Turkey’s official statistical institute reports decreases in the unemployment rate. Nonetheless, experts argue that the data is unreliable and simply represents the government’s attempt to whitewash the economy’s failing performance.
The pandemic-induced economic crisis and subsequent contractions in global demand will worsen Turkey’s economic outlook, as the AKP’s populist policies and unorthodox approach towards economics pose an increasing risk to the Turkish economy. As a direct result of the government’s intervention in market mechanisms, chronic inflation and the continuous devaluation of the Turkish lira will constitute a nearly insurmountable challenge for the AKP in the short-term.
The COVID-19 pandemic and its economic fallout appear to have compounded Turkey’s economic woes. As trade falls, tax revenue decrease, and the Turkish lira tumbles, the Central Bank appears to be near out of options