Turkey’s high inflation to continue throughout 2023 - economist

Turkey’s high inflation to continue throughout 2023 - economist
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Columbia University Professor Jeffrey Sachs said Turkey could stabilize its economy in 2024, after a peace settlement in Ukraine and a new economic policy after the elections

Inflation in Turkey will remain high throughout 2023 due to many reasons including the war in Ukraine, the upcoming elections, unconventional macroeconomic policy and difficult relations with international credit rating agencies and with global investors, renowned economist Jeffrey Sachs from Columbia University said.

In an interview that was published on ekonomim.com on Wednesday, Sachs said he hoped Turkey could stabilize its economy in 2024 with a possible peace agreement in Ukraine and a new policy framework to be formed after the election.

“Turkey has ironically experienced some positive effects as business and trade shifts from Ukraine and Russia to Turkey, but the overall effects and uncertainty of the Ukrainian war are also negative for Turkey. The sooner the war ends, the better for all sides,” Sachs said, adding that the upcoming elections and the unconventional macroeconomic policy also made it difficult to battle high inflation.

Sachs also suggested that Turkey could play an expanding role if it adopts a regional cooperation strategy which compasses overcoming disputes with Greece in a world that goes towards multipolarization.

Sachs said 2023 will also be a difficult year for the US and Europe; with both sides struggling with issues such as high inflation, post-pandemic effects, Ukraine war-sanctions and US-China tension.

“I think the EU will go into a complete recession, while the growth in the US will be close to zero,” he said.