Skip to main content

Turkey’s AKP stumbles in efforts to restore economic confidence

Turkey’s economic confidence indicators show the government has a long way to go in overcoming the credibility erosion it has suffered over the past two years.
GettyImages-1147570221.jpg
Read in 

Turkey’s ruling Justice and Development Party (AKP) has made little headway in restoring economic confidence among consumers and investors since economic turmoil hit in 2018, a setback that will inevitably bear on its political fortunes as it marks its 18th year in power. Indicators reflecting domestic and foreign confidence in the country’s economy remain lackluster even after drastic government moves to sway central bank policies in a bid to jumpstart economic revival.

The electorate’s economic grievances bore heavily on the AKP’s defeats in the local polls in spring 2019 amid a sharp downtick in consumer and sectoral confidence indices since 2018, when a severe currency shock fueled economic recession in the second half of the year. Soon after the elections, the government replaced the central bank’s governor and senior managers, moving to directly influence the bank’s decisions and stimulate economic recovery through rate cuts.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.