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In numbers. Reassuring signs boost confidence in Turkish economy

12-11-2020 | admin

Indicators of the Turkish economy over the past months show that any decline in currency figures, foreign exchange reserves, or foreign trade, is due to emergency circumstances and not structural problems in the domestic economy.

A speech by Turkish President Recep Tayyip Erdogan on Wednesday on the country's public finances and the future of the domestic economy pushed the lira up to an average of 7.8 against the dollar, compared with 8.52 pounds at the beginning of this week's trading.

** Lira path

Erdogan said today before the parliamentary bloc of the Justice and Development Party (AKP) in Ankara, that the recovery of the Turkish lira against foreign currencies, following the appointment of a new president of the central bank and a new minister of the treasury and finance, is an indication that Turkey is on the right track.

While observers believe that the fall in the lira exchange rate during the past period has had a negative impact on the local economy, one of its most notable advantages now is linked to the increased competitiveness of Turkish exports.

Major economies from China and the United States have always been looking for a low currency to increase the competitiveness of their exports, which President Donald Trump has demanded in 2019, that the dollar should weaken to boost the competitiveness of his country's exports.

Due to improved confidence in the Turkish economy, and a return to the acceleration of the fiscal and currency trajectory, Erdogan today confirmed that "Turkish assets have been registered for $2.3 billion by international investors in recent days."

In 2020, turkey's economy was on record with unprecedented historical figures in the commodity export sectors, estimated at $180 billion, and the tourism industry with revenues of $40 billion.

However, conditions of the Coronavirus outbreak have reduced the value of tourism exports and revenues, with the figures remaining in place by 2022.

** Foreign trade

Although Turkey's trade deficit in the first nine months of 2020 rose to $37.8 billion, domestically recorded indicators are close to global benchmarks, driven by declining global consumer demand due to the Corona pandemic.

Last month, the World Trade Organization (WTO) said in its revised world trade forecast report that global commodity trade is expected to decline by 9.2 percent in 2020.

World Trade Organization (WTO) figures are close to the 10.9 percent decline in Turkish exports abroad at the end of September on an annual basis to $118.4 billion, partly due to the currency's depreciation, when the value of exports is converted to the dollar.

Despite the global negative repercussions of the Corona pandemic, purchasing power in the Turkish market continues to gain acceptable momentum during the first nine months of 2020.

Turkey's total imports during the first nine months of 2020 grew by 1.5 percent year-on-year to $156.1 billion, while exports covered about 76 percent of the total value of imports during the period.

Source/Anatolia News Agency