Turkey's Economy: Dollar, Interest Rates, and Inflation Challenges

The economy's instability and political challenges signal upcoming significant changes in the dollar, interest rates, and inflation, impacting citizens and businesses.

### Turkey's Economic and Political Challenges: Inflation, Exchange Rates, and Political Dynamics
* 📉 Turkey's foreign exchange reserves have decreased by **$5.85 billion in a week**, with net reserves falling by **$5 billion**, indicating economic challenges.
* 🗳 Recent polls show **81.1% believe the economy is poorly managed**, with **33.8% support for CHP** and only **6.1% for AKP** in hypothetical elections.
* 📈 The government's economic plan, led by Şimşek, is facing difficulties, with **inflation and exchange rates becoming major concerns**.
* 💸 The plan includes **printing money, lowering interest rates, and stimulating demand through consumer loans** until 2025, with a hope to **control inflation and the exchange rate** until 2026.
* 🛩 An analogy is made where AKP's economy is compared to a plane with engine trouble, diving to **extinguish the fire** but struggling to **pull up afterwards** due to weight.
* 🏛 The government is criticized for favoring certain companies in tax relief while burdening others, creating **discontent**.
* 🌍 Foreign policy actions, such as recent events with Israel, are seen as impacting **foreign investment and economic plans**.
* 🔮 The outlook predicts ongoing **high inflation (40-45%)** and exchange rates between **42-53** in 2025-26, with a **pre-2028 election becoming increasingly likely**.

ÇAKILACAK!!!

Avrasya Yatırım

The Impact of Political Decisions on the Economy

Major changes in the dollar, interest rates, and inflation are on the horizon, driven by political decisions.

85 billion, causing concern about the economy's stability.

1% of the population believes the economy is poorly managed, reflecting a potential shift in political dynamics.

Political Turmoil in Turkey and Its Potential Impact

Turkish politics are experiencing significant upheaval, with a notable erosion in AKP's voter support.

The government's financial decisions, including tax debt cancellations for partisan companies, are causing public dissatisfaction and contributing to a large budget deficit.

This political instability is likely to have a substantial impact on the dollar, interest rates, and inflation, potentially leading to a major balance of payments crisis.

The Impact of Economic Policies on Inflation and Exchange Rates

The implementation of Şimşek's economic plan has been hindered by various factors, including tax cuts benefiting the oligarchy and a lack of effective savings strategies.

The rising inflation and the need to lower interest rates are expected to bring the exchange rate issue to the forefront.

In response, there are plans to implement fiscal policy, lower interest rates, and stimulate the business world through consumer loans to address these challenges.

The AKP's Struggle with Inflation and the Exchange Rate

The President aims to control inflation and the exchange rate until 2026, with a promise of significant improvement by 2029 if he wins the election.

However, the party is currently struggling to find a permanent solution, facing challenges with inflation, unemployment, and a rising exchange rate.

The AKP's reliance on foreign capital and unfulfilled promises is further complicating the situation, impacting the party's ability to stabilize the economy.

The Impact of High Inflation and Economic Uncertainty

Inflation is projected to remain at a staggering 40-45%, with no sign of decrease until the Inflation Law is passed.

The heavy dependence on imports and facing deficits is expected to lead to reduced support for the AKP and a pre-2028 election.

The lack of reserves and foreign capital is likely to prolong the inflationist environment and keep the exchange rate between 42-53, causing challenges for the economy.