Institute of International Finance (IIF) Chief Economist Robin Brooks, shared on the social media, made evaluations about the Turkish economy. Brooks shared, “Turkey’s net exports have contributed to growth in the last 2 years. In this situation, manufacturing and tourism It is an important indicator of how competitive their industry is.” Drawing attention to the fact that it is enough for the Turkish economy to take a market-friendly step towards the markets for a big boom, Brooks noted that even a small change towards orthodox policy in the economy will pave the way for this big boom.
DECREASE IN EURO
Brooks export While drawing attention to the decline in TL as the volume increased, he said that with the right policies, an increase can undoubtedly be seen, but things may get a little worse before they get better. In another post he made at the same time, Euro Robin Brooks, who made predictions about the increased recession probability, the increase in energy prices and the GermanyHe stated that the decline in the Euro will continue due to reasons such as production cuts in the chemical sector in Turkey. Saying that the Euro Zone is facing a major shock in the manufacturing sector, Brooks commented that allowing the Euro to fall would be much better than tackling it. According to the data released by the European Statistics Office (Eurostat), the unemployment rate in the Euro Area, which was 6.7 percent in June, decreased to 6.6 in July. The youth unemployment rate in the euro area was recorded as 14.2 percent. Looking at the unemployment rate by country, unemployment in July was 12.6 percent in Spain, 11.4 percent in Greece, 7.9 percent in Italy, 7.5 percent in France, 7.4 percent in Sweden and 2.9 percent in Germany.
SECOND FASTEST GROWING COUNTRY
According to the data released the other day, the Turkish economy grew by 7.6 percent in the second quarter, exceeding expectations. Thus, Turkey ranked second among the Organization for Economic Cooperation and Development (OECD) and G20 countries with its growth rate. Moody’s, which recently updated its 2022 growth forecast for Turkey to 4.5 percent, also increased its year-end inflation expectation to 68.6 percent. Goldman Sachs economists, on the other hand, increased their growth forecast to 5.5 percent and their current account deficit forecast to 45 billion dollars.
Brooks, who also made predictions about the global economy, made the following assessments: “A global recession is coming. We have forecasts that we will face a global recession since May. Weakening growth in China leads the way in this regard. This is also evident in Japan’s export data. China’s contribution to export growth in Japan turned negative. It is possible to see weakening in many parts of the world.”