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As experts in the stock market and trading world, we bring you the latest insights and analysis to help you navigate the ever-changing landscape of investments. Today, we take a closer look at the recent developments in the Turkish economy and how they could impact the global market.
The Turkish lira has been experiencing a controlled devaluation ahead of local elections, with a depreciation of 8% against the dollar and 6% against the euro year-to-date. However, further devaluation is expected in the coming months due to shrinking net foreign assets. This mirrors what happened in June 2023 when the currency fell significantly, leading to increased energy prices.
In addition to the weak currency, inflationary pressures are also mounting. The recent rise in the minimum wage and tighter fiscal policies are contributing to the challenges faced by the Turkish economy. The fiscal deficit is on the rise, further complicating the situation.
With a restrictive policy stance in place, domestic economic activity is expected to suffer. Real GDP growth is projected to slow down in 2024, following a robust performance in recent years. The need to rebalance the economy is becoming more urgent as the outlook for economic growth dims.
For a comprehensive view of today’s economic events and how they could impact your investments, be sure to check out our economic calendar. Stay ahead of the curve with Extreme Investor Network and make informed decisions for a successful investment journey.
Written by Thomas Gillet, Director in Sovereign and Public Sector ratings at Scope Ratings GmbH, with contributions from intern trainee Tom Giudice.
