How will the Turkish economy survive the Corona crisis?
Corona, which first appeared in China late last year 2019, did not turn into global phobia until r it began defeating the major and most powerful economies like the United States of America, Italy, Spain and France, but in record conditions managed to disperse their defense lines in one go.
What was taken yesterday, on the basis of a local virus in the geographically remote Chinese city of Wuhan, turned into a global pandemic that did not differentiate between the great countries and the countries that are on the path to growth, neither between the rich people nor the toiling peoples, neither between the presidents and kings, nor the employees and the working class!
Hence, fear began to prevail in all countries that rushed to take precautionary measures that would surround the disease, which was spreading terribly. Schools, universities, shopping centers and all places of gatherings and crowds were closed, and leaving the house became a dream and the right to roam in the street is only valid with prior permission. .
Yes, Corona has changed everything in the world, from customs and traditions to policies and economies, the latter which was shaken by the impact of suspension of flights, the freezing of some import and export movement, restrictions on others, and a historical record decline in oil prices and other commodities and products.
The world turned upside down without warning and preserving the human psyche from the treachery of the compelling virus became the most important achievement ... But what about the economy, what about the strength of states and the basis for the continued existence of their peoples?
Have everyone prepared for Coved 19, and will everyone succeed in overcoming it!
In this article, we will show you a model for the country of Turkey, which was the first in taking precautionary measures even while recording zero cases through extensive sterilization operations in airports, transportation, public places and the suspension of international flights to China, Iran and Italy.
But because Turkey is not in isolation from the world, the epidemic has reached it within the mid-March borders, and it has recently recovered from the remnants of the economic crisis in the summer of 2018, and it has been moving steadily towards an economic recovery in cooperation with China, its third largest partner and the European Union, which tops its list of trade transactions
If they weren’t meant to be the two parties most affected by the pandemic.
However, the severe economic impact of the epidemic has not yet been demonstrated, and control remains strong and the impact is weak in most vital Turkish sectors.
Turkey's economic plan in the face of the Corona pandemic?
Immediately upon the arrival of the epidemic in Turkey, the government was quick to announce an exceptional plan called the Economic Stability Shield as it included a package of serious measures to counter the negative effects of the Corona virus at a value of one hundred billion pounds, equivalent to 15.5 billion US dollars, to rise after a month to 200 billion pounds, or 28.7 billion Dollars.
The Stability Shield Plan relied on several items, the most important of which are:
- Orders to postpone the payment of Social Security Corporation payments for the next three months for a period of six months.
- Orders to reduce the value added tax from 18% to 1% on all domestic flights for a period of three months.
- Orders to extend the period of repayment of loans and bank interest to factories that were damaged from the impact of Corona to another 3 months.
- Orders to immediately support exporters due to a lack of exports during the Corona period, which affected the traffic and aviation movement almost completely paralyzed.
- Orders to reduce the first payment when purchasing property in Turkey worth less than 500 thousand liras to 10%, with an increase in the installment rate from 80% to 90%.
- Orders to raise the minimum wages for retirees to the value of 1,500 liras, with the presentation of the date for the holiday grant to those who are entitled to it.
- Orders in 21 states give 75% of the summer season seeds for free.
- Orders to grant US $ 8.5 billion in financial support to industrialists and small traders.
- Orders to provide medical service for the elderly as an exception in their homes, taking into account the total stone imposed on children and the elderly.
- Orders to tighten measures to counteract the effects of the pandemic by the central bank, which reduced the interest rate by 100 basis points on purchases to 8.75% in order to support the economy and stabilize prices.
- Orders to cancel customs duties on imports of medical supplies.
- The allocation of an additional two billion pounds for the benefit of social assistance and solidarity institutions that provide various forms of aid to the needy, allowing for an increase in funding by one third.
- Launching a historical employment plan entitled One Million Programmers, in an unprecedented event.
- About 4.4 million families receive financial support of 1,000 TL.
Indicators of the resilience of the Turkish economy in the face of Corona
During the Corona period, Turkey recorded many positive indicators that its economy remains a strong resilient against Corona, among which we mention:
- The industrial production index increased by 7.5%, which exceeds the growth rate in 23 European countries.
- Experts stated that Turkey will not see a food deficit due to the presence of large reserves, especially as it produces 20 million tons of wheat annually as the largest flour exporter in the world.
- Fitch International assures that the Turkish economy will resume growth after the Corona crisis and will reach 4.5% by 2021.
- Turkey has the second largest stockpile of basic materials after China, according to the latest data from the EuroMonitor International Consulting.
- Low prices for some foodstuffs, while even European countries have witnessed severe scarcity.
- The Food and Agriculture Organization of the United Nations (FAO) has ruled out any food shortages in Turkey due to Coruna.
- Free distribution of masks to citizens at a time when the world has witnessed an unprecedented scarcity of all types of masks and protective masks from Corona.
- Achieving real estate sales in the first quarter of the year 2020, i.e. at the time of the outbreak of the Corona epidemic, its best performance in eight years, as offers of property in Turkey were known to sell 341,38 property during the first three months of this year.
- The percentage of purchase processes of property in Turkey by foreigners increased by 14%, as apartments for sale in Turkey witnessed a large turnout compared to the first quarter of 2019, by buying 10 thousand and 948 apartments.
- A record increase in the percentage of purchase of independent houses during the time of Corona, i.e. the continuing dynamism of the real estate market, after there was heavy demand for residential complexes shown in ads for selling property in Turkey.
- High export rates in many agricultural products, such as dried fruits, tangerines, and manufactured materials such as yachts.
The Turkish economy, compared to many countries, even the major ones, has resisted in the face of the Corona storm thanks to a package of decisions and measures that gave a strong impetus to its cohesion and stood a strong bulwark in the face of its sharp decline.