NEWS ECONOMY NEWS        27/04/2021

World Bank sees rise in poverty in Turkey to 12.2% in 2020

The World Bank has published its Turkey Economic Monitor. April 2021. “Navigating the Waves” report. In this report, the World Bank estimated that Turkey's poverty rate rose to 12.2% in 2020, from 10.2% in 2019, and said returning to pre-pandemic levels would be a challenge. The World Bank notes that while the recovery in late 2020, based on a credit boom introduced in the middle of 2020, has helped labour markets recover somewhat, many have been left behind, especially women, youth and lower-skilled workers. It added that high inflation has especially hurt the poor.


The World Bank’s summary of recent developments in the Turkish economy is as follows:


“Policy responses to the pandemic and its economic impact led to a sharp rebound in GDP in the second half of 2020. Taking account of quasi-fiscal measures to support credit, Turkey’s stimulus program was larger than the average of G20 emerging market countries. A stimulus induced credit boom and reopening in June and July drove a sharp rebound in economic activity, leaving Turkey as one of the few countries with positive growth in 2020. But this growth came with rising inflation, falling international reserves, a weaker Lira, a sharply expanded current account deficit and increasing corporate stress. In response, interest rates were tightened, and a series of measures aimed at promoting credit growth were removed. Entering 2021, volatility was reduced, and risks were beginning to be addressed. The Lira was more stable, capital inflows supported a recovery in international reserves and the banking sector was able to maintain its FX liquidity buffers. However, following the dismissal of the Central Bank Governor, Turkey saw pronounced market turbulence and price volatility in March, reversing earlier gains.”


Click here for the World Bank’s report



Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 17.53% in June 2021       Turkey’s official unemployment rate decreases to 13.2% in May 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020