Econo ile ilgili hikayeler

Under these circumstances, the Central Bank and the government should focus on reducing inflation as quickly as possible and ending their periodic market interventions. The longer these interventions continue, the more anomalies emerge in other economic indicators, and these anomalies deepen over time.

When tax increases are made to balance the public budget deficit, the ratio of public debt to GDP generally increases. In other words, raising taxes to save money produces the opposite result. This is because the increase in taxes decreases the demand in the market, and since fewer transactions are realized, the tax revenues that the public sector desires to balance the budget cannot be obtained. However, when the public saves, the ratio of public debt to national income decreases.

In 2024, Turkey's unemployment rate is anticipated to surpass 15%, negatively impacting household welfare. The rising unemployment is expected to have an even more pronounced adverse effect since an increase in labor force participation is not foreseen. Furthermore, high inflation and escalating financing costs are likely to contribute to an economic growth slowdown, resulting in higher unemployment.

The government's endeavors aimed at economic stabilization, coupled with the central bank's responsibility in steering monetary policy, played critical roles in confronting challenges like inflation, currency stability, and trade disparities. However, the centralization of these plans, or their absence, unfortunately resulted in an inadequate institutional capacity to effectively manage the economy.