The Turkish economy has experienced significant growth and development under the AKP government, with exports increasing by four times in 2022. However, the country has been plagued by the devaluation of its national currency, the Lira, for the past decade. Critics have linked this devaluation to the refusal of the Turkish Central Bank to raise interest rates. In May 2023, after facing criticism, the government changed the governor of the bank and interest rates were raised. Despite this, the depreciation of the Lira continues. Does this mean that interest rates do not play a significant role in stabilizing the national currency?

Experts point out that understanding the current macroeconomic situation of Turkey requires a ten-year perspective considering various political, economic, social, and health events. The Turkish economy has grown over the past ten years, with some exceptions during the coup attempt in 2016, the Priest Crisis with the United States in 2018, and the pandemic in 2020. The main reason for the decrease in the total GDP in USD is inflation and the rapid movements in the exchange rate.

While the recent interest rate hike is a step towards combatting inflation, experts caution that there is no quick fix for Turkey's economic problems. The economy requires time and efforts to restore conventional economic policies and achieve long-term stability. It is also suggested that the government regulate markets to prevent excessive price hikes and work towards a fairer distribution of wealth. Increasing exports and attracting foreign direct investments are seen as key steps in achieving economic stability.