Despite stimulus, Turkish economy faces grave coronavirus prognosis
Economic analysts shared mixed reactions to Turkish President Recep Tayyip Erdogan’s stimulus package, with some saying it doesn’t go far enough.
ISTANBUL — As health officials reported Turkey's third death linked to the coronavirus Thursday, analysts said the government will need to pursue significant fiscal interventions to stave off long-term economic impacts resulting from the global pandemic.
Turkish President Recep Tayyip Erdogan announced a $15.4 billion economic stimulus package Wednesday, introducing a mix of tax cuts, payment deferrals and increased pension payouts to help citizens and businesses weather the COVID-19 crisis.
Yet economic analysts fear the measures don’t go far enough, saying the gravity of the pandemic require further short-term actions from the Turkish state which, like other emerging markets, faces steep challenges in the months to come.
“The package seems prepared with the assumption that the shock will be limited, and that macroeconomic activity will recover after a short period,” Wolf Piccoli, co-president and political risk analyst at Teneo Intelligence, told Al-Monitor. “This is a rather questionable approach, given the profound uncertainty ahead.”
