Images of everyday life. A journalist argues on television with law professor Ersan Sen, because he claims that 59% of Turks no longer make ends meet with the money he gets and 27% as soon as he takes them for a walk. Same conversation in a market in Istanbul. Someone complains about rising prices, even within a week.
“I go to the market twice a week, Monday and Thursday,” he says. “I always buy from the same producer. But even between the two days the prices go up.” But on the other hand, if one listens to what Turkish Finance Minister Nureddin Nebati has to say, one will think that the situation is not so tragic. Crisis; But what crisis? Nebati is looking to find her.
Economic model of Turkish inspiration
“The productivity of the economy is about 79-80% and trade is going well,” he said, defending government policy. In fact, the economy and people are living with high inflation not only since the problem became really acute. The percentage has been in double digits for years. And this erodes the corporate reserves and savings of the Turks to the same degree. Relaxation of the situation does not appear on the horizon, as at least experts estimate. This is becoming increasingly problematic in the economy. Yes, the cost to staff is low, but in other areas prices are skyrocketing. In the transport sector alone, official statistics show inflation at around 100% from year to year.
Energy prices, which have recently risen internationally, act as a catalyst in Turkey, which has few raw materials and is dependent on imports. But the government is primarily responsible for the situation, says Haki Eztirk of the renowned BahseÅŸehir University. Because it violates all the principles of the economy and continues the policy of low interest rates. “If there had been no rate cuts, the exchange rate would not have been so bad, nor would inflation have risen so much. Nor would government bond rates, both in dollars and in Turkish pounds, have been so high.”
Who is the main person in charge?
Low interest rates for more investment: this is the core of the so-called Turkish economic model, which takes time to bear fruit, as Economy Minister Nebati at least believes. But on the other hand, it is true that interest rates in relation to inflation are low and the exchange rate of the Turkish pound with other currencies has stabilized, albeit at a low level. And that will continue, Nebati believes. “The next step is to increase agricultural production, there will be economic prosperity due to the good weather. In addition, trade is alive and we hope that the war will end soon. And our tourism revenues will exceed our expectations.”
But the war in Ukraine continues, Ukrainians are not expected and Russians are a question, if they will come. It is something that worries tourism businesses as well. Who is primarily responsible for this misery?
“You told us you would make Turkey one of the top 10 economies, but you made it one of the top 10 countries in inflation,” said Fake Eztrak, a spokesman for the Republican Party, the largest in the country. “Who is responsible for all this? Who is the head of government in this country? Of course, Recep Tayyip Erdogan.”
Uwe Lib
Edited by: Irini Anastassopoulou
Source: Deutsche Welle
Source: Capital

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