Posted on 01/23/2017 6:21:22 AM PST by C19fan
Turkish businessman Tekin Acar had contracts to open branches of his leading cosmetics chain in ten new shopping malls this year. A few days ago he canceled nine of them after sharp falls in the lira meant he would struggle to afford the rents.
Turkey's currency has lost around a quarter of its value since the middle of last year, causing havoc for retailers selling imported goods or paying rent pegged to the U.S. dollar.
Many were already suffering from a sharp economic slowdown and dwindling tourism numbers after a spate of deadly bombings.
(Excerpt) Read more at reuters.com ...
Maybe if these whacky moozlums would stop murdering people they wouldn’t have such problems with tourism lessening. When their tourism motto is “Come to Turkey and we will blow you to bloody pulp”, others aren’t inspired to visit.
And the turkeys coming home to roost.
Been there done that, I have no need nor desire to go back. My trip was for 2 years complements of Uncle Sam.
A meaningful part of Turkey’s economy was based on tourism. Until the sharia president took over it was a wonderful place to visit.
The economic party is over for Erdogan and his AKP Party.
They had a long run of economic growth, but the causative factors have run their course. Now they face grim new prospects going forward.
Early on, they got a lot of growth by incorporating the package of economic reforms that the EU recommended, and then by increased printing of money.
Not only are new improvements coming from legal and regulatory reforms long since over, but in recent years the Government has become increasingly predatory, unfairly favoring the politically connected.
The stimulus of printing more money has run its course, and has now reversed to become a major drag going forward. The value of the Turkish Lira is collapsing (currently the worst performing currency on Earth), and interest rates will be forced to rise, tightening the availability of capital.
Erdogan came into office on a platform of peace with his neighbors - and has since turned Syria into a smoking ruin flooding Turkey with refugees, reignited civil war with the Kurdish minority, and destroyed the large Turkish tourist industry through conflict with Russia and stimulating terrorism across Turkey.
Turkey has become a massively oppressive society, with more journalists imprisoned than Iran and China combined. Journalists have received sentences of more than 2,000 years for expressing negative opinions about Erdogan. For freedom and economic opportunity, brain drain and capital flight have now begun.
Erdogan has built himself the largest palace on Earth, and has become increasingly maniac in consolidating power, and moving his society toward a totalitarian Islamist/Nationalist (Fascist) direction. He consciously models some of his approach on Hitler, such as his motto, One people, One nation, One leader (Ein Volk, Ein Reich, Ein Fuhrer).
He has expended all his political credibility with the Europeans over his behavior extorting them with the refugee flow, and the creeping public recognition that Erdogan has been sponsoring Islamist terrorist groups.
All the trends are against the Turkish economy. Trump is the big wildcard for Turkish economic prospects. Their best case would be a quick settlement in Syria, and with Russia.
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