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Turkish Economy - News & Updates

What is the driving force behind Turkish Economic problem?

  • The on going Trump attack on Turkish Economy

    Votes: 29 19.9%
  • Jewish Agenda to weaken adjacent countries to Israel

    Votes: 36 24.7%
  • Internal Turkish economic problems

    Votes: 50 34.2%
  • Falling Exports for Turkey

    Votes: 5 3.4%
  • Loss of Tourism income for Turkey

    Votes: 1 0.7%
  • External Loans or Debt impacting Economy

    Votes: 25 17.1%

  • Total voters
    146
Erdogan gets his votes with investments that are visible to the voters, if he invests in industry nobody will see it but if he opens a bridge everybody says ''see he is doing something'' even thought that bridge will cost the state 8 times the price of the actual bridge thanks to the moronic build-operate-tranfer model.

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This bridge is an exsample, the goverment didnt spend a single penny on its construction, a consotium of companies built it with their own money and got a guarantee of a certain amount of cars passing throught daily, if not then state pays the difference. Now the problem is the toll was set based on dollar but since it has risen it became ridiculously expensive meaning the bridge is basically empty and state is paying the company.
If you calculate the guarantee paid by state to the company in the 20 something years of operation we could have built 8 of such bridges, thats freaking ridiculous.

But whenever you talk to goverment supporters about this they say its a good investment and that we only oppose it because Erdogan did it.
And this is just one exsample how the ressources of the country are being depleted on show projects to please people who have zero idea about useful investments, many erdogan voters expect to become a superpower by putting concrete on random places, nobody actually questions how those a financed and what use they will give.
In Germany there are several independent instances within or outside of the parliament controlling all government spendings as „Bundesrechnungshof“. Is there any independent control instance in the Turkey?
 
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People's Republic of China (Electronics , Cars , Manufacturing , Heavy Industries, Nuclear tech , Space )

Russian Federation (Refineries , Oil and Gas , Culture, and Gymnastics, Nuclear Tech , Space, Metro city tech)

Islamic Republic of Pakistan (Agriculture, Live Stock , IT, Nuclear plants, Gold, Poetry, Coal, Dairy goods)

Republic of Kazakhstan (Oil and gas , Minerals)

Kyrgyz Republic (Gold)

Republic of Tajikistan (aluminum, electricity, cotton, fruits, vegetable oil, textiles)

Republic of Uzbekistan (Cotton, Raw goods , minerals , metals)

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  • Iran - (Oil and Gas, power, Agriculture, Pistacios, Carpets, Nano technology, Education)
  • Turkey - (Technology, Education , Electronics, Aerospace, Education, Culture )



RUSSIAN-CHINESE , banking is key for Turkey / Iran

Turkey's economy is extremely closely integrated with Europe. It is near impossible to decouple from it without a major fallout on the economy. It should take decades long well-managed process. For example, automobiles. Take out Europeans, Turkey has little automobile industry.

I believe Turkey's place is in the West. This does not mean it may not start to do business (more of it) with East Asia. But, it is better Turkey stay close to the West and get inspired by its political system.

Turkey is a middle eastern country with its face turned to the West. Take away the West, Turkey will become more of a Middle Eastern than Far Eastern.

Because there is this religion factor, which is incompatible with Far Eastern cultural DNA.

Hence, authoritarianism in the Middle East leads to underdevelopment. Unlike in the Far East. Our entire development fundamentals have been set up during authoritarian rule from Taiwan region to Korea and ( de facto near single-party state) Japan.
 
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i dont see nothing wrong with turkish economy...the crisis is artificially created by USA

Lol :rofl:
USA have little to do with Turkey economy crisis , trump simply add a little bit gasoline on burning house.
Turkey don’t have enough cushion to protect her currency , yet pick a fight against the US.
this Is like an egg crushing into solid rock.
 
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Likely a temporary issue?


Turkey
Building on Decades of Partnership
Turkey has partnered with Lockheed Martin for more than 25 years, primarily on the F-16 Fighting Falcon aircraft. Turkey continued that partnership when it joined the F-35 Lighting II program during the System Development and Demonstration phase of the Joint Strike Fighter Program.

As a program partner, Turkish industries are eligible to become suppliers to the global F-35 fleet for the life of the program. In total, F-35 industrial opportunities for Turkish companies are expected to reach $12 billion.


Turkey plans to purchase 100 of the F-35A Conventional Takeoff and Landing variant. Its unsurpassed technological systems and unique stealth capabilities ensure that the F-35 will be the future of Turkish national security for decades to come.
 
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We will officially get into stagflation very soon. It is already here but needs 1-2 months for economists to officially admit it.

Inflation will rise to around 30% with today's conditions. If FX would get even worse until the end of the year we may very easily cross the 40% mark and officially get into hyperinflation.

Or with little or no growth.. Or even negative growth.

In nominal values the growth is already set to be negative and with added inflation nominal gdp per capita could fall down to around $5000.

There are only two paths ahead of us: Growth or Austerity.

If we choose growth then the real interest rates will have to fall deeper into the negative territory.. Meaning a further collapse of Turkish Lira.

If we choose austerity, then we will get into a recession for at least 3-5 years, but at least inflation will be kept stable and Turkish Lira will be protected.


But like all the populist (aka socialist/communist) governments, Erdogan's gov will pick the growth path.


What if we let the ship burn out and begin from zero?
 
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Turkeys problem as I see it is summed up by majority of comments above, except the one that tries to shift the blame to "foreign powers".

It's a common tactic to shift the blame from own incompetency. I hope that the artificial induced growth through construction projects can be balanced out or we somehow get a soft landing. But RTE and AKP can only keep this up by borrowing more "black money" and building more, and try to cover up some of it through public lending.

To get out of an economic crises you can use construction sector to create jobs, but you need lasting solutions, and that's not what the construction sector is good at.

I think we will experience the same type of inflation we had back in the 90's. I don't see how it is possible to push through with construction. Unless you are capable of building firms and have competent staff in those firms that generate turnover through exports almost immediately.

Medical Tourism, Health Tourism, Service sector improvement, having our own "google"- like company that has a huge turnover and pays tax, or strong brands, as it is, most of the "strong" brands end up having foreign majority owners, I think only family owned companies are safe from such hostile takeover. (Koc, Sabanci, Yildizlar etc. vs. Turkcell).
 
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low innovation and industrial growth and IT sector is not strong for economic inflows .erdogan should resign and transfer power to new person who is more capable
 
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In Germany there are several independent instances within or outside of the parliament controlling all government spendings as „Bundesrechnungshof“. Is there any independent control instance in the Turkey?
I dont know but i dont think so.
 
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Wars in Iraq and Syria and Turkey's interventions.

Turkey's external debt has now ballooned to $467 billion at end-June 2018.
The problem is not about state debts but debts of private sector. The private sector would do well, but they have the problem of finding cheap and sufficient dollar in domestic markets in order to handle their business. The market is in panic right now of such a bleak possibility of private sector collapsing due to dollar becoming much more expensive. It basically means that their debts are increasing with respect to Turkish Lira. The inflation and increasing interest rates also amplify this fear. Also the state has to transform the economy into a model where it can generate dollars with much less dependency of getting credits from foreigners; that means producing high value products, burying your money into constructing will not solve this. AKP did this for years, now when the finance is gone ; it is time they face the consequences of depending on foreigner's money.
 
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I dont know but i dont think so.
Without any control, any government tends to do what it likes, resulting in misuse of public money and corruption.

In Germany, the parliament budget committee headed by opposition party controls government spending.Angela Merkel placing an order at her favorite company to build a bridge is unthinkable.Even in one party state Vietnam, every spending exceeded $10 million having to go thru an approval process of the parliament budget committee.
 
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Without any control, any government tends to do what it likes, resulting in misuse of public money and corruption.

In Germany, the parliament budget committee headed by opposition party controls government spending.Angela Merkel placing an order at her favorite company to build a bridge is unthinkable.Even in one party state Vietnam, every spending exceeded $10 million having to go thru an approval process of the parliament budget committee.
As said im not familiar with it, there must be some kind of regulation i have no clue but remember there is ways a way to go around any mechanism, Germany also isnt spared from corruption and mismanagement sometimes like BER airport or Stuttgart 21 for exsample.

Edit: so i did a quick google search, there seems to be the Grand National Assembly planning and budget comission which is supervising state spendings among others.
 
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  • Mother of all initiatives: trade, invedtment and tourism in local currencies with countries like Russia, China, Iran etc.

If this really happens, it would convert to real war. And I think it's inevitable. In order to change $ based monetary system, a war must be needed.
 
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Everything dependents on Turkish people. To overcome of this economic crisis, they must stop spending on unnecessary things such as automobiles and electronics. If it's urgent, they must go for Turkish made ones.

Secondly, they must stop investing their hard earned money on foreign currencies and exchange foreign currencies which are held by 'em as soon as possible.

Doing these will help our economy in the short term but for the long term our government must do many things.
 
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Everything dependents on Turkish people. To overcome of this economic crisis, they must stop spending on unnecessary things such as automobiles and electronics. If it's urgent, they must go for Turkish made ones.

Secondly, they must stop investing their hard earned money on foreign currencies and exchange foreign currencies which are held by 'em as soon as possible.

Doing these will help our economy in the short term but for the long term our government must do many things.
Welcome back bro,you will get a link.
 
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