Prof. Dr. Demiralp: “There is a risk of stagflation in Turkey in the 3rd quarter.”

Prof. Dr. Selva Demiralp

Koç University faculty member Prof. Dr. Selva Demiralp said, “I expect a slowdown in the third quarter. Based on this, we can also say that there is a risk of stagflation.”

Koç University faculty member Prof. Dr. Selva Demiralp, speaking on Bloomberg HT, said, “If we look at the growth data, we see an accumulation of stocks. This is considered one of the leading indicators of a slowdown in macroeconomics literature. This may not be exactly the case in Turkey. In an inflationary environment, there is stockpiling, and if there is accumulation beyond demand, it also indicates that demand is slowing down and production is stuck. Therefore, I expect a slowdown in the third quarter. Based on this, we can also say that there is a risk of stagflation. In the third quarter, while we see a slowdown, on the other hand, we also see inflation rising. When these two come together, it is technically called stagflation.”

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