Growth 1.8 percent; What is the economic outlook?

Prof. Koç University faculty member. Dr. Selva Demiralp, In the analysis, he wrote about the growth indicators for 2020 “Turkey grew by 1.8 percent in 2020, becoming one of the countries with the most positive economic growth during the pandemic. In order to compensate for these pressures, the legacy of selling the Central Bank’s reserves by 2021 has become more fragile. The economic outlook will be shaped by how these weaknesses are addressed in the future. “ made an assessment.

Demiralp wrote in the Mature Report in the article,It is true that the transition to orthodox policy in November provided much-needed relief and eased tensions in financial markets. However, long-term interest rates have been on the rise since then. This trend is partly due to a 10-year increase in US interest rates (blue line, right arrow). The overall impact of President Joe Biden’s $ 1.9 trillion stimulus package and vaccine proliferation has boosted inflation expectations in the United States. These expectations, especially in the last week, are reflected in long-term interest rates and have a negative impact on the TL. “ expressed his views.

Demiralp used the following expressions in his article:

“Another reason for the upward trend in long-term interest rates may be the general skepticism about the sustainability of the current policy position. Although Central Bank Governor Naci Agbal and Finance Minister Lotfi Elvan have shown great harmony so far, markets are still worried. Hungary and New Zealand have made relatively limited responses to similar statements in Turkey, while exchange rate volatility is on the rise. points to the greater economic impact of political pressures in weak environments. “

CLICK HERE | TÜİK announced: Turkey’s economy grew by 1.8 percent

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