Erdogan and the first step to "destroy the economy of his country"

Erdogan and the first step to "destroy the economy of his country"



19-08-2018 02:23 PM

In 1998, currencies in many emerging countries, ranging from the Thai baht to the Russian ruble, suffered a sharp decline, causing their inability to repay their loans. This resulted in a mass flight of foreign capital from these countries. The same with regard to Turkey?

Since the beginning of this summer, the Turkish lira has suffered from the decline and the decline of its value, and has suffered the Turkish economic in general with them, and resulted in increasing inflation in the country.

After GDP growth rates reached 7 percent in 2017, it fell back to 4 percent this year, and the dollar appreciated against the lira to a large extent.

Meanwhile, large companies in Turkey and the government in Ankara have experienced difficulties in repaying external debt services, while the value of the lira is sharply devalued. External debt has risen sharply, in a similar situation to Argentina and South Africa.

US-Turkish tensions

Under these conditions, tensions in US-Turkish relations cast a shadow over the Turkish economy, while Recep Tayyip Erdogan continued his insistence on 'leading his country towards the abyss', as the New York Post reported.

Erdogan has come to power under promises of a strong, transparent and prosperous government, which he has already achieved in his early years. But his obsession with power and more authorities, as well as his attempt to get rid of rivals, all have marginalized his previous achievements.

Regardless of the detention of the American pastor Andrew Brunson and the ensuing fallout in US-Turkish relations, Erdogan's path to prosperity seems to be heading for a dead end. Turkey's foreign debt is $ 217 billion, and Turkey has one of the biggest trade deficits in any emerging nation. Date.

The rate of inflation rocketed, even before the crisis of the Turkish currency last, losing more than half of its value in the past few months.

This coincided with US President Donald Trump imposing economic sanctions on Turkey for Erdogan's refusal to release the American pastor while threatening further sanctions.

Erdogan responded to Trump's move by boycotting iPhone phones and US electronics products, a move some US media consider 'nonsensical'.

As Erdogan strengthens his powers, since the start of the failed coup attempt in 2016, in which Turkish cleric Fathullah Gulen was accused of being behind them, the Turkish people are suffering and will continue to suffer as long as Egypt persists in political and economic obstinacy. He is always interested in this, and it is clear that he started the first steps to destroy the economy of his country, according to the American newspaper.

Falling from the top

Turkey has a strategic location between Asia and Europe and its mix of cultures with a population of 80 million, most of them young educated and secular in order to be one of the most attractive emerging markets for investment.

Since the beginning of the third millennium, the Turkish economy has been growing at an accelerated pace and economic growth has been three times higher than before, leading to a large wave of consumerism and a massive urban growth movement, the Telegraph reported.

As a result, there has been a huge inflow of foreign investment, leading to the development of two billion dollar projects (Istanbul's $ 11 billion Istanbul highway), Ankara-Istanbul highway, and the world's largest airport construction project.

Nevertheless, the storms of the Turkish economy began to rise. The boldness was arrogant, the debt levels rose fantastically, trade remained heavily dependent on the faltering eurozone, and the precarious and unstable conditions in both southern neighbors Syria and Iraq , The Turkish economy.

Erdoğan's growing "authoritarianism," especially his fundamental economic mistakes, such as his intervention in central bank policies, has not helped his policy against high interest rates, which has been a warning to both domestic and foreign investors.

Meanwhile, inflation was rising sharply, currently at about 16 percent, and while foreign investment was fleeing the country, it was selling the Turkish lira and buying the dollar from the market.

Trump's sanctions came to fuel the fire, while the US-Turkish economic debate contributed to the devaluation of the lira, losing about 35 percent of its value against the dollar since the beginning of the year.

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