Boosting Production and Exports to Prevent Recession: Turkish Vice President
Introduction
Turkish Vice President Cevdet Yilmaz said Friday that Ankara must continue its efforts to boost production and exports to keep the economy from sliding into recession even as it fights inflation.
Reversal of Unorthodox Policies
After the May elections, the government of President Recep Tayyip Erdogan began a radical reversal of unorthodox policies, including lowering interest rates, which triggered a lira crisis and led to skyrocketing inflation.
Moody’s Decision
Egypt reacted to Moody’s decision to leave its rating on “negative review”.
Countering Inflation
Since June, Turkey’s central bank reversed course and raised interest rates by 900 basis points to counter inflation, which jumped to a 25-year high of over 85% last year and is expected to rise again to a peak of over 60% in 2024.
Government’s Economic Plans
Erdogan said after a cabinet meeting this week that the government would cut inflation to single digits but not sacrifice economic growth and employment, Yilmaz repeated Friday’s comment.
Yilmaz said the government would announce its medium-term program in the first half of September, detailing its economic plans.
