As you will have seen around the world, the global Covid-19 pandemic has put economies at a standstill and even with stimulus packages, some to the value of billions of dollars, to shore the markets up, it hasn’t stopped one of the biggest declines that we’ve seen for a long long time, probably since around 1870.
The Work Bank who recently issued their latest report on the Global Economic Prospects expect the world economy to contract by almost 5.2% this year, driving 70-100 million people into poverty. , which is a lot worse than a previous estimate of 60 million, when the pandemic first hit. This is of course is mostly due to staff being laid off, as companies try to save money where possible to protect future trading, and a decrease in investment as demand for exports shrink due to the restrictions on movement and travel.
The good news however is that before the pandemic Turkey’s economy grew 4.5% in the first year, and should bounce back to a record 5% growth next year, once things get back to a degree of normality, and the Treasury & Finance Minister Berat Albayrak agrees saying that ‘Leading Indicators now show that the worst is behind us’.
The recovery has already started, and businesses are starting to open again, and Berat hopes that ‘economic activity will return to its potential level in the last quarter of the year, completing 2020 with a positive growth performance’.