TRNC economy needs reforms: experts warn of rising inflation and debt load

The economic situation in the Turkish Republic of Northern Cyprus continues to be a major topic of public discussion. Representative of the People's Party and economist Ahmet Melih Karavelioğlu spoke out with sharp criticism of current financial policy, stating the need for urgent structural reforms and greater transparency from state authorities.

The grounds for criticism were the lack of official publication of April inflation data, while Turkey has already released its relevant statistics. According to Karavelioğlu, such delays undermine the trust of citizens and businesses in economic institutions. The economist claims that the actual rise in the cost of living since the beginning of the year significantly exceeds official expectations and is particularly painful for food, fuel, and utility prices.

According to his assessment, the TRNC's public debt has reached approximately 22 billion Turkish Liras. Karavelioğlu stated that the authorities are forced to increasingly resort to borrowing to cover current expenses, primarily public sector salaries. He also warned that the banking system's capacity for further lending is limited.

The expert paid special attention to the state of agriculture and livestock. High costs of imported feed, rising production costs, and a lack of new producers, according to him, are leading to a gradual weakening of the agricultural sector. As one measure, he proposed revising the meat supply system and developing new mechanisms to support local producers.

Karavelioğlu also criticized the structure of the state apparatus, calling it bloated and insufficiently effective. In his view, the country needs long-term reforms aimed at increasing productivity, supporting the private sector, and creating a sustainable economic model.

Despite the difficult situation, the expert emphasized that the TRNC possesses significant potential in tourism, education, and services. However, to realize these opportunities, he believes a consistent economic strategy, investor confidence, and a rejection of short-term populist decisions are necessary.