The crisis in the Turkish economy continued in 2024. As in previous years, the government's economic policies neither helped to control inflation nor achieved the economic growth target. High inflation adversely affected large segments of society, while inequality in income distribution peaked.

 

RECESSION IN THE ECONOMY

 

Contrary to the government's perception that "the economy is growing", there was a slowdown in economic growth in 2024. As of the second quarter of 2024, the slowdown resulted in a contraction. Turkey's economy technically entered a recession. According to TurkStat's data for July-August-September 2024, the economy shrank by 0.2 per cent in the quarter in question compared to the previous quarter. While this situation indicates that the Turkish economy has technically entered a recession, the industrial sector has shrunk due to the recession, and business closures have started.

 

14 THOUSAND 828 COMPANIES CLOSED

 

According to the data of the Union of Chambers and Commodity Exchanges of Turkey (TOBB); The number of companies closed in the January-July period of 2024 increased by 28.3 percent compared to the same period last year. Thus, the number of companies closed until July 2024 reached 14 thousand 828. While there was an increase in the number of closed companies, the number of established companies also decreased. While 73 thousand companies were established in the first 7 months of 2023, 62 thousand 389 companies were established this year with a 14.5 percent decrease.

 

According to the Confederation of Turkish Tradesmen and Craftsmen (TESK) data; 51 thousand 55 tradesmen closed their shutters in the January-July period. Many businesses with debt payment difficulties have resorted to concordat. According to the data of Konkordatotakip.com, the number of companies declared concordat in the January-July period reached 788.

 

WORKERS' SHARE OF NATIONAL INCOME FELL

 

Exports, which lost momentum due to lack of foreign demand and high costs, directly affected the manufacturing industry. Again, this situation led to a decrease in the incomes of labourers and a rapid increase in unemployment. In addition to the existing data, the share of the working class in national income decreased. This share, which was 40.4 percent in the second quarter, dropped to 36.4 percent in the third quarter.

 

BROADLY DEFINED UNEMPLOYMENT

 

2024 was also a year in which broad-defined unemployment peaked in Turkey. Unemployment figures increased after the shrinkage in the industry. The unemployment rate (seasonally adjusted) increased by 61 thousand people compared to the previous month and reached 3 million 175 thousand people. The unemployment rate increased by 0.1 points to 8.8 percent. This rate was 6.9 percent for men and 12.3 percent for women. Broadly defined unemployment increased by 1.9 points to 27.6 percent in October. Thus, the number of broad-defined unemployed increased by 990 thousand people in October. Thus, the total number of unemployed became 11 million 246 thousand.

 

2024 was a year in which gender inequality in employment continued in Turkey. In October, the average employment rate across the country was 49.9 percent. This rate was 67.4 percent for men and 32.8 percent for women.

 

WORKERS WERE SLAUGHTERED IN 2024 AS WELL

 

Turkey ranks 10th among the countries with the highest number of labour massacres in the world. According to the data of the Worker Health and Worker Safety (ISIG) Assembly; In 11 months of 2024, there were at least one thousand 708 work murders.

 

SECOND IN HIGH INFLATION

 

The problem of the cost of living and inflation in Turkey continued in 2024. According to TURKSTAT data, although inflation fell to 47.09 percent in November, the 12-month average remained above 60 percent. According to ENAG, annual inflation was 86.76 percent and monthly inflation was 4.06 percent in November. In 2024, Turkey maintained its position as the second country after Argentina among developed and emerging economies with the highest official inflation. Turkey also maintained its first place in food and energy inflation among OECD countries.

 

THE GOVERNMENT IS NOT SATURATED WITH DATA!

 

Tax injustice continued. According to the data of Tax Expert Ozan Bingöl; In the first 11 months of 2024, a total of 6 trillion 597 billion TL tax was collected in Turkey. This means that approximately 13.7 million TL per minute, 822 million TL per hour and 19.7 billion TL per day were paid in taxes. Despite this, the budget deficit was realised as 1 trillion 276 billion TL in the same period.

 

1 TRILLION 195 THOUSAND TL TO INTEREST IN 11 MONTHS

 

In the first 11 months, the amount paid for interest reached 1 trillion 195 billion TL. In the same period, investment expenditures constituted only 8 percent of total expenditures. Thus, it was revealed that the share allocated to interest was higher than investment expenditures.

 

INCOME INEQUALITY INCREASED 15 TIMES

 

Another data released in 2024 was on the injustice in the distribution of income and wealth in Turkey. According to TURKSTAT data, in 2023, the richest 20 percent in Turkey received 49.8 percent of the national income, while the richest 10 percent received an average of 15 times more income than the poorest 10 percent. The data also showed that the per capita income differences between the regions are increasing. According to TURKSTAT data; per capita income in provinces in Kurdistan declined to one third of those living in Marmara.

 

THEY BOTH RECEIVED A SMALL SHARE AND WORKED HARD

 

The year 2024 was one of the years in which poverty was socialised. 2024 was a year in which workers, youth, women and children struggled with poverty. In terms of the share of workers' wages in national income, Turkey was the country with the lowest share of national income among European countries. Despite receiving a low share, workers worked more hours than workers in European countries. While workers in Switzerland, which has the highest share in national income, worked only 36 hours a week, workers in Turkey, which has the lowest share in national income, worked at least 42 hours a week.

 

The share of minimum wage earners in total wage earners reached 50 per cent. Workers in Turkey received the fifth lowest minimum wage in the OECD. In 2023, the average pension was 26 percent below the minimum wage. Again, only 1 out of every 3 women in Turkey is employed. This is one of the leading causes of women's poverty. In terms of percentage share in relative poverty (2019-2021), Turkey ranked second after Colombia in child poverty. Accordingly, 338 out of every thousand children suffer from poverty.

 

BUDGET DEFICIT BROKE A RECORD

 

2024 was a year of peak budget deficit in Turkey. Turkish economy posted a budget deficit of 1 trillion 260 billion TRY in the January-October period of 2024. In the same period, Treasury cash deficit was 1 trillion 700 billion TL.

 

TOWARDS UNCERTAINTY

 

It is a matter of curiosity how the crisis in the economy will be reflected in the next year. Many experts, while interpreting the picture in question, define the economy of 2025 as an "uncertain" year.

 

MA / Selman Güzelyüz