ECONOMY OF TURKEY

Press, Volume XC, Issue 27490, 26 October 1954, Page 17

ECONOMY OF TURKEY

CRISIS PREDICTED According to the “Daily Telegraph’s” Istanbul correspondent, Turkey is running rapidly into a serious economic crisis. With wages stationary, the cost of living has risen by nearly 35 per cent, in the last six months, and large-scale speculative hoarding goes unchecked. Many necessary consumer goods are fast disappearing from the free market. Primary goods are also scarce, and such items as building materials have risen sharply in price. Unemployment has increased. During the first five months of this year, the foreign trade deficit amounted to about £26,125,000 compared with £8,625,000 for the same period last year. Exports have slumped, and even essential imports have had to be curtailed. Future prospects are no better. This year’s wheat crop is expected to yield 25 to 30 per cent, less than last year, at a time when international wheat prices are lower than ever. Meanwhile, the balance of payments position is deteriorating. The Prime Minister, Mr Menderes, had hope from America for a much larger slice of foreign aid, private trade credits, and capital for investment schemes. The, Americans reproach the Turks for extravagant spending of money derived from foreign credits and aid.