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Erdogan to hardly save economy without external support
Erdogan to hardly save economy without external support

Turkey is unlikely to cope with the second wave of the recession without the IMF’s help. For several years, the country was trying to recover after the first recession and practically managed to do this. However, the government’s approach changed after the victory of Recep Erdogan in the last presidential elections. Just after the elections, the economic destruction became even more rapid.  Besides, the situation was deteriorated by the coronavirus pandemic. The first signs of the shattered economy are massive unemployment, a slump in the tourism sector, and extreme volatility in the national currency. Of course, Recep Erdogan was planning to introduce support measures. However, they were not implemented because of the virus outbreak. Moreover, the government allocated just $15 billion that was not enough to stabilize the economy. Turkey will hardly survive the crisis without external support. Ankara announced several times that it would not apply for loans. Nevertheless, it has asked for the IMF assistance 19 times already. However, it would be a humiliation for the Turkish president who is a firm advocate of sovereignty. "An IMF deal would be a last resort," consulting firm Capital Economics said in a note. "Erdogan is likely to exhaust all other options before seeking a bailout." Moreover, Erdogan's Justice and Development Party lost control of many of Turkey's largest cities, including Istanbul and Ankara, due to a downturn in the economy. 

เผยแพร่: 2020-05-28 15:00:25 UTC
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