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One year on, Turkey's coup attempt has impacted economy

Turkey's state of emergency since last year's coup attempt has been instrumental in averting a serious economic crisis, while also marking a process of "wealth transfer" through the seizure of hundreds of private companies.
Turkish soldiers surrender their weapons to policemen during an attempted coup in Istanbul's Taksim Square, Turkey, July 16, 2016.  REUTERS/Murad Sezer TPX IMAGES OF THE DAY - RTSI83F

Turkey will mark the first anniversary of last year's coup attempt on July 15, which has had a profound impact on the country's political outlook and public life, including the economy. In the third quarter of 2016, a period that covered the putsch and its immediate aftermath, the Turkish economy contracted for the first time in a long while. Ironically, the state of emergency instituted after the putsch, which enabled the government to bypass parliament and issue legislative decrees, became instrumental in generating a fresh growth momentum and thus pulling the economy from the brink of crisis. In another notable process that transpired in the economic realm, Ankara seized hundreds of companies from alleged followers of US-based cleric Fethullah Gulen, the accused mastermind of the coup, and has since transferred many of them to third parties.

In the first half of 2016, prior to the putsch, Turkey's economic growth rate stood at about 5%. The inflow of foreign capital, a vital resource for the Turkish economy, had slowed down but thanks to official reserves and the mysterious inflow of hard currency of unknown origin, the price of the dollar remained in the 2.85-2.90 lira range.

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