Turkey's Economy

In: Social Issues

Submitted By bgoode69
Words 750
Pages 3
Political scandals and possible increased interest rates have lowered the expectations of Turkey’s economic growth for this year. The December corruption investigation that lead to the arrest of about 50 people including highly esteemed businessmen, the leader of the state-owned bank and the sons of three ministers spread rapidly in the international news market. The events have “put pressure on administration officials and the Central Bank to alter monetary policy to protect the lira and deter risk-adverse foreign investors from selling off Turkish debt. (APCO, 2014)”

Turkey’s corruption scandal was set off by a telephone conversation in December allegedly with Prime Minister Recep Tayyip Erdogan telling his son to get millions of dollars out of the house for fear of an investigation. The conversation was denied by Erdogan’s office however it lead to a series of early morning home and office raids of his acquaintances. “The crisis has damaged Turkey’s already troubled economy (Arango, 2014)”. Countries have now looked at the government as somewhat untrustworthy and not capable of continuing current businesses. In February, citizens of the country protested and chanted for the government to resign. This only left the country in more turmoil and curious of whom would be elected in the upcoming March elections. By 45% popular vote, Erdogan was the winner however it is still unclear of what could come of Turkey’s economy.

Under Erdogan, Turkey has thrived on a decade of solidity and wealth. Erdogan has promised a sound macroeconomic policy, backed originally by the International Monetary Fund and later by financial markets. He has also entertained the prospect of joining the European Union, in which membership negotiations were opened in October 2005. With him elected into office again, Turkey now has a risk of losing both.

The country has…...

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