İSTANBUL - Economist Bahadır Özgür, stating that a more unstable economy will be faced globally because the coronavirus brought the production in China to a halt and that will increase the costs, said Turkey will also be greatly effected by this.

 

The coronavirus (Kovid-19), which originated in Wuhan, China and spread all over the world, also hit the global economy. With the spread of the virus in China, production in the country, which has the second largest economy in the world, has almost come to a halt.

 

We asked Economist Bahadır Özgür about the effects of the coronavirus to the economy of the world and Turkey.

 

GREAT IMPACT ON ECONOMY

 

Saying that the financial architecture established in the 90s collapsed with the 2008 crisis, Özgür stated that the economy, which has been very fragile since then, has been completely broken together with the coronavirus. Expressing that coronavirus unexpectedly caused panic in the markets, Özgür said: "China is one of the most important markets in the world as it is the country the where logistics, production and supply chain starts.  The virus that emerged there began to affect all western economies as it directly affected the production lines."

 

Emphasizing that the biggest reflection of coronavirus to the economy is through tourism, said with the coronavirus tourism, and therefore with highways, airlines and the sealines, tourism suffered a great blow. Drawing attention to the closure of even shops and restaurants in Italy, Özgür stated that the costs will increase and an even more unstable economy will be encountered.

 

CORONA DESTROYED ALL CALCULATIONS

 

Reminding the statement of President Tayyip Erdoğan, saying "We are expecting 58 million tourists and 41 billion dollars of tourism income this year", Özgür noted that the coronavirus has thrown this prediction into the trash.

 

Özgür, highlighting that Turkey will be greatly effected by this situation, said: "Turkey is already in crisis and having a hard time finding external sources. Turkey has an export based imports. Turkey has an export-based imports. In this case, the supply chain is hit because we get everything from China.Therefore, the costs are increasing. In other words, it will turn into something that also affects the country's production."

 

 

MA / Tolga Güney