By Barış Soydan
May 11, 2020
Will the Turkish economy survive the Covid-19 pandemic? If the emergency measures remain in place for more than a few months – which they likely will, given that the pandemic is expected to last for at least a year, if not longer – what looms is a cumulative loss of economic output compared to which the 2001 financial crisis that blew up Turkish economy pales. A big slump, with bankruptcies, mass unemployment and government debt running at record highs loom on the horizon. The economic consequences of covid-19 are going to present Recep Tayyip Erdoğan with the toughest challenge that he has had to face during his seventeen years in power.
By Barış Soydan
February 11, 2019
It is impossible to understand the electoral successes so far of Recep Tayyip Erdoğan, the undisputed leader of Turkey since 2003, without taking the spectacular growth of consumerism in the country into consideration. Notwithstanding the fact that the neoliberal economic policies of the ruling Justice and Development Party (AKP) have disproportionately benefited the wealthiest in Turkish society, low-income earners have also benefited from the economic growth of the last sixteen years. Yet this growth has to a large extent relied on the quantitative easing program of the U.S. Federal Reserve. The end of quantitative easing will be consequential for Erdoğan and his party. Erdoğan is not going to be able to retain the same level of support that he has enjoyed among low-income earners. Get ready for substantial drops in AKP votes in the municipal elections in March.
By Barış Soydan
August 22, 2018
Last year, Turkey was the fastest growing economy among the G20 countries. Now it is going through a severe currency crisis. The lira has lost more than 40 percent against the US dollar this year. A recession is at the door. President Recep Tayyip Erdoğan accuses the United States of waging economic 'war' against Turkey and has threatened to ‘look for new allies’. Yet Turkey has no alternative to Western capital, and will sooner or later going to have to do whatever it takes to restore the confidence of Western investors.
By Gareth H. Jenkins
June 20, 2018
The rapid depreciation in the value of the Turkish Lira since the beginning of 2018 is the product not only of the collapse of any remaining vestiges of investor confidence in the regime of President Recep Tayyip Erdoğan but a symptom of the failure of the ruling Justice and Development Party (AKP) to address the long-standing structural vulnerabilities of the Turkish economy.
By Richard Weitz (vol. 5, no. 6 of the Turkey Analyst)
The decision of Chinese Vice President Xi Jinping to visit Turkey along with Ireland and the United States during his ten-day world tour before becoming president in about a year underscores the importance Turkey holds for China’s leaders. The AKP government’s desire for new partnerships and Turkey’s eagerness to join other states in benefitting from the strength of the Chinese economy has contributed to this flourishing relationship. Their growing mutual attraction has led them to overlook their diverging policies regarding some regional issues, such as Syria and the status of ethnic Uighur Turks in China, and instead concentrate on cultivating mutual economic and strategic ties. But that situation may not endure. Beijing will have to pay close attention to the power struggle within the governing coalition of Islamic movements in Turkey, and its implications for the future evolution of Turkey’s foreign relations.
The Turkey Analyst is a publication of the Central Asia-Caucasus Institute & Silk Road Studies Joint Center, designed to bring authoritative analysis and news on the rapidly developing domestic and foreign policy issues in Turkey. It includes topical analysis, as well as a summary of the Turkish media debate.