IMF about Turkey

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3 years ago
Topics: Economy

Experts from the International Monetary Fund through a communication assured that the Turkish economy will grow by 5.8% in the next months of 2021 but that it will fall again for the year 2022, also through said statement they made a call to address the high inflation that the country is experiencing and low reserves.

They stated that as a reflection of the great rebound in economic activity in the second half of 2020, growth should be close to 5.8% for this year. But despite having high expectations about the country's economy, the low reserve fund, the high dependence on external financing and the deposits in national currency make Turkey vulnerable to economic shocks.

The economic imbalances, inflation and dollarization that Turkey is experiencing are thanks to the liquidity support that was driven by state banks and credit growth, this while the country was hit by the coronavirus outbreak.

The directors of the economic institution emphasized the importance of not depending on the central bank, simplifying the cooperative framework, rebuilding quality reserves and improving communication policies.

In addition to the two-digit fall in the Turkish currency (lira) in the last three years, only the first half of 2021 has fallen by 11%, while inflation is around 17%.

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