Free Trial

Turkey Holds Extra Budget Amid Lira Sell-Off, Officials Eye Deficit Expansion

TURKEY

LOCAL NEWS

  • Government is expected to present an extra budget in Parliament for 2022 once the main one has been completed this week due to the sharp sell-off in the lira – which has strained the existing budget with pending wage hikes and other new expenditures.
    • This is expected to discuss a minimum wage hike, civil servants’ salaries, pension payments and other measures to support businesses hit by lira weakness.
    • Senior official says the budget is tight and expansions should be made to the next draft – noting there is room to expand the deficit to 5% of GDP.
  • CHP leader says that if the Nation Alliance group approves, he can be the presidential candidate for the 2023 election.
    • This comes against a drop in support for the AKP and its junior coalition partner MHP, which risks falling below the 7% election threshold in new surveys released in November
  • Professor warns that a state of emergency may be declared in Turkey as a result of the current economic crisis. However, Good party leader Aksener said that a state of emergency would cause Turkey to go bankrupt
  • Turkish consumers turn to wholesalers who carry up to a 35% discount vs supermarkets to counter rising inflation. Wholesalers say sales have surged dramatically in November with the average size of purchases being notably larger for fear of future price hikes

Data:

  • 0800GMT: Nov central govt budget balance, prior $17.4bn
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.