Earthquake sends tremors through Türkiye's fragile economy

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Türkiye's sovereign debt levels are relatively low, meaning the government has some leeway to issue long-term debt.

On the downside, foreign investors have shunned Türkiye because of Erdogan's unorthodox economic views, which include an ill-fated attempt to fight inflation by slashing interest rates.

When the quake hit, Türkiye 's annual inflation rate had slowed from a two-decade high of 85 percent last year to 58-percent."Despite the uncertainty and different factors at play, such as global economic conditions and internal political expectations, the Turkish economy is likely to stagnate or grow below its natural rate," economist Murat Kubilay wrote in a note online.

 

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