The Turkish lira is trading near a record low against the dollar, consumer price inflation stands at 16.6 percent, the highest in emerging markets and more than a quarter of the country’s youth is unemployed.
Turkey’s government should implement a comprehensive programme of structural economic reforms to deal with inflation, high interest rates, the lira’s weakness and unemployment, said Orhan Turan, head of the Istanbul-based Turkish Enterprise and Business Confederation (TURKONFED).
It would be wrong to attribute what happens to the economy only to the COVID-19 pandemic, Turan said at an annual conference of the organization at the weekend.
He called for urgent measures to correct economic imbalances, saying Turkey is not taking the steps needed to ensure that growth in the economy is sustainable.
Turan also pointed to a deterioration in the rule of law, saying it was having a wider effect on politics and society. Reforms to the justice system should be prioritized, he said.
“Belief in the rule of law is in decline, discrimination and hate speech is widespread, and our relationship with reality is deteriorating,” Turan said.
A reversal of that trend is the only way to prevent events such as lynching attacks on political party leaders and attacks on the district offices of political parties, he said.
TURKONFED represents over 40,000 companies under 30 federations and 274 associations.
The raising doubts about the ability of the Turkish economy to recover, and the doubts about the political and security stability are the main reasons behind the fall of the Lira.
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