Saturday , July 24 2021

Flight flight capital from Turkey

The Turkish economy is barely gathering strength from a blow to receive a stronger one After announcing the country's unemployment rate since last year, one opposition lawmaker revealed terrible statistics about the flight of foreign investment.

According to the deputy head of the Republican People's Party, Akyut Erdogan, data on balance of payments issued by the Central Bank, showed that funds brought by foreign investors to Turkey to benefit from high interest, and Turkish money, left the country at an accelerated pace, Lira exchange rates against foreign currencies.

"According to statistics, the first nine months of this year saw the departure of 20 billion dollars in bonds, local capital remittances and deposits," the "Zaman" newspaper quoted Erdogan as saying.

And the leader of the opposition party, a measure of foreign capital, which entered the country in 2018 fell to a third of last year.

A new blow to the Turkish economy

The Turkish economy took a new hit on Thursday, with the country's unemployment rate rising sharply since last year, amid other crises suffered by Ankara, especially the deterioration of the local currency.

Turkey's unemployment rose to 11.1 percent from July to August this year, the highest level since the start of last year, government data showed.

Unemployment in Turkey reached 10.6 percent in the same period last year, but the loss of 40 percent of Turkish lira this year has caused a major recession in the country's economy.

New government data shows that non-agricultural unemployment averaged 13.2 percent between July and September this year.

A dark vision of the future

Moody's said on November 9 that the "world of pain" was waiting for the Turkish economy next year, especially after Turkish lira recorded its worst performance this year.

According to Bloomberg, this year's lira decline will translate into severe economic problems as growth slows in developed and developing markets.

Estimates come as the International Monetary Fund (IMF) says Turkey's economic growth could fall to 0.4 percent in 2019, from 3.5 percent this year.

"A weaker pound and a rise in borrowing costs will be a reflection of investment and consumption," the IMF said in a report.

On August 10, the lira peaked this year, with the process down 18 percent during trading, while it has lost nearly 40 percent since the beginning of the year.

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