Turkey's Economic Growth Slows Amid Rising Interest Rates
Recent data indicates that Turkey's economy is experiencing a slowdown, primarily due to increasing interest rates. In the context of inflation and a fragile financial system, the Central Bank of Turkey decided to raise the key interest rate, significantly affecting business and consumer activity.
Turkey's economic growth, which previously demonstrated robust momentum, is now under pressure. In recent months, the growth of Gross Domestic Product (GDP) has visibly slowed down, raising concerns among economists and analysts. The rise in interest rates, intended to combat inflation, has forced many investors to reassess their strategies, resulting in decreased consumer spending.
Notably, the real estate sector, traditionally a driver of economic growth, is losing its momentum. Construction companies are facing rising borrowing costs, which in turn is reflected in housing prices, which have begun to show negative trends. This further confirms experts' concerns about the worsening economic situation in the country.
The government faces criticism for its economic policies, which historically relied on low interest rates and consumption stimulation. However, it is now confronted with the realities that demand stricter measures to stabilize the economy.
Some analysts predict that economic conditions in Turkey may continue to deteriorate in the coming months unless the government takes more decisive steps to support the economy. The magnitude of these changes is hard to evaluate, but one thing is clear: the current state of the economy requires attention and active solutions from the authorities.
