It is said that Turkey’s economy has grown recently and it is proud of it. Despite this, the effect of this growth on the people is not felt, on the contrary, there is poverty. So why?
Despite the unprecedented decline in purchasing power in Turkey, the economy continues to grow. This also comes to mind “Why isn’t the public feeling this growth?‘ begs the question.
Economist and Typewriter1984 Editor-in-Chief Enes Özkan, answered this important question for us that has been on our minds:
“The thing is, the economy isn’t actually growing that much.”
“When we look at the last 5 years of the AKP, the average economic growth is 3.2%, around 3.3%. It may be 3.4 or 3.5 with the data of this last quarter, but Turkey’s already both population growth and its general trend more or less -if we start it since the foundation of the Republic- it is at the level of 5%.
Mistake often actually grown by more than 5% and a country that has performed relatively well compared to similar developing countries. During the AKP period, this was still around 5%.”
“So there was not such a big success, but when we look at these last 3 years, we see a big slowdown in this economic growth.”
“The announced rates such as 10%, 5%, 20%, 19% are actually short-term rates. It had shrunk a lot with the pandemic and the wrong policies of the government. Therefore, when the market opened suddenly, such rises were experienced in the world economy.
We call this the base effect. In other words, if the base is a lower figure, even a small growth can be reflected higher. That’s why people don’t feel it. What citizens feelInflation due to this growth and the general increase in both logistics and food prices in the world!”
Source: Economist and Typewriter1984 Editor-in-Chief Enes Özkan