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CHP’s Böke: Turkey on brink of economic crisis deeper than 1994, 2001

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Republican People’s Party (CHP) Deputy Chairman and spokesperson Selin Sayek Böke warned on Monday that Turkey’s economy is on the brink of a real sector crisis, saying that the new crisis would be worse than those Turkey faced in 1994 and 2001.

“If the madness of a one-man regime continues, the real sector crisis that we have been at the brink of could easily and rapidly be transformed into a fiscal and later a financial crisis. This crisis doesn’t resemble the crises of 1994, 2001 or 2009. This is a real sector crisis,” said Böke during a press conference at CHP headquarters in Ankara, a day before the government will convene the Economic Coordination Committee, which will evaluate the recent sharp loss in value of the Turkish lira and declining economic indicators.

Underlining that the instability is not temporary as the government claims, Böke pointed to the unemployment statistics that were released last week.

“The unemployment rate indicates a new record. It has reached 11.3 percent. This is the highest figure of the last six years,” he said.

“Extending the state of emergency creates political risk. It suffocates the economy,” said Böke, listing a debate over the switch to a presidential system of governance and strained relations with European Union as other factors that are weakening the Turkish lira. Böke also pointed out the dramatic rise in Turkey’s foreign debt due to the weakening lira.

Böke strongly criticized President Recep Tayyip Erdoğan’s statement that Turkey would join the Shanghai Corporation Organization (SCO), saying that it would not contribute to Turkey economically what the EU does.

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