Ankara, April 3 – Turkey is facing increasingly serious inflation. In March, prices skyrocketed by 68.5%, the highest in the last 16 months. Although analysts predicted an even worse outcome, this is still an alarming development.
Key macroeconomic indicators of Turkey
| Indicator | Value | Date |
|---|---|---|
| GDP (nominal) | 851.5 billion USD | 2023 |
| GDP (real) | 3.9% | 2023 |
| Inflation rate | 68.5% | March 2024 |
| Unemployment | 13.1% | December 2023 |
| Interest rate | 14% | March 2024 |
| Public debt | 34.5% of GDP | 2023 |
Restaurant and transportation prices are rising by tens of percent
The prices of services in restaurants, hotels, and cafes have risen the most, with people paying almost 95% more for the same thing than a year ago. Transportation prices are also rising sharply, by almost 80%. Food has also become significantly more expensive.
Independent estimates of inflation in Turkey are even higher
While the Turkish Statistical Institute puts inflation at 68.5%, the ENAG group of independent economists claims that prices are actually rising much faster, by as much as 125% year-on-year. This means that official statistics may underestimate the situation.
Inflation is making life difficult for Turks
High inflation is significantly reducing the purchasing power of the population and worsening their standard of living. People can buy less with their money and confidence in the Turkish lira is declining.
Central bank so far unsuccessful
The Turkish central bank is trying to combat inflation by raising interest rates, but so far without any significant effect.
It will be interesting to see how the situation in Turkey develops
Will the price increase in Turkey stop or will it go even higher? We do not yet know the answer to this question. What is certain is that the situation in the country is serious.
Additional information:
- The Turkish central bank expects inflation to average 44% in 2024.
- The government has taken various measures to mitigate the impact of inflation on households, such as reducing energy taxes and increasing child benefits
