Arab Today, arab today turkeys troubles deal new blow to stumbling economy
Last Updated : GMT 09:28:17
Arab Today, arab today
Arab Today, arab today

Turkey's troubles deal new blow to stumbling economy

Arab Today, arab today

Arab Today, arab today Turkey's troubles deal new blow to stumbling economy

End of ceasefire with Kurdish rebels
Ankara - AFP

The end to a ceasefire with Kurdish rebels and political uncertainty after inconclusive June elections are compounding already mounting problems for Turkey's stuttering economy, analysts say.

The resumption of regular attacks by Kurdistan Workers' Party (PKK) rebels in the southeast of the country as Turkish jets bomb their positions in northern Iraq has brought back memories of the 1990s when the country was often in economic, political and security chaos.

The deterioration of the security situation is already impacting Turkey's tourism sector, which has boomed in recent years to become one of the sources of the improved economic prosperity under the rule of President Recep Tayyip Erdogan.

Even more disturbing for investors is the spectre of political uncertainty, with the country still without a government after inconclusive June 7 polls and snap elections still a possible scenario.

"The resumption of violence with the PKK and the chance of a new election -- which may not unblock the political situation -- will without doubt have an impact on state expenditure and interest rates which will have to go up," and Inan Demir, chief economist at Finansbank in Istanbul.

The looming risk of early elections "weighs on the investment climate", he added.

Erdogan, prime minister from 2003-2014 and president from 2014, owes his popularity to bringing a new economic prosperity to millions of ordinary Turks, many of them religiously-conservative small business owners, who form the core of his support.

Many Turks credit Erdogan and the ruling Justice and Development Party (AKP) for rescuing the country from the mire of its 2000-2001 financial crisis.

Erdogan repeatedly boasts of presiding over an economic miracle and is now proclaiming a target for Turkey to become one of the world's top 10 economies by 2023, the 100th anniversary of the foundation of the modern state.

But growth slowed to 2.4 percent last year while the Turkish lira suffered massive depreciation and the Istanbul stock market has lost 20 percent in value since the start of the year.

And the government's growth objective of 4 percent for 2015 is going to be difficult to reach, according to Demir.

- 'Performed dismally' -

Turkey's key tourism sector was hoping for new growth this summer, particularly with tour operators expected to shift tourists from Tunisia particularly after the deadly attacks on tourists in the north African country.

But regional instability meant tourist revenues slumped 9 percent in the first six months of 2015 from the year earlier. Tourism from Russia has been particularly hit as the country battles its own economic crisis.

The negative tendency was also seen in exports, which fell to $73.3 billion from January-July compared with $80 billion in 2014.

William Jackson at Capital Economics in London said Turkey's exports "have performed dismally so far this year", down 8.0 percent compared to the first half of last year.

Even taking into account exchange rate movements, "Turkish exports have been struggling for some time" and are being held back by "underlying competitiveness problems", he said.

Analysts say that problems in the tourism industry and the country's large balance of payments deficit are the problems which are going to haunt Turkey in the months to come.

"In the period to come, there is no chance of a respite on these two points," said economist Gungor Uras in the Milliyet daily.

With analysts speculating that Erdogan fancies his chances in early elections, the fears of instability are also not likely to go away fast.

"The thing that foreign investors hate the most is political instability," said Serkan Demirtas, political analyst and columnist for the Hurriyet Daily News.

"Turkey owed its miracle to the arrival en masse of fluid assets. If this is no longer possible then clearly there is a risk for the economy," he added.

Erdogan however seems not unduly worried, describing the situation as one of "transient" nature.

"I don't envisage serious economic difficulties," he said in comments published this week.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today turkeys troubles deal new blow to stumbling economy Arab Today, arab today turkeys troubles deal new blow to stumbling economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today turkeys troubles deal new blow to stumbling economy Arab Today, arab today turkeys troubles deal new blow to stumbling economy

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq's Barzani isolated by his drive

GMT 04:36 2017 Tuesday ,24 October

Iraq's Barzani isolated by his drive
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU targets German carmakers

GMT 05:41 2017 Tuesday ,24 October

EU targets German carmakers
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today Sherine Reda frustrated of latest terrorist attacks

GMT 09:03 2017 Monday ,23 October

Sherine Reda frustrated of latest terrorist attacks
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:12 2017 Saturday ,21 October

Donia Abdel Aziz aspires to return to cinema

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 08:06 2017 Tuesday ,24 October

Second Palestinian mobile provider enters Gaza

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday