The Turkish economy is in crisis. The economic downturn is now also noticeable on the job market. Between December and February, the unemployment rate rose to 14.7 percent – the highest level in ten years. Youth unemployment rose to 26.7 percent, the highest level since the start of data recording in 2005.
At the end of 2018, the Turkish economy contracted more than it had since the financial crisis of 2009. Currently the country is in recession. According to experts, this could drag on into the second half of the year.
„It will get worse“
Turkey expert Tatha Ghose of Commerzbank, however, assumes that the unemployment rate will continue to rise until the economy picks up in July or August. „It’s going to get worse before it gets better.“
The Turkish economy suffers mainly from the fall of the domestic currency by 30 percent. Background include uncertainties over diplomatic tensions with the United States.
Both President Recep Tayyip Erdogan and his son-in-law and Finance Minister Berat Albayrak have stated that Turkey has the worst economic problems behind it. Albayrak recently announced some structural measures to boost the economy.
Problems due to lira decay
Especially in the big cities, the high cost of living causes displeasure. Lira decay has made it difficult for many companies to service their loans in euros or dollars. Hundreds had to apply for bankruptcy protection, and the government also stopped planned investments.
