Erdogan’s home loan incentives threaten to fan inflation
A further increase in already skyrocketing home prices appears inevitable in Turkey following Erdogan’s announcement of loan incentives, a move that many pundits see as pouring fuel on the inflation fire.
A loan package to encourage home sales announced by President Recep Tayyip Erdogan last week threatens to further stoke Turkey’s consumer inflation, which is already on course to hit an annual of 100% in the coming months.
Erdogan’s government has failed to outline a convincing program to curb inflation, relying instead on impetuous measures to stimulate growth as a means of soothing popular economic grievances ahead of elections next year. Housing and construction have been Erdogan’s favorite sectors, driving economic growth for years before hitting dire straits amid the country’s financial woes in the past several years.
