Not so long ago, Turkey was one of the most successful economies in the world. However, during the presidency of Recep Erdogan, the country’s economy fell off a cliff.
This financial collapse was caused by a number of factors, including the dictatorship and mounting pressure on the national central bank. Moreover, Erdogan allowed his relatives and friends-oligarchs without special education to occupy influential positions, including the post of the Finance Minister.
Erdogan is trying to distract the population from real problems conducting military campaigns and appealing to patriotism. However, Turkish citizens do not believe eloquent speeches broadcasted on various TV channels. The fact is that people do not even have enough money to buy food.
At the same time, the national currency is still hitting new record lows. In the last three months, the Turkish lira slumped by 15% against the major currencies. Moreover, since the beginning of the year, the lira lost 25%. Compared to 2008, it tumbled by 85% against the US dollar. Notably, all Turkish debts are denominated in the US dollars. Total Turkish external debt was estimated at $421 billion, with $128 billion due this year. Turkey’s economy will hardly withstand Erdogan’s foreign policy as he has managed to ruin relations with the US, the EU, and even with Russia. Moreover, the European Union threatens to impose sanctions because of Turkey’s geological exploration in the waters of Greece and Cyprus.
