ISTANBUL — Turkey’s March 31 local opinion polls are likely to be a turning point in the Turkish government’s economic policy, but the direction it will take depends on the outcome of the election, which President Recep Tayyip Erdoğan A lot depends on how much you want to satisfy.
Presidential and parliamentary elections in May 2023 ensured President Erdoğan and his Justice and Development Party another term in office. However, Turkey’s new economic management team appointed after these elections has not been able to move into full austerity mode as local elections are scheduled for March 31st. In particular, President Erdoğan and his Justice and Development Party have lost control of the local government of Istanbul, Turkey’s largest city and economic hub, which was lost to the main opposition Republican People’s Party in 2019, along with the capital Ankara and other major urban centers. Eager to take it back.
President Erdogan has long shown that he puts political goals above all else. His economic policies have also been driven by political objectives, even if they come at a cost. The high inflation currently plaguing Turkey’s economy is largely the result of President Recep Tayyip Erdogan’s controversial low-interest rate policy that he stubbornly pursued in the years leading up to last year’s polls. After his re-election, President Erdoğan appointed Mehmed Simsek, a member of the previous government and trusted both domestically and internationally, as finance minister and tasked with restoring Turkey’s economy. He also changed the management of the central bank.
What has changed?
