Call us, we are currently working
+90 536 771 29 16
газета the economist
August 10, 2022 | Viewed: 1612 | 0

How does Turkey's economy continue to grow despite raging inflation?

The British magazine The Economist published an article on its website about the growth of the Turkish economy as a kind of mystery that is hard to believe, but the facts say exactly that. We are publishing a translation of some excerpts of the article.

“It may seem to outsiders that the story of a thriving Turkish business is hard to believe. Since 2018, the country has been limping from one currency crisis to another, foreign investors have got rid of Turkish bonds and stocks, the lira has plummeted, and inflation has jumped to almost 80%. Nevertheless, the economy continues to develop in some way.

The sustainability of Turkey’s real economy is a bit of a mystery. Turkey is one of the few major economies that have managed to demonstrate at least some growth in 2020. In 2021, Turkey’s GDP grew by 11%. Industrial production increased by 9.1% year-on-year. Even experienced businessmen were caught off guard.

In the last months of 2021, interest rates were reduced by five percentage points, to 14%. Lyra was under pressure again. Since then, inflation has risen from about 20% to almost 80%.

In the face of such chaos, it is remarkable that the economy continues to develop as well as before. This is largely the result of Turkey’s numerous commercial advantages. It has a large domestic market with 85 million consumers, mostly young, and has long been a transit point for trade between East and west. The country’s business culture has deep roots. The proportion of the population aspiring to become entrepreneurs is high by international standards.

Some European companies are now considering Turkey as a potential alternative to China as they seek to reduce and diversify their supply chains. Last year, ikea announced that it would move the production of some of its furniture from Asia to Turkey. Clothing firm Hugo Boss has said it will increase the capacity of its Izmir factory to reduce dependence on Asia. But Turkey’s monetary instability, as well as deteriorating governance and the rule of law, are an obstacle to a new boom in foreign investment.

Curbing inflation would be a big and painful job, but Turkey’s experience after 2001 shows that with the right policy it can be done and after that the level of foreign investment can recover.”

Similar articles

April 17, 2025

In Turkey, the “şartlı giriş” (conditional entry) has been canceled since February 1, 2025

Since February 2025, Turkey has officially abolished the "şartlı giriş" system of conditional entry, which...

Read more
ТУРЦИЯ: НАСКОЛЬКО СТРАШНЫ ЗЕМЛЕТРЯСЕНИЯ?
March 23, 2021

Turkey: How bad are earthquakes?

The birth of the new is preceded by the destruction of the old. Fires, floods,...

Read more
Недоступные для ВНЖ районы Турции
May 25, 2022

Inaccessible areas of Turkey for a residence permit. Official

On June 30, 2022, the Turkish Migration Service (GEC) increased the list of areas inaccessible...

Read more
УСЛОВИЯ ПРИОБРЕТЕНИЯ ГРАЖДАНСТВА ТУРЦИИ
August 17, 2021

Conditions for acquiring Turkish citizenship

Turkish Citizenship Law No. 5901 dated 05/29/2009 ARTICLE 5 – (1) Turkish citizenship may be...

Read more
ДОКУМЕНТЫ ДЛЯ ЗАКЛЮЧЕНИЯ БРАКА В ТУРЦИИ
August 17, 2021

Documents for marriage in Turkey

In order to arrange a marriage with a Turkish citizen in a state body -...

Read more
КАК ВЕРНУТЬ ЧАСТЬ ДЕНЕГ, ПОТРАЧЕННЫХ НА ПОКУПКИ В ТУРЦИИ
August 17, 2021

How to get back some of the money spent on purchases in Turkey

Are you familiar with the Tax-free system? Did you know that she works in Turkey?...

Read more
We will send you the current price

Leave your contact information. We will respond as soon as possible. No spam!

    Request a callback

    Leave your contact information. We will respond as soon as possible. No spam!

      Would you like to come for a free inspection tour?

      Leave your contact information. We will respond as soon as possible. No spam!

        Would you like a discount?

        Leave your contact information. We will respond as soon as possible. No spam!

          Would you like an online viewing?

          Leave your contact information. We will respond as soon as possible. No spam!

            Thank you for your request, our manager will call you back shortly

            The message was not sent, please write to us in the messenger.

            We will answer any questions

            Leave your contact information. We will respond as soon as possible. No spam!

              Object presentation

              Specify your contact information and download the presentation of this property in one click. No spam!

                Catalog of Istanbul apartments for living and investment

                Specify your contact information and download the catalog in one click. No spam!

                  How to choose the best investment option in real estate in Turkey?

                  Specify your contact information and download the checklist in one click. No spam!

                    What documents are required to obtain a residence permit

                    Specify your contact information and download the checklist in one click. No spam!

                      What documents are required to obtain Turkish citizenship?

                      Specify your contact information and download the checklist in one click. No spam!

                        💰 Money transfer is needed

                        Provide your contact information, a manager will contact you!

                          Are you leaving already?

                          Download: TOP 5 things to know before buying an apartment in Istanbul

                            WhatsApp