The number of unemployed people in Turkey decreased to more than 3 million and 264 thousand in 2023 (Shutterstock)

The unemployment rate in Turkey declined during the year 2023 to the level of 9.4%, recording the lowest level in the last ten years. This came according to data published by the Turkish Statistics Authority on Monday about unemployment for the year 2023.

The number of unemployed people reached 3 million and 264 thousand in 2023, recording a decrease of 318 thousand people compared to 2022.

Unemployment recorded 10.4% in 2022, while it reached 8.9% in 2013, recording its lowest level in 10 years last year.

Turkish President Recep Tayyip Erdogan announced last October that his government aims to raise the per capita national income to 17 thousand dollars by the year 2028, reduce the unemployment rate to the level of 7.5% by 2028, raise exports to 375 billion dollars, and reduce Inflation to be permanently in single digits, reaching 4.7% in 2028.

He added that the government also aims, within the framework of the development plan for the period between 2024 and 2028, to achieve an average stable and balanced growth rate of 5%, and to reach national income to 1.589 trillion dollars in 2028.

Erdogan stressed at the time that the plan is based on important main foundations, most notably a quality workforce, a strong family, stable growth, a strong economy, green and digital transformation, and competitive production, in addition to democratic administration based on justice.

The Turkish Central Bank suddenly raised interest rates to 50% (Anatolia)

Raising interest

Last Thursday, the Turkish Central Bank unexpectedly raised the key interest rate by 500 basis points to 50% from the 45% level, indicating deteriorating inflation expectations, and pledged to continue tightening monetary policy until there is a significant and sustainable decline in this trend, and this comes before... Municipal elections scheduled to be held at the end of this month.

The sudden move led to the lira rising 0.6% to 32.2 against the dollar after weeks of continuous decline.

"The monetary stance will be maintained tight until a significant and sustained decline in the underlying trend in monthly inflation is observed and inflation expectations converge to the expected range," the Monetary Policy Committee said.

She added that policy will be tightened if a significant and sustained deterioration in inflation is expected.

Inflation rose to a higher than expected level of 67% last month when the central bank kept interest rates unchanged after a continuous series of rises.

Although inflation is expected to decline around the middle of the year, the recent decline of the lira and the decline in foreign reserves have raised some expectations of higher interest rates in the future.

Source: Al Jazeera + Anadolu Agency