Turkish President Erdogan’s arrest of his chief rival, Ekrem Imamoglu, has raised concerns among investors about the country’s democratic direction. Despite initial market gains, analysts warn that Erdogan’s actions will continue to damage Turkey’s economy.
The recent stock market surge may be seen as a temporary reprieve, but it does not address the underlying issues with Turkey’s democracy. The country’s economic future is closely tied to its democratic stability.
Erdogan’s government has been criticized for suppressing opposition and undermining democratic institutions. This has led to a decline in investor confidence and a sharp decline in the Turkish lira’s value. Any further erosion of democratic norms will likely have severe economic consequences.
As the situation in Turkey continues to deteriorate, investors and analysts are left wondering what the long-term effects will be on the country’s economy. One thing is certain: Turkey’s democracy crisis will have far-reaching consequences for its economy and global relations.
Source: https://www.economist.com/europe/2025/03/24/turkeys-anti-democratic-crackdown-is-damaging-its-economy