Real Turkey Channel frontperson explains how lower American interest rates and forecasts of lower energy prices aid the recovery in the Turkish economy.
Turkey’s economic stabilization program launched 6 months ago with the re-appointment of Mehmet Simsek as Finance and Treasury minister is already making progress in terms of restraining run-away loan growth and channeling savers from FX to TL deposits. Foreign loans and investment have stabilized the currency, as budget deficits at around 3% of 2023 GDP should also count under the achievements of the economic program.
Inflation will not drop until the second half of 2024, but current account deficits are under control, while Central Bank has accumulated over $40 bn in FX reserves to defend the current crawling peg.
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