All commentators, whether Turkish or foreigner, seem to agree on one thing regarding the outcome of recent Turkish elections: The people are not happy with the current status of the economy, and miss the good old days! So what has changed from the early years of Ak Party rule during early 2000’s and now? Have the fundamentals of Turkish economy deteriorated that badly?
The answer is, No. Albeit some may criticize that the economy was overheating and the growth funded by external money mostly depending on domestic demand which was not sustainable (and which is true as well to some extent), the real reason of the turmoil now seems to be confidence and credibility of economy management, rather than macroeconomics of the country, which relatively are in good shape as said. Truth be told, the markets don’t seem to favor Mr. Erdogan’s rhetorical regarding, first and foremost, “the inflation stems from interest rates” argument and the fact that he is now the sole decision maker on economic matters.
But wasn’t this always the case? And isn’t it normal, to a certain extent of course, the president bearing the risk of economy policies (as demonstrated in the current elections btw)? So what’s the catch here?
Whilst it is a fact that there were certain events which were difficult for all to process during the recovery phase of the coup, it is also a fact that a) Turkey has successfully recovered from the coup (which many developed nations even couldn’t have!) and b) Mr. Erdogan once again gained the vote of confidence till 2023.
Therefore if this period is used wisely for structural reforms and if Ak Party returns to market-friendly policies under management of credible and competent professionals, it is very, very likely that the whole World may be talking about Turkey’s second (and biggest) leap forward by the year 2023.
It is all in the hands of Mr. Erdogan now, once again.