Turkey's Economy recovers after COVID-19 Pandemic


Turkey's economy has fallen to recession in 2020. The reasons were the loans issued by government decree at record low interest rates, as well as a decline in export and  consumption. All of this had a strong impact on Lira, which reached its lowest levels and by the end of 2020 was recognized as the worst currency in the world according to Bloomberg.

On February 2, 2021, the Turkish lira rose 1.9 percent, the highest in the last half of the year. The growth of Lira has overpassed other currencies, more actively grew only in the Chinese yuan.

The Lira growth is directly related to inflation reduction, over which the Central Bank of Turkey has been working for several years. The increase in rates and the BIST 100 index bring both positive changes and difficulties for the country's residents. For example, prices for retail goods in Istanbul increased by 15% compared to prices during this period in 2020. Wholesale prices increased by 18%.

However, noticing a favorable change in the economic situation, foreign investors are returning, which has a strong impact on currency. According to preliminary data, such a tough pricing policy will last quite long. The head of the central bank, Naji Agbal, said that Turkey will be at least until 2023 in a tough economic situation.

Currency exchange rate in Turkey - Exchange-turkey.com