Turkey’s economy minister claims UN calls for the same economic policies as Turkey
Turkey’s Economy Minister Nureddin Nebati claimed that the United Nations called for the low interest rate policies that Turkey has been conducting for years.
The economic indicators such as employment and growth in the Turkish economy are improving, but the policies implemented by developed western countries have increased the risk of global recession, Nebati said.
Turkey unveiled an economic programme last year, to shift to a current account surplus through low interest rates that was supposed to boost production and stronger exports, but but soaring inflation and a tumbling currency due to global energy and commodity prices have made that target unattainable.
Turkish President Tayyip Erdogan has long supported an unorthodox theory that low borrowing costs will result in lower inflation, the opposite of conventional policy.
Nebati said that the pandemic and the Russia-Ukraine war have caused many problems in the global economy.
“Rapid increases in commodity prices, especially in energy and food, increased inflationary pressures all over the world. The highest inflation rates for decades emerged in Germany and the US.” Nebati said, adding that to combat inflation, many central banks resorted to financial tightening, which increased the risks of recession in the economy.
“Interest rate hikes in advanced western countries not only increase their own risk of recession, but also increase the risk of the global economy falling into recession and then prolonged recession, as the UN pointed out yesterday,” Nebati said.