Turkey is Experiencing a Deep Economic Decline and Moving Towards a Severe Recession

Turkey is experiencing a deep economic decline and is moving towards a severe recession, according to Robin Brooks, chief economist at the Institute of International Finance (IIF).

"The so-called credit impulse in Turkey is now the most negative in its history," he stated in comments on Twitter. He pointed out that "this indicates a profound recession, but a stabilization of the lira."

On Friday, the Turkish lira again saw a decline against the US dollar, reaching a record low of 8.3531 lira to one dollar.

Investors report that the central bank's inability to raise the base interest rate is contributing to the currency's collapse.