Turkey’s economy collapses and thousands of companies go bankrupt – details

Continuing the bleeding and deteriorating Turkish economy as a result of President Recep Tayyip Erdogan’s policies, some 12,000 companies went bankrupt in the first 7 months of 2022.

According to data from the Union of Turkish Stock Exchanges and Chambers of Commerce, 1,662 companies in Turkey declared bankruptcy in July, bringing to 12,000 the number of companies closed during the first seven months of this year.

Compared to the same month of the previous year, the number of closed companies rose by 53.7% during July this year, and the number of closed businesses for real people this year increased by 4.8%.

Compared to the same period last year, the first 7 months of this year recorded a rise of 78.6% in the number of closed companies, 71.1% in the number of closed cooperatives, and 5.5% in the number of real people’s businesses closed.

Regarding new companies, the number of companies that were established in July this year dropped by 37.7% compared to the previous month.

At the beginning of this month, official Turkish data showed that the annual inflation accelerated to 79.6% last July, from 78.6% last June. Istanbul, the most densely populated city in Turkey, saw a price growth exceeding 99% in July, compared to the previous year.

While most of the world’s economies are moving to raise rates to curb inflation, Erdogan insists on cutting interest rates. After a series of interest rate cuts by the Turkish Central Bank last year, the Turkish currency lost more than half its value, before recovering slightly after a package of measures announced by the government in the last weeks of 2021.