Turkey’s saw relatively strong economic growth in 2020 compared to other countries but at the same time its poverty rate climbed and unemployment became more prevalent, according to the World Bank’s latest Turkey Economic Monitor. 

Job losses impacted poorer citizens more substantially than others and the proportion of people in poverty rose from 10.2% in 2019 to 12.2% in 2020, the international financial institution said in an estimate, adding that bringing the poverty rate back to pre-pandemic levels would present a challenge.

The coronavirus-hit year’s dynamics “translated into nearly 1.5 million additional poor, a total of 8.4 million nationally, erasing almost all gains achieved in the three years preceding the economic turmoil”, the World Bank stated.

It added: “While the recovery in late 2020 has helped labour markets recover somewhat, many have been left behind, especially women, youth and lower-skilled workers.”

Turkey’s poverty rate was 15.2% in 2010, but it declined gradually to reach 8.5% in 2018, data from the institution also showed. 

Coming so soon after the previous economic shock felt by Turkey, the impact of the COVID-19 crisis was expected to increase poverty even further, the report warned. 

One measure of poverty, the Gini coefficient that is tracked by the World Bank, showed a steep drop in inequality in Turkey from 2005-2007 before it reversed course. It has remained elevated since 2015.

The World Bank anticipated that Turkey would see 5% GDP growth this year, driven by an export recovery. However, it warned that rising inflation in advanced economies could lead to “destabilising movements in global liquidity away from emerging markets”.