Turkish economic crisis may be on the horizon – Acemoğlu
The Turkish economy has major structural problems, and the country’s drift away from the West is its biggest risk factor, Daron Acemoğlu, a prominent economist from the Massachusetts Institute of Technology, said.
Interviewed by Turkish Koç Holding’s monthly magazine, Bizden Haberler, Acemoğlu said the Turkish government’s 5.5 per cent growth rate forecast is too optimistic.
Turkey’s growth relies on demand, not on productivity, which is not sustainable, he said, while inflation and exchange rate factors make it even riskier.
In Turkey, the judiciary, the capital market and state institutions are not free of political influence, Acemoğlu said, which makes them dependent and vulnerable.
There is a risk of an economic crisis in Turkey in one or two years, Acemoğlu said.