COVID-19 and the outlook of the Turkish economy

Abstract

Measures including travel restrictions, temporary suspension of service sector activities and confinement at home have brought interaction between individuals and countries to almost a halt. Due to the sudden supply and demand shocks on the economy due to the implemented measures, the economic recession process has begun in the countries. The disruptions caused by the epidemic in real and financial markets have plunged countries into a large-scale and unprecedented economic crisis. Countries that were simultaneously dragged into crisis resorted to monetary policy and fiscal policy tools to combat the crisis. Support packages have been announced in Turkey, as in the world, in order to eliminate the negative conditions of the epidemic. When looking at the macroeconomic indicators before and during the epidemic, it is possible to see the damage caused by the epidemic to the country's economies. In this study, the outlook of the country's economy during the crisis and the policies implemented towards the crisis are examined.