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Beyond Inflation: Industrial Capability and External Resilience in Pakistan and Turkiye
By contrasting two different economies, this brief explores factors affecting the level of inflation that is tolerable while promoting growth. It concludes that structural factors, including logistics, productivity, governance, and fiscal capacity, drive long-term resilience. This brief assesses factors that affect economic fundamentals and their importance in understanding how high an inflation rate an economy can tolerate while growth is still promoted. By exploring these factors through two contrasting economies, the lessons identified indicate that it is important not to limit the discussion to a single indicator as structural factors, including logistics, productivity, governance and fiscal capacity can all drive long-term resilience.
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