İYİ Party leader Meral Akşener has slammed President Recep Tayyip Erdoğan for "giving the youth a massive prison," as she commented on the unemployment figures and the economy. "You gave them unemployment, hopelessness and depression," Akşener said. Your gift to the youth is a country that they don't feel belonging to and that they can't breathe in," she added.
Turkey’s currency has tumbled further, hitting another record low. The Turkish lira dropped to 7.50 against the dollar on Sept. 16 after credit rating agency Moody's downgraded the ratings of 13 Turkish banks.
Moody's Investors Service on Sept. 15 downgraded 13 Turkish banks, days after Turkey had its debt rating cut deeper into junk by the company. The outlooks on the long-term deposit and debt ratings of all the Turkish banks rated by Moody's remain negative, in line with the negative outlook on the sovereign rating.
Turkey's record low credit rating on Sept. 11 will not improve unless the government reforms economic policies drastically, Turkish economist Mahfi Eğilmez said. Finance giant Moody's included "Turkish officials' inadequate response to financial problems" as part of the items on a negative outlook for investment.
Turkey had its debt rating cut deeper into junk by Moody’s Investors Service, as President Recep Tayyip Erdoğan dismissed credit agency ratings. The sovereign credit rating was cut to B2, five levels below investment grade and on par with Egypt, Jamaica and Rwanda, Bloomberg reported. “Do what you want to do, your ratings are of no importance," Erdoğan said in response.
Turkey's unemployment rate rose to 13.4 percent. and participation edged up in the May-July period in which a coronavirus lockdown was lifted and a ban on layoffs remained in place, data showed on Sept. 10, painting a clearer picture of the pandemic's fallout.
So far, the mutual “controlled crisis escalation” policy of Athens and Ankara has somehow worked. It has “worked” in the sense that there has been no war, but tensions have risen higher and higher. But what if things get out of control within this “controlled crisis escalation” policy?
The Turkish Lira hovered near its historical low against the dollar on Aug. 31 as the Turkish statistical authority revealed a contraction of 9.9 percent in the economy. The currency has lost about 19% against the greenback this year.
Turkey's economy shrank by 9.9 percent between April and June compared to the same period last year, Turkish Statistical Institute (TÜİK) reported on Aug. 31. While less precipitous than expected, the drop in gross domestic product (GDP) was still historic compared to the first quarter at a seasonally and calendar-adjusted 11.0 percent, according to TÜİK.
IMF Managing Director Kristalina Georgieva said that Turkish economist Ceyla Pazarbaşıoğlu would be serving as the head of the IMF's Strategy, Policy and Review Department. Georgieva said that Pazarbaşıoğlu had "profound knowledge and significant experience on how to design policies to help people especially in emerging markets and low-income countries."
The World Bank has released a report on Turkey saying that the country's economy is projected to face a difficult 2020, including a projected increase in poverty. "Important sectors in the Turkish economy are highly vulnerable to COVID-linked economic strains, which could further lower employment, reduce labor force participation, and increase the poor population by 1.2 million in 2020," the report said.
Turkey is poised to produce a record amount of gold this year and the Central Bank will probably buy all of it at prices near record highs, Bloomberg reported on Aug. 24. The value of its gold reserves surged to an all-time high in the week through Aug. 7, only to drop 5 percent a week later, the biggest decline in five months. That effectively mirrored the moves in market prices over the same period.
Those who are ruling the country are spending so much energy on blaming vague foreign powers for all the wrong and bad management. If they could have channeled this energy to understanding the problems of the country, then we would have gone a long way and truly would have made these “foreign powers” envious of ourselves.
Main opposition CHP MP Öztrak has said that some people had made substantial gains last week by buying dollar at a relatively low exchange rate level amid speculations about Erdoğan's announcement of "good news." “Who knew ahead what this 'goods news' was about and took a position accordingly? Who earned millions in a just a couple of days?" Öztrak asked on Aug. 24.
For hotels across Turkey, 2020 has become a fight for survival, with the outcome crucial for a tourism industry which earned $35 billion in 2019 and whose losses this year have hit the country's foreign exchange earnings and contributed to the lira falling to record lows against the dollar. Ankara has tried to salvage the sector with intensive diplomacy and a healthy certification program meant to lure tourists.