[Bigiron]

The financial crisis* in Turkey is inevitable
#Econgram_Turkey




Facts:
1) In the third quarter of 2022, Turkey’s GDP increased by 3.9% year-on-year*, a drop from 7.5% and 7.7% year-on-year growth in the first and second quarters respectively.

2) In November, the inflation in Turkey was 84% year-on-year, compared to less than 20% in 2021.

3) Despite all the efforts to protect the lira (read more here: https://t.me/TheEcongram/69), the national currency has depreciated* 36% year-on-year.

Analysis:
1) While many countries reacted to the inflationary pressures by tightening their monetary policy*, Turkey conducted monetary easing.

2) This strategy has helped Turkey to expand its economy, though the lira’s depreciation made it harder for the companies to pay their foreign-currency debt.

3) Furthermore, the Turkish CB’s foreign currency reserves have declined in gross terms. If liabilities are taken into account, the Turkish foreign currency reserves are currently negative.

4) Overall, Erdogan is focusing on short-term economic growth, which might help him to win the elections in 2023. However, the policies implemented might result in a recession and financial crisis.

Inspired by RANE

(https://worldview.stratfor.com/article/h...crisis)The Econgram (https://t.me/TheEcongram)

[sgbuffett]

Erdoğan is an economic illiterate leader.
Anyway the people's savings already wipe off by high inflation...and the money js used to subsidise debt ridden companies by giving them low interest rates and inflating away their debts.

It is rob from the responsible citizens to give to the most irresponsible corporations many linked to his family

[Blin]

money no enough everywhere.

[theold]

For the past 1-2 years, property prices had risen in Asia.

Within the last one year, interest rates have risen ranging from 1 plus % to 4-9%. The markets are expected to crash for real estate and cars.

Another is the sanctions on semi-conductor firms in Asia for 2023.

However, China's opening up will reduce the impact for some sectors.