Turkey in Deep Trouble - Joe Blogs

Turkey’s economy is still under serious pressure — and in this video, I break down the latest data to show exactly what’s going on.

We take a detailed look at inflation, food prices, producer costs, interest rates and the continued decline of the Turkish lira… and explain why, despite some signs of improvement, the overall situation remains extremely fragile.

Inflation is still running at over 30%, placing Turkey among the highest in the world. Food prices continue to surge, hitting lower-income households the hardest, while rising producer costs are making it increasingly difficult for Turkish businesses to compete globally.

At the same time, the Turkish lira has continued to weaken significantly over the past five years — eroding purchasing power and driving further inflation — while interest rates remain extremely high as policymakers try to stabilize the economy.

On top of all this, rising energy prices linked to tensions involving Iran are creating additional risks for Turkey, which relies heavily on imported energy.

So what does all of this mean for the future of the Turkish economy? And can Turkey break out of this cycle of inflation, currency weakness and slowing growth?