Why does the economic crisis continue in Türkiye?

Mehr News, International Group: In 1402 AH, Turkey faced critical and difficult economic conditions. pass. The sharp decline in the value of the Turkish lira against the US dollar, the ever-increasing inflation of food and housing, has turned Turkey into a country where the majority of its citizens are facing serious problems to meet their daily needs and buy basic goods.

During the year 1402, every 1 American dollar from an amount of nearly 20 lira reached 32 lira at the end of March, and economic experts of this country believe that the monthly salary of 17 thousand The lira intended for millions of Turkish workers is even below the hunger line.

Relating inflation to global issues

In 1402, the people of Turkey experienced a situation that was unprecedented in the 22-year history of the Justice and Development Party. But the officials of this party, including Recep Tayyip Erdogan, the leader of the party and the president of Turkey, have stated many times that inflation and high prices in Turkey have no significant connection with the internal issues of this country and are part of a global problem! This is despite the fact that Erdogan, in his campaign meetings on the eve of the May elections, promised that if he is re-elected, he will improve the welfare of Turkey.

Turkey’s economic experts and analysts believe that the country’s economic crisis in 1402 AH is rooted in problems that started two years ago. They believe that Erdoğan’s frequent interference in rejecting the monetary-financial decisions of the Central Bank and entrusting the helm of the country’s economy to his son-in-law Barat Albayraq have created problems for this country, the effects of which will be long-term. However, Erdoğan himself and the officials of the Justice and Development Party have always tried to link Turkey’s economic crisis to the global economic crisis and even in some cases, claim that some economic teams of Turkey’s enemy in different countries, with targeted and hostile planning, the economy of this They have targeted the country! But Professor Darun Ajmoglu, the world-famous economist and author of the book “Why do nations fail?” In 1402 and in two different interviews, he announced that Turkey’s main economic problem is “low productivity” and “structural problems”.

The new economic team did nothing

After Erdogan won the presidential election again, he invited the famous Turkish economist Mehmet Şimşek to return to Turkey from America and take the helm of the economy.

Shimsek had previously entered the Turkish Parliament as one of the representatives of the Justice and Development Party and held positions such as the Ministry of Finance and Finance and Deputy Prime Minister. He had a successful record. But in protest of the government’s extravagance, the continuous interference of the son-in-law and Erdogan’s entourage in economic decisions, he resigned and went to America. Despite this, Shimsek returned to Turkey in June 1402 and took charge of Erdogan’s economic team. This team, which consisted of Vice President Jodet Yilmaz, Minister of Finance and Finance Mehmet Shimsek, Minister of Commerce Omer Polad, and Central Bank President Hafiza Ghaya Arkan, took a commitment from Erdogan not to take any of the economic and financial decisions of the Central Bank and other institutions. Don’t interfere economically.

Although Simsek’s return to Turkey had a positive psychological effect on the Turkish market, his team and the plans he has planned to restore the country’s economy are still He has not been able to do anything and during the year 1402, we have continuously seen the price increase in sectors such as housing, food, energy, clothing and transportation. In addition, the lack of foreign exchange resources and the increase in production costs have caused a significant number of production units in Turkey to close or go bankrupt.

Turkey’s central bank worrying margins

Ms. Hafizah Ghaya, educated in American universities, on the recommendation of Shismak and as the first woman in the history of the Republic of Turkey to head the Central Bank of this country. Shortly after his appointment, contrary to Erdogan’s previous policies, he announced an increase in bank interest. The Turkish market and economic activists and analysts of this country welcomed Mrs. Erkan’s decisions, while Erdogan had previously considered bank interest as usury and forbidden money in order to please his conservative supporters. In the next turn, he increased the bank interest once again, but the fringes of his personal and family life, including the interference of Erkan’s father in the internal and personnel issues of the Central Bank, forced Erdogan to issue his dismissal. In this way, Mrs. Erkan is known as the person who has been the head of the central bank for the shortest time.

Turkey’s hope for financial resources of the Arab world

Turkey’s political relations with America and the European Union did not see any positive changes in 1402 AH. Turkey’s failure to comply with several judgments of the European Court of Human Rights and also Turkey’s support for the division of the island of Cyprus into two Turkish and Romanian parts was one of the most important reasons for the strained relations between Turkey and Europe, which made European investors unwilling to invest their capital. Transfer to Turkey. In the case of America, differences such as the difference in the views of Ankara and Washington about Russia, Syria and other issues have made American banks and financial groups reluctant to invest in Turkey. For this reason, Mehmet Shimshak and other members of the Erdogan government’s economic team made several trips to the Arab countries along the Persian Gulf during 1402 in order to restore and organize the economy and compensate for the deficit of foreign exchange resources by transferring Arab capital to Turkey. /p>

The frequent trips of Mehmet Shimshek and Jut Yilmaz to the United Arab Emirates, Qatar, Kuwait and Saudi Arabia are part of their continuous efforts to attract Arab capital. But the evidence shows that, contrary to what the Ankara authorities thought, the Arabs have also resorted to using a cane to transfer capital to Turkey, and their total investments in Turkey in 1402 did not even reach 50 billion dollars.

Positive tourism situation, negative export situation

The year 1402 is coming to an end while Turkey’s tourism sector has been the only profitable and growing economic sector of this country. According to the official statistics of the Ministry of Culture and Tourism of Turkey, during 2023, Turkey’s tourism income has increased by 17% compared to the previous year, reaching a figure of 54 billion and 315 million dollars.

Unlike the tourism sector, other areas such as the industry, housing and foreign trade sector have gone through an unfavorable situation in the last year, and the foreign trade deficit exceeded 106 billion dollars. It went further and in other words, Turkey’s import volume was 106 billion dollars more than the export volume.