Turkish Cypriot Economy, March 2021 : Impact of the COVID-19 Pandemic – A Path to Building Back Better
The special topic of this edition of the Macroeconomic Monitoring report focuses on the TC administration’s ‘public’ financial support to the agriculture sector. Due to the Turkish lira depreciation, the recent adverse climate conditions, and exace...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/774861620796239281/Turkish-Cypriot-Economy-Impact-of-the-COVID-19-Pandemic-A-Path-to-Building-Back-Better-Special-Issue-Improving-the-Effectiveness-of-Public-Funds-in-Agriculture http://hdl.handle.net/10986/35588 |
| Summary: | The special topic of this edition of the
Macroeconomic Monitoring report focuses on the TC
administration’s ‘public’ financial support to the
agriculture sector. Due to the Turkish lira depreciation,
the recent adverse climate conditions, and exacerbated by
the COVID-19 crisis, the agriculture sector suffered
significantly in 2020. However, the severe impact on the
sector was also the result of several long-standing
inefficiencies and low productivity. Financial support from
the central budget for agriculture comes at a significant
fiscal cost to the overall TC economy, while at the same
time agricultural productivity has been stagnating. The
COVID-19 pandemic has served to exacerbate these existing
challenges through disruptions along the food value chain.
These problems have affected small-sized farmers the most,
given that they are the most vulnerable to income shocks and
higher retail prices. Reforming the subsidy system for
agriculture could help generate greater fiscal space in the
medium term, and also help foster economic diversification
and enhance productivity. |
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