Corona virus threatens Turkey’s already fragile economy

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The Turkish economy has suffered from deflation for several years before the emerging Coruna virus hit it hard.
The death toll from Covid-19 in Turkey reached 168, with 10,827 injuries recorded, but many observers expect the situation to deteriorate significantly.
Experts have warned of an expected rise in unemployment and lower growth. They also point to the potentially devastating effects of the pandemic on the tourism sector, which provides jobs for hundreds of thousands.
The concern lies mainly in the fact that before the outbreak of the epidemic, the Turkish economy has been suffering from deflation since the 2018 lira crisis.
Among the members of the Group of Twenty, “Moody” credit rating agency said, “Turkey will be the most affected by the cumulative deflation of gross domestic product for the second and third quarters by about 7.0 percent” in 2020.
“The shock will most likely affect the tourism-related sectors during the summer,” Moody added.
In an open market in Ankara, residents worried about unemployment while merchants expressed fear that they could not feed their families.
Vegetable salesman Mohamed Arslan said the situation was “difficult” because his clients were mostly pensioners who were asked to stay at home.
“If we can’t do this job, how can we live?” Asked the 35-year-old.
Other dealers said sales fell by 70-80 percent.
The unemployment rate rose to 13.7 percent last year, while it did not exceed 11% in 2018, while the inflation rate reached 12.37% last month.
Bilge Ceyhan, 44, who is unemployed, expressed concern about the repercussions of the epidemic.
“How can I keep looking for work? What will the job market look like after all this?” She said, adding that her savings will not suffice forever.
Attila Yesilada, analyst at Global Source Research Center, stated that the actions of the Turkish authorities are “totally insufficient based on the expectations that we and other experts have in mind.”
He cautioned against numerous job losses with the closure of many stores, and recommended that the government give financial support more easily.

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