The IMF warned Turkey to reduce its investment incentives recently. Since the United States isn't sending financial aid to Turkey their president chose to increase financial incentives to stimulate the economy . However world sentiment is changing on these policies because of their high inflation.
https://ahvalnews.com/turkish-economy/imf-warns-turkey-economy
3 comments:
Turkey’s overheating economic growth appears hard to sustain in 2018 with those gaping budget and current account deficits and such high levels of inflation and unemployment. But I am very interested to see where it goes from here.
It's interesting to see that the IMF talks about improving investor sentiment if Turkey decreases political pressure over monetary policy. Turkey has suffered increasingly high inflation but maybe it's heading towards a decrease as the Lira strengthens slowly.
It will be interesting to see what will happen from here. I wonder what else Turkey will do after they chose to choose financial incentives to try and restore the economy. Hopefully Turkey will reduce their inflation rates.
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