Turkey’s coronavirus pandemic response.
The world economy suffers due to coronavirus pandemic. Almost every country on the planet experience a decline in economic activity. The International Monetary Fund compares it with the Great Depression of The 1930s when many people lost their jobs, houses and couldn`t afford a proper meal.
Change in economic indicators 1929–32
|
United States |
United Kingdom |
France |
Germany |
|
|---|---|---|---|---|
|
Industrial production |
−46% |
−23% |
−24% |
−41% |
|
Wholesale prices |
−32% |
−33% |
−34% |
−29% |
|
Foreign trade |
−70% |
−60% |
−54% |
−61% |
|
Unemployment |
+607% |
+129% |
+214% |
+232% |
Source:Jerome Blum, Rondo Cameron, Thomas G. Barnes,The European world: a history(2nd ed 1970) 885 pp.
We can`t measure yet the results of ongoing crises.
Next survey presents increasing concerns among SMEs.
|
SME Surveys on the Impact of COVID-19 (coronavirus pandemic) |
|||
|---|---|---|---|
|
Date |
Country |
Coronavirus pandemic impact on business |
Expectations |
|
10 Feb. |
China |
80% of SMEs have not resumed operations yet |
1/3 out of business in 1 month, another 1/3 in two months |
|
25 Feb. |
Finland |
1/3 anticipated a negative or very negative impact |
n.a. |
|
Early March |
Italy |
72% directly affected |
n.a. |
|
Early March |
UK |
63% see crisis as moderate to high/severe threat to their business |
n.a. |
|
9 March |
Germany |
50% expect a negative impact |
n.a. |
|
9 March |
Japan |
39% report supply chain disruptions, 26% decrease in orders and sales |
n.a. |
|
10 March |
Poland |
1/3 of SMEs experience increasing costs and reduced sales |
27% already encounter cash flow problems |
|
11 March |
USA |
70% experience supply chain disruptions, 80% the impact of the crisis |
n.a. |
|
12 March |
UK |
69% experience serious cash flow problems |
1/3 fear being out of business in 1 month |
|
13 March |
USA |
23% negatively affected, 36% expect to be |
|
|
16 March |
Canada |
50% drop in sales |
25% expect not to survive longer than 1 month |
|
16 March |
Israel |
55% experienced no impact yet, 1/3 planning lay-offs |
n.a. |
|
16 March |
Greece |
60% experience marked decline in sales |
n.a. |
|
17 March |
USA |
50% negatively affected, 75% very concerned |
n.a. |
|
17-20 March |
Korea |
61% have been impacted |
42% fear being out of business in 3 months, 70% in six months |
|
18 March |
Belgium |
75% report declines in turnover |
50% fear not to be able to pay costs in the short term |
|
19 March |
USA |
96% have been affected |
51% indicate not be able to survive three months |
|
20 March |
Hungary |
60% expect a decline in sales |
n.a. |
|
20 March |
Netherlands |
50% start-ups lost significant revenue |
50% expect to be out of business within 3 months |
|
21 March |
Japan |
92% experience economic impact |
n.a. |
|
24 March |
Canada |
60% experience significant impact |
1/3 expect to be out of business in a month |
|
31 March-6 April |
Several Asian countries |
30% of SMEs expect to lay off 50% of their staff. |
50% of SMEs have a month cash reserves or less |
|
1 April |
United Kingdom |
n.a. |
18% of firms could be out of business in one month |
|
1 April |
United States |
n.a. |
35% of small business out of business in three months |
|
3 April |
Australia |
Two thirds of small business experience the impact of the crisis. 41% experience a drop in income of 50% or more in the last two months |
n.a. |
|
3 April |
Belgium |
40% of companies see drop in revenue of 75% or more |
1 in 10 companies likely to face |
Source:Annex B; oecd.org
In order to minimize the negativities caused by coronavirus pandemic, governments take economic responses and change tax and fiscal policies.
TURKEY
If the company reduced working hours, it didn`t deduct a number of employees and employees meet the following conditions:
-Having fulfilled the last 60 days of service contract before the start of the Short Work Allowance application;
-In the last 3 years, at least 450 days must have been paid.;
then it is possible to benefit from the Short Work Allowance for a maximum of 3 months.
Turkish government paid 60% of the staff salaries for a period of three months and a daily allowance of 39.24 liras ($5.7) to workers forced to take unpaid leave – Short Work Allowance.
Payment of social security contributions (SGK Premium Payments) for some sectors, persons over 65 years old, and those with chronic diseases have been postponed.
Sectors:
Retail (including shopping malls),
Health Service,
Furniture manufacturing,
Iron, steel and metal industry,
Mining and quarrying,
Construction,
Automotive manufacturing,
Rent a car,
Logistics and transportation,
Cinema and theater,
Publishing activities,
Accommodation activities,
Food and beverage services,
Textile-apparel manufacturing,
Event and organization services.
On 31st July, VAT has been reduced to 8% from 18% until 31 December 2020 on the following: events and conferences; cultural events; domestic repairs; hospitality services.
Hotel accommodation and services are free of VAT until November.
Air transport, domestic flights VAT has been reduced from 18% to 1% for 3 months.
Corporate tax-paying have been postponed.
Bank loan and interest payments are postponed for at least 3 months.