies and the members of the political and financial committee for four years to come. These decisions are the completion of the procedures for politicizing the Turkish bank which was independent on one day. The size of the big inflation by offering higher interest rates.

Erdogan sees economic progress as linked to high-rise buildings, mega-infrastructure projects and high growth rates. But if more pressure is placed on the low economic situation, these wrong policies could cause the collapse of the Turkish economy.

According to the report, "it seems that Erdogan is not appreciative of the situation of the Turkish economy, which shows the need for a comprehensive reform, to catch up with the developed economies, which rely on a strong infrastructure and construction projects financed by financial market flows, rather than relying on private investment projects and exports" .


High public debt , the

report says that " as a result of the policies of Erdogan; jumped foreign corporate currency debt to $ 328 billion at the end of 2017, and despite the reduction of the foreign exchange reserve account, but the situation is still worrying, reaching the public debt value to $ 214 billion. "

Some major Turkish companies have had to negotiate with bondholders to restructure foreign loan debt, given the economic burden imposed by the continued collapse of the lira. The failure of a large number of Turkish companies to pay off foreign liabilities would have a huge impact on the Turkish economy and cause panic. As well as the confidence of the global financial markets in the ability of the Turkish economy, leading to a crisis in the Turkish economic system through a long-term recession.

The nationalist party refused to join the new government. Right-wing party leader Dulat Bhagli learned the lesson well after the huge financial crisis of 2001 and decided to move away from the scene so as not to be responsible for the deteriorating economic situation. In the country again.

The report concluded that "despite the great political dominance of the Turkish president, but the deteriorating economic situation in the country is a significant threat to his current authority."

http://www.shafaaq.com/ar/Ar_NewsReader/ff95f69e-63cb-4a98-93fd-c5553c7c791f