Turkey releases unemployment data as economy faces major currency crisis

Turkey releases unemployment data as economy faces major currency crisis

Today, Turkish officials will release unemployment data for month of May. Unemployment fell from 13% in January 2017 to 9.6%

Merchants chat in front of a currency exchange office at the historical Grand Bazaar, known as the Covered Bazaar, in Istanbul

Photo: Reuters/Murad Sezer

Today, Turkish officials will release unemployment data for month of May.

Unemployment fell from 13% in January 2017 to 9.6% in April 2018. This data nears the lowest recorded unemployment rate under President Recep Tayyip Erdogan’s administration of 8.1% in 2013. This is a significant drop that comes amidst an increase in foreign investment and consequent debt accumulation.

Even if the data released on May points towards a downward trend in unemployment, it will not reflect the economic turmoil facing Turkey today, especially since Erdogan’s reelection in June. Currently, the Turkish lira faces inflation rates of nearly 40% against the US dollar. US President Trump’s announced intention to double tariffs on Turkish steel and aluminium. Turkey also recently indicated it will boycott all American electronic imports, which will only hurt the country’s economic pressure. It is likely that the central bank will continue hiking interest rates in order to curtail rising inflation and increased consumer prices.

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