Turkey’s poverty rate topped 12% last year – World Bank
ANKARA, April 27 (Reuters) – The World Bank on Tuesday estimated that Turkey’s poverty rate rose to 12.2 percent last year, from 10.2 percent in 2019, and said the return to low levels of ‘before the pandemic would be a challenge.
Turkey’s economy was one of the few in the world to grow in 2020 despite the fallout from the coronavirus, largely thanks to a credit boom around the middle of the year.
Headline inflation was around 12% – and nearly 20% for food – for much of last year before climbing. Tourism receipts fell sharply and exports fell, leading to a large current account deficit.
In response, the government has raised employee wages and banned layoffs, while bringing the unemployment rate under control.
âWhile the recovery in late 2020 has helped labor markets recover somewhat, many have been left behind, especially women, young people and low-skilled workers,â the World Bank said in its Turkey Economic report. Monitor.
“This, combined with high inflation, has probably hit the poor the most. Poverty is estimated to have risen to 12.2% in 2020 from 10.2% in 2019. Reduce the poverty rate to pre-pandemic levels is a challenge, âhe added. noted.
One measure of poverty, the Gini coefficient which is tracked by the World Bank, reflected a sharp decline in inequality in Turkey from 2005 to 2007 before it reversed. It has remained high since 2015.
National data shows that the seasonally adjusted underutilization rate, a reflection of how the pandemic is weighing on workers, increased for four months to reach a record high of 29.5% in January. It fell to 28.3% in February.
The World Bank has said the impact of the pandemic will be a “struggle to get rid” on a global scale, but Turkey’s economy is expected to grow 5% this year due to a recovery in exports.
He warned that rising inflation in advanced economies could lead to “destabilizing moves in global liquidity away from emerging markets” and added that the growth outlook could also be affected by a resurgence of COVID- cases. 19.
Reporting by Ali Kucukgocmen; Editing by Jonathan Spicer
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