Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli PM Office: Netanyahu has ordered that the Rafah crossing will not open until further notice.
Ambrey: Cameroon-flagged tanker issues distress call following explosion abroad, approximately 60NM south of Yemen's Ahwar.
Araghchi: Iran adopted a constructive approach in its engagement to ensure the European Union and the E3 fully honored their commitments and lifted all sanctions.
Araghchi: After a year of Iran’s full compliance with the agreement, it began implementing gradual, proportionate, and reversible compensatory steps in accordance with its recognized rights under the deal.
Araghchi: Iran demonstrated the utmost restraint in the face of repeated and fundamental violations and made extensive efforts to restore balance and preserve the agreement.
In his letter, Araghchi stated: The E3 failed to fulfill their obligations and instead imposed additional illegal sanctions on Iranian individuals and institutions.
Araghchi: These coercive measures constituted a grave violation of international law and the UN Charter, causing severe disruption in the implementation of the agreement.
Araghchi: Washington initially refrained from fulfilling its commitments, then withdrew from the agreement, reimposed its illegal and unilateral sanctions, and even expanded them.
Araghchi: UN Security Council Resolution 2231 has expired and fully ceased to be in effect as of today, in accordance with its explicit provisions.
Iranian Foreign Ministry: Reimposing sanctions on Iran is illegal

Turkey's economy struggles to stay above water ahead of May elections

  • By Al Mayadeen English
  • Source: Foreign Policy
  • 13 Apr 2023 12:05
  • 2 Shares
5 Min Read

As the elections near next month, Erdogan continues to fight inflation while the nation still reels from the economic aftershocks that hit Turkey back in February, leaving more than 44,000 people dead.

  • x
  • A merchant counts Turkish lira banknotes at the Grand Bazaar in Istanbul, Turkey, March 29, 2019 (Reuters)
    A merchant counts Turkish lira banknotes at the Grand Bazaar in Istanbul, Turkey, March 29, 2019. (Reuters)

When Turkish President Recep Tayyip Erdogan took office 20 years ago, Turkey’s economy was barely just recovering from the 2001 economic crisis, but quickly spiraled upwards into growth by tackling poverty and reaching upper-middle-income status, per the World Bank.

The country's GDP per capita jumped from $3,600 when he took office to approximately $12,600 ten years later, but it took a turn for the worst when it started plunging downwards, especially following the Covid-19 pandemic, US sanctions, the global economic collapse, and the devastating February 6 earthquakes. 

Erdogan began slashing interest rates to keep investment cheaper and growth more possible, but after inflation started running wild by hitting an estimated 85% annual rate late last year, the president was keen on keeping interest rates low to attract more growth. Unfortunately, that came at the price of the Turkish lira which plummeted gravely.

During an interview for 24 TV last week, Erdogan said, “We’re preparing to further strengthen our economic policies in the period ahead,” adding that "a team under the coordination of [former finance minister] Mehmet Simsek, who participated in the economy’s management for years, is making preparations to that end.”

Suban Cicek, a 35-year-old father of six who lives in the low-income neighborhood of Tarlabasi in Istanbul, expressed: “The last few years have become more difficult financially."

"The government has always been encouraging us to have a lot of children. Now some of these kids might have to resort to begging or becoming thieves because their families can’t even afford food anymore.” 

Turning to gold as an alternative

As the elections near next month, Erdogan continues to fight inflation, while the nation still reels from the economic aftershocks that hit Turkey back in February, leaving more than 44,000 people dead. 

Turkish economist Mustafa Sonmez explained that “the government has introduced regulations that have helped stabilize our currency ahead of the elections, but this stability is an illusion and doesn’t reflect the actual market price of the Turkish lira. It’s a temporary relief, aided partly by Russian and Gulf investments, but it’s not a long-term solution,”

Economists generally expect growth to gradually slow from 5% to nearly 3%, but simultaneously predict that annual inflation will fall from current highs to 40% if not less by the end of the year. 

Related News

Hamas offers gratitude to mediators, allies for Gaza ceasefire support

Turkey plans arms shipments to Syria, targets Kurdish militants

As a result of the fear of a major economic collapse in the country and to protect what's left of savings, many Turkish citizens have turned to gold as an alternative. When the Turkish Lira hit a 24-year low last year, the nation's central bank became the world’s biggest gold buyer.

Turkey is facing its worst currency crisis since August 2018 when the value of the lira hit historic lows following diplomatic disputes with then #US President Donald #Trump, what is happening to the #TurkishLira?#Erdogan #Turkey pic.twitter.com/rAvTbZyEcu

— Al Mayadeen English (@MayadeenEnglish) December 3, 2021

Zahit Akbas, a third-generation gold trader who has a shop in Istanbul’s Ottoman-era Grand Bazaar,  has been running the four-decade family business and has observed that while older people used to buy gold more than the young, today that has been the opposite. 

“Even though the last few years have seen the highest inflation in a long time, people keep buying gold, and I’m now mostly seeing younger people—those in their 30s—investing. They don’t trust the currency they are earning anymore, so they exchange it for gold,” Akbas said, adding, “I’ve seen people spend all of their savings on gold... these days, it’s one of the safest bets.”

Undone work in time for the elections

Gold, however, is still not a viable option for those who have suffered financially from the earthquakes since February. 

Ihat Tastal, a father of two, stated that he's been sleepless, as although he survived the earthquake with his family, he suffered financial losses. Residing in Adiyaman, Tastal was earning a steady income and took out a mortgage loan two years ago to purchase an apartment, which was advertised as earthquake-proof.

On that ill-fated day, Tastal’s apartment partially collapsed and is now due for demolition. “The government has offered financial support and aid. Our mortgage payments are also paused for the next six months,” he said, adding however that he is worried about having to repay the loan even if they don't get to live in the apartment anymore. 

As of then, Erdogan vowed to rebuild homes within a year.

Read more: Will Turkey’s earthquake cost Erdogan the election?: CNN

According to World Bank estimates, physical damages from the earthquake have hit $34.2 billion, but Sonmez sees that total reconstruction and recovery, alongside costs for relocation of citizens and replacement of assets, could go very much further and higher than that number. 

“It might come to at least $100 billion,” he said. “Whatever happens during next month’s elections, the new government will be burdened with several difficult tasks, including the earthquake’s - and the economy’s - recovery.”

Erdogan and his Justice and Development Party (AKP) are facing one of the most difficult campaigns of their two-decade reign. Nationwide surveys show him neck and neck with Kemal Kilicdaroglu, the 74-year-old Republican People's Party leader who will represent the unified opposition in the presidential election on May 14.

  • Turkey
  • economy
  • Turkey elections
  • Recep Tayyip Erdogan
  • Turkish elections
  • Turkish Economy
  • elections
  • Kemal Kilicdaroglu

Most Read

Iran strikes secret Israeli-US bunker under Tel Aviv high-rise

Tel Aviv high-rise struck by Iran hid Site 81, secret US-Israeli base

  • Politics
  • 14 Oct 2025
Palestinian journalist Saleh al-Jaafarawi in an undated image in Gaza, occupied Palestine (Social media)

Gaza Palestinian journalist Saleh al-Jafarawi killed by collaborators

  • Politics
  • 12 Oct 2025
drop site

New report details extensive Israeli arson in Gaza after ceasefire

  • Politics
  • 13 Oct 2025
Illustration of fists breaking shackles, representing the liberation of Palestinian detainees from Israeli prisons. (Illustrated by: AL Mayadeen English/Batoul Chamas)

4 prominent Palestinian detainees to be freed: Who are they?

  • Palestine
  • 13 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Iraqi religious leader Sheikh Jawad al-Khalisi on Al Mayadeen Plus, October 18, 2025 (Screengrab)
Politics

Most powerful decision-maker in Iraq is US: Sheikh Al-Khalisi

Flags of Iran, Russia, and China (IRNA)
Politics

Iran, Russia, China confirm: Iran nuclear issue out of UNSC

Member of the Loyalty to the Resistance bloc Ali Fayyad speaks to Al Mayadeen, October 18, 2025 (Screengrab)
Politics

Hezbollah, allies will reject direct talks with 'Israel': MP Fayyad

The bodies of killed Palestinians held by "Israel" during the war are downloaded from Red Cross vehicles after their release, at the Nasser Hospital in Khan Younis, southern Gaza Strip, Oct. 15, 2025. (AP)
Politics

From rubble to graveyards, Gaza continues recovering its martyrs

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS