Turkish economy- An economy with few misses and hits

The world economy in 2024 has seen a mix of highs and lows due to varied factors. The economic and political conditions in Turkey to the situation did show similar trends. With its growing challenges from the global economic conditions and the unsettling political scenarios, the nation was able to make progress.

Considering the inflation situation, which many of the economies were trying to bring to target in 2024, the Turkish economy missed its inflation target by a small margin. The consumer prices are said to have fallen by 2.1 percent compared to its November numbers at 47.1 percent. Though the economy is said to be grappling with the high borrowing costs the central bank managed to go in for 250 basis points cut for 2024. Going into the new year it's said that the approach by the central bank would be likely a cautious one. With many approaches to bring the borrowing costs down, what is more likely to be seen is how they would get their inflation ease back to their target range. It's going to be a challenge for the central bank for 2025. From what is seen it will be a combined effort of both fiscal and monetary policy effort to bring their inflation back into their target range for this year.

Turkey is said to have faced a double-digit inflation level since the year of 2019 and is said to have peaked at close to 86 percent in 2022, the citizens have been paying a heavy price in terms of the goods and services being sold in their economy. To ease their burden the Turkish government is said to have increased their minimum wages to $600 in dollar terms, a 30 percent increase. Though the citizens feel the wages are not enough, workers' unions demand a higher increase which is close to a 70 percent increase to keep up with the rising costs. The situation continues to be grim for the economy.

In terms of the currency performance against the U.S. dollar, it remains a lot inferior due to the challenges the domestic economy continues to fight against.

With the measures of increasing the taxes on fuel prices by the government, the overall impact of the prices of the economy is said to have fallen by close to 7 percent. This is a measure of a disinflation program in order to tackle the prices in the economy.  We can only anticipate the situation would mostly improve for the people of Turkey as the year progresses, though the results of the change would take time to show some results.