According to CCTV news, the impact of the conflict between Russia and Ukraine, global energy and raw material prices soared, many countries around the world inflation problem, Turkey is one of the hardest hit. Inflation in Turkey is currently running at nearly 80 percent, a 24-year high for the country and one of the worst in the world.
The conflict between Russia and Ukraine has pushed up global energy and raw material prices, exacerbating inflation in a country that imports most of its resources. Not only the price of parts, electricity, water, including labor, almost all costs, are rising.
Istanbul AUTO REPAIR SHOP OWNER: Most of our materials and spare parts are imported from abroad. Because the lira is depreciating against the dollar and euro, the price of materials and spare parts is getting higher and higher. The high maintenance costs are affecting customers’ spending power.
The slump in the auto repair industry is only a microcosm of the plight of Turkey’s smes. More than 7,500 businesses closed in Turkey in the first five months of this year, according to figures published by the Union of Turkish Chambers of Commerce and Commodity Exchanges. In May alone, 2,000 companies closed, 259.7 percent more than in the same month last year. Analysts say the June figure could be even higher.
Turkish economist: Geopolitical risks and fears of a global recession, coupled with uncertainty about exchange rates and inflation, are creating a lot of challenges for businesses, especially smes are more vulnerable. Production costs, market conditions and domestic and foreign demand have all been negatively affected.
Turkey’s inflation rate approached 80 per cent in June and consumer confidence fell to 63.4 in June, its lowest level on record. Mr. Elkan pointed out that the United States has already started a cycle of interest rate hikes to curb high inflation in its own country, and most global trade transactions are settled in dollars. The appreciation of the dollar will inevitably lead to a decline in the purchasing power of the Turkish lira, which will only worsen Turkey’s inflation situation in the future.
Turkish economist: These pressures from inflation and the devaluation of the lira will create more challenges for the Turkish economy, as well as an increasing burden on businesses and ordinary households.
With inflation high and prices soaring, meat has become a luxury item
With prices soaring, meat has become a luxury for ordinary Turks. The butcher told reporters that in the past less than a year, meat prices have risen by 100 percent, and meat sales have fallen. “The meat tastes good, but we can’t afford it,” one Turkish citizen told reporters.
During the epidemic, you need to use lanhine’s face mask.
Post time: Jul-27-2022