It is safe to say that 2021 was a year of economic highs and lows for Turkey – a description that, admittedly, runs the risk of being viewed as an understatement.
As President Recep Tayyip Erdogan’s government celebrated record-breaking exports and stock market figures, it also contended with the dual challenge of biting inflation and a currency crisis, which it managed to – for the most part – reign in during the latter part of the year.
Key to this was the government’s decision to double down on an economic policy unveiled in the last quarter of 2021 – one that aims for a low current account deficit and high growth rate through investment, production, employment and exports, instead of steeper interest rates.
Despite the country’s comprehensive measures to offset the impact of the COVID-19 pandemic, the Turkish lira’s value plummeted in the last few months of the year, hitting an unexpected record low of 18.40 against the US dollar.
The spiraling currency prompted…