Sub Categories: » HOMEPAGE / OPINION/ ERDAL SAĞLAM
Tuesday, September 13 2011 , Your time is 15:58:00
Together with the expectation of a change in the cabinet, the bureaucracy in Ankara seems to have put everything on hold. One can particularly observe the rise of complaints from big private sector companies that “things have not been working in the bureaucracy for a long time.”
On one hand, there is the increase in economic fragility; on the other, there is the presidential election to be held based on the new administrative system. The government will have to decide on its economy policy amid this controversy.
German Chancellor Angela Merkel will be persistent, it seems, on her refugee policies despite the reactions. Efforts to advance German-Turkish relations despite the recent tension are also continuing.
Turkey’s recent inflation figures gave us all a positive surprise. However, the general consensus in the market is that it is highly likely that we saw the lowest annualized inflation rate as of the end of November for a while, and that inflation will increase from now on.
Growth estimates for 2016 are continuing to drop as the year-end approaches. While international agencies continue to lower Turkey’s growth estimates, it is now widely expected that growth will dip below 3 percent.
Slowing growth rates and the rapid increase in foreign exchange rates have demoralized Turkey’s business world. The current state of affairs in the economy not only troubles the banking sector, but also the entire business world, primarily the indebted real sector.
With the Turkish Lira’s devaluation against the dollar continuing to accelerate, a new record is broken almost every day. The expectation of the markets is that the devaluation of the lira will not stop soon; in fact, it will only continue.
The troubled air that has been felt for some time in the economy is not dispersing. While the biggest and most essential issue in the economy seems to be slowing growth, the depressed business world is not cheering up.
A milder course has been followed since the beginning of the week, but expectations on foreign exchange rates are worsening. We see that the estimates of foreign analysts, especially on the Turkish Lira value of the U.S. dollar exchange rate, are increasing.
The fever is high on the exchange rates. The Turkish Lira hit a record low against the dollar and the conviction that this will continue is becoming more deep-rooted.
Daily News - Follow us on