Turkey an Overview of Economy



I made a hard choice apparently to write these series of articles regarding Turkey In every possible angles, so this is the third article and hopefully will be interesting for readers and the followers of syrializm.com

Turkey’s economy entered the 21 century with huge Inflation and Recession free and that all started at the mid 90’s with slow steps with a credit to many names such as the late Prime Minister and president of Turkey Turgut Özal with his policies & later the work moved on under the leadership of the late Prime Minister Bülent Ecevit.

All these previous leaders attempts to reform Turkey’s economy reaches its peak after the “Adalet ve Kalkınma Partisi “ (the Justice and Development Party) came to power in 2002.

The work paid off and the Turkish economy made a huge leap after its economical disaster that it last for more than a decade, the Turkish Lira fall that reached %100 and lost its complete capability which led to most of the Turkey’s banks to bankruptcy with big levels of unemployment rates, Turkey’s reduces the Inflation and Recession levels from %70 to %10 within four years.

The “Adalet ve Kalkınma Partisi “ (the Justice and Development Party) obeyed the agreement that was signed with the International Monetary Fund in 2001 which force the Turkish government to undertake and apply a drastic austerity policies with big government structure reforms the most important among these policies was the banking sector, where they allow to float the price Turkish lira, and lifting of restrictions on foreign capital flows, and emphasized fiscal discipline, with raising the independence of the central bank.

The growth rate between 2002 and 2006 up to 7%, coupled with a large influx of foreign investment.

Although the Turkish economy was still recovering, and continue to recovered very quickly after the global economic crisis in 2008, to reach the growth rate in both 2010 and 2011 up to 8% and 9%, respectively, and increased the level of per capita income nearly tripled, while it was annual per capita income does not exceed $ 3,500 in 2002 it exceeded within ten years to ten thousand dollars, with an exchange rate of 1.25 Turkish Lira per 1 US dollar.

The Turkish economy has become the seventeenth largest in the world and sixth in Europe.

These are indeed an awesome numbers compared to the numbers that we’ve right now, since the death of Zero problems with Turkey’s Neighbors, all the numbers kept on moving but backward this, time.

After the war in Syria, Turkey lost one of the biggest gates of its Foreign trading, through Syria by land transportation that was securing exporting of more than 35 Billion Dollars to the entire middle east & the gulf Countries, the bad relationship with Egypt also caused another losses, the trading through Iraq also lost since the emerge of the so called “Islamic State” with mentioning the issue between Russia and Turkey since the Russian Aircraft shooting down incident which is closed the gates with Russia.

As for Europe, turkey is exporting refugees to Europe in the number was increasing, till Turkey and the EU start the negotiations regarding and allow me to explain it this way, negotiations for compromise between Turkey and the EU.

The Tourism income hit rock bottom since the instability of the security problems and the number of explosions and terrorist attacks increased especially in Istanbul, when you walk these days in Taksim Square & the old traditional areas you’ll faced hard times to find tourists hanging around.

The exchange rate of 2.95 Turkish Lira per 1 US dollar which is shorten all the talk to describe the big loss that Turkey’s is suffering since that crazy touring point in Turkey’s policies that only destroyed everything was built in this past 10 Years.

Is it time for Turkey’s officials to realize their mistakes, and it possible that we should wait in some point for someone to wake up and try to fix all these huge mistakes that President Erdoğan supposed to be responsible for all these issues.

Does he ((President Erdoğan)) have the courage to back down or fix these horrible mistakes and count on the people to forget about this point in time and get back to the prosperity that he and his party started 15 years ago.

I hope so and we’ll see.

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