The official noted that the AKP could pivot to a more balanced programme if it wins the vote, given Erdogan's recent comments that former finance minister Mehmet Simsek could return to help shape policies. It will be like a lost year," the AKP official said, adding stronger economic growth would be expected in 2024. On the other hand, they say the current government could face its own volatility as its policy programme runs out of steam and could need a revamp.Īn official from Erdogan's ruling AK Party (AKP) said the economy, especially the cost-of-living crisis facing Turks, presented difficulties for its election campaign. The main opposition alliance, which is leading in some opinion polls, promises to free up the economy and financial markets from state controls and return independence to a central bank that would then aggressively raise interest rates to cool inflation.Įrdogan's ruling party said it would press on with its low-rates and high-growth programme despite inflation at 44% and depleted FX reserves after years of authorities stabilising the lira currency.Īn opposition government could face economic and market instability as an overvalued lira weakens and as monetary stimulus is removed, analysts say. ANKARA, May 10 (Reuters) - Turkey's economy is bracing for a "lost year" no matter who wins landmark elections on Sunday, political insiders say, even if the opposition pledges to tear down President Tayyip Erdogan's unorthodox policies.
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