Economic news.
Turkey became very cheap country to travel in 2019.
On the 15th of June Moody’s downgraded Turkey’s sovereign credit rating to B1 from Ba3 with negative outlook.
Despite slight fall of inflation, around 2% since the beginning of 2019, and Lira’s strengthening from the highs of 2018 (7,84 € in August), Turkey’s economy is still very weak to external shocks.
Turkey’s financial system is still highly dependent on external capital investments which would be harder to attract in future. Low foreign reserves would continue to reduce due to the need of payments on debt obligations.
Political pressure from the United States regarding the deal with S-400 missile systems from Russia can lead to additional economic sanctions, which will make Turkey’s debt and stock market too risky for foreign investors.
Turkey’s representatives pointed out that Moody’s left unnoticed very positive developments like falling inflation and rising tourism revenues (see chart below).
Technical indicators predict soon recession in Turkey also. In Brazil, Mexico and the Philippines, long-term bond yields fell below short-bond rates, as a result of which the yield curves of securities were inverted. It has also happened in South Korea, Argentina and Turkey.
We will definitely see lower rate of Lira, because strong currency would not help budget. Turkey would be cheap to travel in 2019.
Tourism news.
In the time of political and financial crisis, we see growing tourist flow to Turkey. German tour operator TUI declares 40% rise in comparison with 2018 in Turkish destinations bookings. Thomas Cook shares the information that due to the situation with Brexit, British tourists prefer to travel to non-EU countries and Turkey has become the second most popular destination after Spain.
In the meantime, first-ever Turkey’s coffee museum is opened in the northern province of Karabük’s Safranbolu district — a UNESCO World Heritage site, which offers more than 40 types of coffee. The dream of coffee lovers!
New tourist only Eastern Express has launched from Ankara railway station. Tourists can enjoy the beauty of Eastern part of Turkey on the way to Kars region. Tickets: TL 400 charged for a single compartment and TL 250 per person for a double compartment.
Turkey is still very affordable place to travel in 2019.
