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Are we seeing the start of Turkey’s economic turnaround?

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A seller of Turkish national flags walks at Mahmutpasa district, one of Istanbul's biggest textile shopping centre, near Grand Bazaar, on Dec. 2, 2021.

World Bank praises Turkey for ‘steps in right direction’ 

A World Bank official this week praised Turkey’s recent economic policies as “steps in the right direction,” signaling a potential turnaround in a five-year economic crisis that saw historic lows for the Turkish lira, accompanied by record high inflation.

There is now hope for progress, following decisions by Central Bank Governor Hafize Gaye Erkan to raise interest rates to combat inflation and increase taxes to close the budget deficit.

“We believe that the monetary policy tightening … , the unwinding of distortive financial regulations and the fiscal revenue measures to curtail the fiscal deficit being pursued by the Ministry of Finance are steps in the right direction,” said Humberto Lopez, World Bank country director for Turkey.

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