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IBNA/exclusive - Turkish economist predicts difficult days for the turkish economy

IBNA/exclusive - Turkish economist predicts difficult days for the turkish economy

By Manolis Kostidis - Ankara

As there is an upheaval in the turkish economy with the lira devaluation and the increase of the interest rates that was decided by the turkish Central Bank, we spoke with the professor of Economic Science of the University of Istanbul, and political analyst, Mehmet Altan.

Dr. Altan is not very optimistic about the future of the turkish economy and even refers to the possibility of a recession in 2014. He is recognized as one of the most experienced economists in Turkey and at the same time his articles for the political developments in the country are always the cause of much debate.

"Things do not go well. The economy was already on wrong foundation and know the foundation begins to crack. The political upheaval makes things worse. The development was not based on industry, but on the development of constructors, with their skyscrapers and shopping centers. Already one can observe a big leak of foreign capitals.

The "warm money" is leaving abroad. No others investors are going to come, since they intervene in the Work of Justice. Wherever such clumsy interventions take place the foreign investors are scared and leave. This is what is happening now in Turkey. A major lack of funds is being created and because of the devaluation of the lira the loan obligations of the private companies are growing.

We cannot talk of growth in 2014, and if this situation continues and things do not turn around, then we will witness a recession this year. I am not at all optimistic. They have led us to a consumption growth and now we may pay the price", Altan stated.

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