Turkish Economy Grew Last Year Despite the Corona Crisis

In the closing quarter of last year, the Turkish economy grew faster than any other country, except for China.

 

The Turkish economy also improved throughout 2020, despite the blow of the large disappearance of tourism due to the corona crisis. Government support measures were beneficial.

In the closing quarter, the gross domestic product (GDP) growth was 5.9 percent, bringing growth in the whole of 2020 to 1.8 percent. Last year, the Turkish government urged banks to be generous with loans so that businesses and consumers could sit out the corona crisis.

Simultaneously, there is still very high inflation in Turkey, even fueled by the growth boost. This does mean that Turkish exporters can benefit because they can supply relatively cheap products, experts indicate. The tourism sector can also grow again if the number of vaccinations in Turkey and European countries increases.

Turkish industry, on the other hand, is suffering from inflation as they have to pay more and more for their raw materials from outside.

The International Monetary Fund (IMF) expects the Turkish economy to grow by 6 percent this year. However, the fund did warn that the risks to the Turkish economy, which already existed, have been exacerbated by the corona crisis. For example, central bank president Naci Ağbal must try to control inflation without slowing growth too much and guard against rising unemployment.

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