Turkey crisis: Overturning

Cheap loans and huge construction projects have fueled the Turkish economy. The key figures show that investors lose confidence is only logical.

Turkey crisis: Overturning
  • Page 1 — overturned
  • page 2 — cheap money from abroad
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    Where is she, crisis? Those who only look at DasWirtschaftswachstum, do not immediately discover m. Last year alone, Turkish economy grew by more than seven percent – growth rates that meistenwestlichen industrialized countries can only dream of.

    Even in crisis year 2016, when President Recep Tayyip Erdoğan was almost taken out of office, Lagdas growth was still more than three percent. For LaufendeJahr, industrial country organisation OECD expects an increase of more alsfünf percent. But growth is expensive. "It is einbinnenkonsumgetriebenes growth, which is mainly due to loans finanziertwurde," says Edwards Ya, professor of economics at University of Konstanz.

    StaatlicheAusgabenprogramme and subsidized loans mainly driven for construction industry got economy. A Megaflughafen in Istanbul, new neighbourhoods, bridges, mosques: Istanbul has experienced a boom in recent years. The flourishing economy is Erdoğan's PolitischeVersicherung. Since taking office, economic performance per Kopffast has tripled.

    But a booming economy has its price: when demand for goods and services rise and se are scarce, prices rise – that is called inflation. That's what happened in Turkey for months. In fact, Turkish central bank has set itself goal of an increase in prices of five percent a year. But in fact it is now at more than 15 percent, highest value since 2004.

    At same time, emerging countries such as Turkey are particularly closely monitored by international investors, especially when indicators such as inflation are changing. The political environment is also crucial for your investment decisions. If you lose confidence in a currency and sell it on a large scale, it atones in value. That is exactly what has happened in recent months. Since beginning of years, Turkish lira has fallen by around 45 percent. At end of July, price of Turkish central Bank did not continue to raised, as is generally expected.

    Traditionally, rising Zinsenein are means to curb inflation. Even now, key interest rate Beirekordverdächtigen 17.75 percent to bring inflation that has been rising for months under control. The Turkish central bank has increased interest rates by three outcome tenths in last three years undzuletzt in May after a long delay in order to curb inflation and price decline of lira. " However, se interventions were always too late and too timid, so that dieInflation continued to rise and structural problems in Turkish economy continued to persist, "says Yacil.

    Investors are insecure because y are concerned about political stability of country – a typical emerging phenomenon. They doubt notably independence of central bank. President Erdoğan has repeatedly weared against HöhereZinsen and alleged international Zinslobby. Shortly after SeinerWiederwahl president, he secured exclusive right to appoint DenPräsidenten to central bank personally.

    Date Of Update: 15 August 2018, 12:00

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