Home
[size=36]Global investment group: Turkey is heading towards "economic collapse"[/size]
Economy | 03:04 - 10/07/2019
-
Turkish President Recep Tayyip Erdoğan risks pushing his country towards an economic collapse similar to that in some Latin American countries under populist regimes, a global investment management group has revealed.
Ashmore, the London-based Ashmore Group, said that although the Turkish economy is more diversified than its oil-dependent Venezuelan counterpart, Turkey is currently on a path towards " the damage".
According to Jean Dehn, head of research at Ashmore, Turkey will take a number of actions targeting the private sector, especially with the deterioration of the "macroeconomic" environment.
"The problem is that even if Erdogan wants to go back now, the cost of policy will be very high, and the longer the change, the greater the cost."
"This is so rare as politicians who go wrong on their positions retreat and end up in a big bind."
Dhan's comment came after Erdogan shook financial markets in the country by dismissing the central bank governor as early as Saturday, without explaining the reasons.
Following the decision, the Turkish lira depreciated against the dollar, and Turkish government bonds fell.
The Turkish economy is in dire straits. In 2019, it saw its first recession in 10 years. Inflation was 20 percent, while the Turkish lira lost about one-third of its value against the dollar in 2018.
Dehn made a number of "mistakes" made by Erdogan's government and may cost the country much more in the future:
1. Instead of identifying the causes of the underlying economic problem , The Turkish government decides to face the symptoms of the problem, such as inflation, slowing growth and weak currency.
2. Erdogan's government has led bad monetary and foreign policies, failed to develop domestic markets and improved saving rates.
3 - The Turkish government always blames the other instead of itself, which makes investors and companies in a situation of concern, considering that Erdogan will need more "scapegoats" to suspend the economic deterioration of them.
4. As the economy recedes, investors begin to take action to defend their wealth, leading to capital flight and falling investment rates.
"In the end, the Turkish government will not find other sources to finance its projects and improve its growth rate, which means it will sink into a crisis," said Jean Dehn.
Turkish President Recep Tayyip Erdoğan risks pushing his country towards an economic collapse similar to that in some Latin American countries under populist regimes, a global investment management group has revealed.
Ashmore, the London-based Ashmore Group, said that although the Turkish economy is more diversified than its oil-dependent Venezuelan counterpart, Turkey is currently on a path towards " the damage".
According to Jean Dehn, head of research at Ashmore, Turkey will take a number of actions targeting the private sector, especially with the deterioration of the "macroeconomic" environment.
"The problem is that even if Erdogan wants to go back now, the cost of policy will be very high, and the longer the change, the greater the cost."
"This is so rare as politicians who go wrong on their positions retreat and end up in a big bind."
Dhan's comment came after Erdogan shook financial markets in the country by dismissing the central bank governor as early as Saturday, without explaining the reasons.
Following the decision, the Turkish lira depreciated against the dollar, and Turkish government bonds fell.
The Turkish economy is in dire straits. In 2019, it saw its first recession in 10 years. Inflation was 20 percent, while the Turkish lira lost about one-third of its value against the dollar in 2018.
Dehn made a number of "mistakes" made by Erdogan's government and may cost the country much more in the future:
1. Instead of identifying the causes of the underlying economic problem , The Turkish government decides to face the symptoms of the problem, such as inflation, slowing growth and weak currency.
2. Erdogan's government has led bad monetary and foreign policies, failed to develop domestic markets and improved saving rates.
3 - The Turkish government always blames the other instead of itself, which makes investors and companies in a situation of concern, considering that Erdogan will need more "scapegoats" to suspend the economic deterioration of them.
4. As the economy recedes, investors begin to take action to defend their wealth, leading to capital flight and falling investment rates.
"In the end, the Turkish government will not find other sources to finance its projects and improve its growth rate, which means it will sink into a crisis," said Jean Dehn.
» Distributing more than 900,000 “biometric” voter cards in Diyala
» Southern Electricity is implementing a massive campaign to remove bottlenecks and introduce secondar
» Kirkuk's "Achilles' heel" since 2003: A European report warns of escalating tension and suggests sol
» They live and disappear.. Iraq fears the “messages” of kidnapping foreigners and fears the reluctanc
» The files of the elections and the strategic agreement are on the table of Al-Maliki and the America
» Iraqi efforts to construct 36 rainwater dams to confront drought
» Iraq once again praises the results of the security agreement with Iran
» Parliamentary Finance discusses with the Minister of Planning and the governors the reasons for the
» Obelisk Hour: The general amnesty and Kirkuk are confirmed in the political agreement paper
» The Commission announces important dates and responds to concerns about cybersecurity
» The Baghdad International Book Fair records a distinguished Arab and foreign presence
» Before the OPEC+ meeting tomorrow... Iraq comments on the price of $100 per barrel
» Parliamentary energy calls for revealing the fate of compensation payments after Türkiye announced t
» Agriculture is reassuring: there is no scarcity of crops and the local product is available to meet
» In celebration of National Day.. The Sudanese issues a traffic order regarding the Green Zone
» Parliamentary dissatisfaction with the lack of school services in the southern governorates
» Parliamentary Committee: Food security will be achieved due to promising rainy season forecasts
» Al-Maliki to the US Ambassador: Iraq aspires to hold elections capable of providing services to the
» In the document... Education extends the working hours of all universities and regulates the attenda
» Iraq offers Russia participation in the development road project
» Al-Ghais: OPEC is optimistic about demand... and the lack of investment puts energy security at risk
» A senior American official reveals the value of Washington's remaining aid to Kiev
» A politician reveals the reason for Al-Halbousi’s silence regarding the Khor Abdullah file
» Rights: Al-Halbousi’s silence regarding Khor Abdullah confirms his complicity with Kuwait
» The US Army transports 95 tankers of stolen Syrian oil to northern Iraq
» Parliamentary Integrity opens a corruption file worth 38 billion dinars in one of the security servi
» Al-Ittihad: We have no relationship with the Labor Party, and Turkey provides pretexts to bomb Sulay
» The army relies on "fixed points" to secure electricity lines coming from Baghdad towards Diyala
» The popular movement calls on the Kurdish forces to state their position on canceling the Khor Abdul
» Until further notice.. Postponing the winter agricultural plan in Anbar
» Kirkuk rejects Barzani's authority.. The people's desire "fails" the region's plans
» Parliamentary Integrity reveals details of 3 important laws to combat corruption
» Baghdad Governorate announces the achievement of advanced completion rates at Al-Nahrawan Hospital a
» Al-Araji discusses multiple files with the advisor to the President of the Republic
» State of law: For this reason, the implementation of the federal budget law was delayed
» The coordination framework defends Al-Abadi after he was attacked by MP Muhammad Nouri
» Transportation is moving to inventory accounts for its ineffective formations
» The judiciary sentences a political analyst who defamed the Prime Minister
» In the document, the Central Bank gives exchange companies 6 months to implement this order
» Iraq is among the cheapest countries in the world for the price of gasoline
» “Retaliatory” measures against money changers and looming demonstrations.. How did the Central Bank
» Disagreement in the results of counting and sorting.. A political front speaks of a “serious defect”
» An “unreasonable” and proposed measure to resolve the Kurdistan employee salaries crisis: The author
» The dollar is at a new high amid strong data
» Erbil is "desperate" to export oil through Ceyhan and companies are besieging the region with "debts
» Again.. the dollar is flying high against the dinar, recording 158 thousand
» "Sumer" and "Akd" were launched on the way... Iraq is planning to build a fleet of giant tankers to
» Video: Karbala Statistics Department talks about conducting an electronic population census and the
» American report: Because of Iranian influence, Iraq cannot be a partner with Washington
» Experts: Sudanese demand that the international coalition leave Iraq is “far from reality”
» Iraq and Russia conclude a memorandum of understanding in the field of combating corruption and prev
» Media and communications call for intensifying efforts to show the importance of the National Day an
» In pictures: Arab artists arrive in Baghdad to participate in the Iraq International Festival
» Planning announces the preparation of a new electronic system for classifying contracting companies
» In pictures...rare documents regarding Iraq's entry into the League of Nations
» Deputy: 11 countries want to invest in the path of development...the number will reach 50 soon
» Syria accuses America of stealing its oil and transporting it to its bases in Iraq
» Al-Sudani: Iraq will remain a pillar of stability in the region and the world
» There was much disagreement about it and it was chosen 4 years ago.. What do you know about Iraq’s N
» After Sunday's attack, a huge security operation in Turkey against the PKK included 18 provinces
» The Ministers of Interior and Defense and senior security leaders congratulate the Alsumaria Foundat
» The rise in dollar exchange rates in Iraqi markets today
» On Iraqi National Day.. Washington re-introduces the slogan “comprehensive partnership” with Baghdad
» Foreign Affairs: Disagreements over many issues with Türkiye, especially water
» An economic expert proposes a "magic solution" to avoid the crisis of the high price of the dollar
» Famous Bank: The Middle East is going through a golden age
» Kurdistan's violations... began with corruption deals. Will they end with obedience and loyalty to I
» In the document, the Central Bank gives exchange companies 6 months to implement this order
» Rusafa Municipality: A move to automate real estate transactions and building permits
» Baghdad and Moscow concluded a memorandum of understanding in the field of combating corruption
» Transportation forms a committee to analyze immobile bank accounts in the ministry
» Decisions of the 29th session of the Ministerial Council for the Economy
» Compulsory conscription will be absent for a long time this time.. The idea of a “security contrac
» The Ministerial Council for the Economy takes a package of decisions regarding mills... and raising
» An Iraqi company unveils a fertilizer that increases crop productivity by 40%
» American Foreign Policy: Washington must set red lines for the Patriotic Union of Kurdistan
» A new law changes Iraq's strategy to combat drugs
» Parliamentary Finance announces its agreement with the Minister of Planning to resolve the issues of
» Parliament adjourns its session until next Wednesday
» Advisor Mazhar Saleh: Sovereign guarantees encourage the business environment in Iraq
» Exchange companies under categories (A, B)
» After months of suspension and years of disputes.. What is the Iraqi-Turkish oil line?
» The Central Bank denies the scarcity of cash liquidity and describes its currency and gold reserves
» An economic expert details the cash conversion cycle of the Iraqi dinar
» 98% of the factories of the largest industrial city in eastern Iraq have stopped
» After procrastination and procrastination.. What are the implications of Turkish approval to resume
» Concerning Khor Abdullah... collecting parliamentary signatures demanding that the government take t
» The Judicial Council reveals the preparation of a law for general amnesty for women and juveniles
» Al-Araji: Iraq is continuing to implement the provisions of the joint security agreement with Iran
» The President of the Republic receives the credentials of the ambassadors of four Arab and foreign c
» Transport announces the start of the second phase of operating the Grand Welcome Square
» “Secretly”.. Revealing the agendas of Masrour Barzani’s visit to Israel
» Al-Halbousi summons a thousand soldiers to protect his homes in Anbar
» Al-Iqtisad News publishes the recommendations of the World Investor Day Conference
» Commerce sets the date for starting the first step of electronic transformation
» The Minister of Agriculture directs the release of funds for compensation for the loss of land
» Labor announces the suspension of restrictions on 448 beneficiaries of the full-time employee’s sala
» The Iraq Stock Exchange announces trading indicators for shares of joint stock companies for the mon