2020 … “the hardest year” for the Turkish economy

The strongest economic recession in the era of President Recep Tayyip Ward and Gan

Recent data from the “Turkish Statistics Institute” showed that the foreign trade deficit in Turkey jumped by 153.5 percent year on year last November, compared to the same month of 2019.

According to the data published on the institute’s website today and viewed by the Al-Hurra website, the external trade deficit increased from one billion and 986 million dollars to 5 billion and 33 million dollars, while the ratio of exports to imports decreased from 89.1 percent in November 2019 to 76.2 percent. Percent in November 2020.

Recent data indicate that the period from January to November 2020 increased the external deficit by 82.5 percent, from 24 billion and 844 million dollars to 45 billion and 344 million dollars.

While the ratio of exports to imports decreased from 86.9 percent in the period from January to November 2019 to 77.0 percent, in the same period of 2020.

These numbers come with the continuing repercussions of the Corona epidemic, and the continuation of closures in most Turkish states, in the worst economic recession in the era of President Recep Tayyip Erdogan.

The hardest years
Economic analysts attribute the aforementioned figures about the country’s external trade deficit to the economic policy pursued by the Turkish government in the past months, which insisted on keeping interest rates below the inflation rate in Turkey, which weakened the Turkish lira in the foreign exchange market and brought it to record levels. .

Turkish Statistics Institute data shows that annual inflation in Turkey witnessed a higher than expected jump, recording 14.03 percent in November 2020, its highest level since August 2019 due to the devaluation of the Turkish lira.

The decline in the Turkish currency, which has reached about 25 percent since the beginning of the year, leads to higher prices through imports in hard currency, according to data from the Statistics Institute. The producer price index rose 4.08 percent on a monthly basis last November, registering an annual increase of 23.11 percent, according to data.

The year 2020 is considered one of the harshest years that have passed in the Turkish economy, against the background of several political, military and economic developments and events that have greatly affected the Turkish lira’s exchange rate, and Turkish exports as well.

In addition to the political and military factors that have been linked to Turkey’s entry into several regional files, the Corona epidemic crisis had the most prominent role in terms of negative repercussions on the Turkish economy, which caused the number of tourists to Turkey to drop to the limits of 13 million tourists only during the first ten months of the year. Current, compared to about 45 million tourists in 2019.

Germany is the first in exports
During last November, according to the Turkish Statistics Institute, Germany ranked first in exports, reaching 1 billion and 515 million dollars, followed by the United Kingdom with 94 billion dollars, Iraq 953 million dollars, the United States 905 million dollars, and Italy 800 million dollars. .

Exports to the first five countries accounted for 32.7 percent of the country’s total exports, according to the “Turkish Statistics”.

As for imports, Germany ranked first as well, and Turkish imports from them in November amounted to 2 billion and 352 million dollars, followed by China with 2 billion 238 million dollars, Russia with 722 million dollars billion, Switzerland with 1 billion 570 million dollars, and Italy with 952 million dollars, to form The aforementioned figures are 41.8 percent of total Turkish imports, according to “Turkish Statistics”.

Economic sentiment is declining
Two days ago, the data of the Statistics Institute had indicated that the indicator of economic sentiment in Turkey fell 3.5 percent on a monthly basis in December to 86.4 points, as a jump in the pace of new cases of Coronavirus prompted Ankara to impose curfews and lockdown measures.

Earlier this year, the index reached a record low on the background of measures to combat the Corona virus, and rose for six consecutive months with easing restrictions before returning to fall in November.

The last time the index crossed the 100-point barrier was in March 2018, and according to analysts, any reading above the percent indicates optimistic expectations, and below it leads to pessimism.

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