Good news from the economy one after another: the decline has begun

Haber7.com writer Mehmet Acet wrote an article about recent economic developments. In his article, Acet pointed out that 165 billion grants were granted to electricity, natural gas and fuel in 2021. “In the additional budget made in June, 134 billion lire was allocated to support electricity and natural gas for the remaining 6 months of 2022. If a family receives a natural gas bill of 5,000 lire this winter, the government commits 4,000 lire of that, only 1,000 lire is reflected in the account.

Sharing the information that although there is a cost of 51 billion dollars for oil and oil products in 2021, this amount has exceeded 75 billion dollars in the first 7 months of this year.It is said to reach 100 billion dollars by the end of the year. used your statements.

Emphasizing the positive developments in the economy, Mehmet Acet recalled the following words from Minister of the Treasury and Finance Nureddin Nebati:

“Since last week, foreign investors have gained strength. Direct investments are coming. There are entries now. The Central Bank explains every week. See the reservation he announced last Thursday, see the reservation he announced tomorrow and next week. This work has begun and will continue. It doesn’t matter where you come from. Turkey is a reliable country. The flow to Turkey has accelerated since last week.”

Noting that other good news comes from Turkey’s CDS score, Acet said: Our CDS score, which was above 900 not long ago, has dropped below 800 to 786.” added his words.

Here is the article by Mehmet Acet:

Inflation and the cost of living have been the number one problem area in the economy for some time now.

Inflation was triggered by the currency attacks in November and December, and then by the sharp rises in energy prices from the war in Ukraine.

It appears that the inflation figures announced by TURKSTAT on weekdays remain at high levels (79.60%) on an annual basis, although their fever has slightly decreased (2.37%) on a monthly basis.

We are negatively differentiated in the world in terms of inflation rates.

This is a clear truth.

However, on the other hand, we diverge positively in terms of growth rates.

As of 2020, we are among the few countries in the world in terms of growth performance.

WHAT HAPPENS WHEN YOU GROW UP?

The following can be answered for those who ask what kind of wound this balm is for:

Budget performance is doing well, thanks to growth.

Looking at the total of the first 6 months, a budget surplus of 98 billion lira was captured.

Considering that the full-year budget deficit target of 278 billion was set in the preparation of the 2022 budget, the significance of this performance can be better understood.

Yes, there is inflation, this situation creates a serious financial problem, but thanks to the increase in state income due to growth, salary increases, electricity, support for natural gas, etc. In this sense, fundamental answers can be given against the inflation monster.

A reminder:

In 2021, support of 165 billion lira was granted for electricity, natural gas and fuel oil.

In the additional budget made in June, 134 billion lire was allocated to support electricity and natural gas for the remaining 6 months of 2022.

This means:

If a family receives a 5,000 lire natural gas bill this winter, the government will assume 4,000 lire of that amount, only 1,000 lire will be reflected on the bill.

INCREASE IN THE VALUE OF FOREIGN INVESTMENT, DECREASE IN CDS SCORE

The truth is, Looking at the current results of the model, which was called the Turkish economy model in autumn 2021, it appears that a very good performance was achieved in terms of exports, production, investment and employment.

For example, unemployment numbers, which rose above 14% in spring 2019 (average 13.7% in 2019), fell below 11% in May 2022. (10.9%)

However, the target for the current account deficit could not be met due to the sharp rise in energy costs.

Let me give you another number so that everyone can better understand what happened and what kind of situation we are facing:

While there was a cost of $51 billion for oil and oil products in 2021, that figure has increased to over $75 billion in the first 7 months of this year.

It is said to reach 100 billion dollars by the end of the year.

Therefore, although there is a good evolution of exports and tourism as items that generate foreign exchange, as a net energy importing country (92% for oil and 98% for natural gas, we are dependent on external sources), a current account deficit that is is expected to exceed $40 billion by the end of the year due to fluctuating energy costs. It looks like we are facing a problem.

This is the real weak stomach of the economy.

That is, another US$ 50 billion in energy costs that were not foreseen before.

While this is the case, financing the current account deficit requires more cash flow to the country.

we headline “Some Good News” That’s exactly where this link fits.

The night before, Treasury and Finance Minister Nurettin Nebati participated in the A Haber program. “How Turkey will make this curve” He delivered good news as if to announce to circles in search of an answer to his question.

He said:

“Since last week, foreign investors have gained strength. Direct investments are coming. There are entries now. The Central Bank explains every week. See the reservation he announced last Thursday, see the reservation he announced tomorrow and next week. This work has begun and will continue. It doesn’t matter where you come from. Turkey is a reliable country. The flow to Turkey has accelerated since last week.”

This is good news.

Let’s hope more will come.

Probably related to this evolution, another good news came from the country’s CDS score, which shows the risk premium.

Our CDS score, which was above 900 not long ago, has dropped below 800 to 786.

This is still a high number.

However, the needle point downwards is an important development in itself.


SOURCE: NEWS 7

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