Turkish Economy: The 2022 Budget Shortfall
Turkish Economy: 139 Billion Lira In The 2022 Budget Shortfall
Mehmet Ali Akben, the head of Turkey’s economy and BDDK banking watchdog, stated on Monday that the government is addressing the sector’s request for dividend payments. Additionally, Akben stated that they are developing a technique based on bank ratios. They will finish it before the annual general meetings.
According to the Automotive Industry Association, production in the Turkish automotive industry increased by 6% to 1.35 million vehicles last year. With a production increase of 8.2% to almost 142,000 vehicles in December.
Auto sales increased by 7% to 827,000 vehicles last year, with sales in December rising by 83% to roughly 122,000 automobiles. According to Finance Minister Nureddin Nebati, Turkey’s budget deficit for the previous year was 139.1 billion lire ($7.4 billion). Analysts expect this year’s deficit to be less than 1% of the country’s GDP.
At a press conference, he also revealed that the budget’s main surplus in 2022 was 171.8 billion Turkish Lira. According to the government’s medium-term economic plan, the budget deficit to GDP ratio was expected to be 3.4% in 2022.
According to the Turkish central bank, the first transaction on the e-Lira network was successfully completed. Additionally, they intend to do more tests in 2023. They are researching digital identification in addition to their CBDC because this is a crucial component of making their CBDC function.
If Turkey experiences a change in government, it will be fascinating to see if the potential new leader is as supportive of the CBDC as Erdogan has been. In Turkey, where the value of the lira was half last year due to the ongoing financial crisis, cryptocurrency trading has primarily experienced a spike in popularity.
Turkish Economy and Crypto
The rates of inflation are astronomical. In Turkey, the annual inflation rate reached a high of 78.35% in June, while the unemployment rate increased to 10%. Its monthly average international trade imbalance now stands at $8 billion. After the central bank unexpectedly reduced interest rates amid persistent price pressure, annual inflation in Turkey is predicted to top 81% in August.
Hard currency debt totaling $182.4 billion must be repaid or refilled in the upcoming year. In the next 12 months, the Turkish economy will require at least $220 billion. Furthermore, Turkey’s external debt obligations, foreign trade, and tourism are all experiencing new strains. This is due to the euro’s decline to parity with the dollar, which has only made problems worse. All other things being equal, Turkey’s external deficit is increasing again because the country receives most of its export and tourism receipts in euros.
President Erdoan unveiled a new financial plan. The scheme entices citizens to deposit their money in Turkish banks. In order to boost the currency’s value after the lira’s sharp decline in December.
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