The Turkish Lira has undergone significant volatility, causing economic strain in Turkey.

While the crisis is easing, the repercussions will linger and take time to ameliorate.

The abrupt economic downturn and currency devaluation severely impacted Turkey. The Lira depreciated substantially, leading to a surge in the prices of essential goods, forcing many Turks to cut back on necessities like food and housing. This stark reality has forced many individuals to forgo their favorite meals or resort to living in their workplaces due to unaffordable rents. In February 2019, Turkey’s unemployment rate surged to 14.7%, remaining elevated since then. Despite the conclusion of the currency crisis nine months into the Turkish recession, substantial recovery efforts are imperative.

The recession initiated late last year due to extensive infrastructure projects funded largely by foreign borrowing. Following the Lira’s devaluation, sustaining this expenditure became unfeasible. Moreover, Turkey heavily relies on imports for various commodities, leading to a rapid escalation in prices, significantly burdening consumers.

As indicated by the Financial Times, numerous economists anticipate a contraction in the Turkish economy after a decade of growth. This downturn could intensify the prevalent high unemployment rates and impair future growth prospects. Turkish President Recep Tayyip Erdoğan remarked, “We are working towards stabilizing the economy, mitigating exchange rate volatility, and fostering job creation.”