The year 2022 has been one of radical foreign policy reversals by Turkish President Recep Tayyip Erdogan when he mended fences with Gulf powers and Egypt, showed readiness to meet Syrian President Bashar Al-Assad, and shifted his attention to economic woes ahead of crucial presidential and parliamentary elections in Turkey in 2023. 

The elections, to take place no later than June, will also bear on Turkey’s foreign policy, especially with regard to ties with the West.

Given the dire state of the Turkish economy, most analysts believe Erdogan will find it difficult to replicate his past electoral success. Erdogan expected the economy to be booming under his rule by now, making Turkey a leading international player and vindicating his one-man-rule in the eyes of domestic and foreign critics.

However, Turkey is seriously at odds with its traditional allies and partners today because of Ankara’s bellicose diplomacy, while its grossly mismanaged economy is in shambles. Turkey’s annual inflation rate skyrocketed to more than 80% over the months of 2022, climbing to a 24-year high. The Turkish lira lost some 30% of its value against the greenback this year. The deepening financial problems are largely blamed on Erdogan’s unconventional economic view. Erdogan has long argued that higher interest rates cause high inflation and under political pressure the Central Bank slashed the country's interest rates from 14% to 9% through successive cuts from August to November.