Focusing on combating internal security threats in the country, Erdogan's administration has ceased to pay due attention to the economy, says the US analytical publication National Interest.
The growth of terrorist and criminal activities in Turkey is a serious threat not only to the socio-political, but also for the economic situation in the country, according to National Interest. Degradation of internal security has led to a decrease in consumer activity and the level of investor confidence in the country. It also caused a reduction in the inflow of tourists into the country, which was dropped by 2016 26 percent compared with 2015 Given the significant weight of the tourism sector, this decline seriously aggravated the situation.
The rate of the Turkish lira against the US dollar since the beginning of 2017 fell by 10 percent and maintains a negative trend. The economy also demonstrates a serious risk of inflation. The central bank could improve the situation by increasing the interest rate and attracting additional foreign investment. But the financial regulator is completely under the control of the president, who declared himself an opponent of the "policy of raising interest rates," which, in his opinion, negatively affects consumer activity. In addition, despite the continued growth of the national debt, Ankara continues to invest in major infrastructure projects.
Suppression of terrorist and criminal activity in the country is certainly needed, but focusing only on security measures and ignoring the financial instruments, the Turkish administration may bring the situation to a serious economic recession. While Erdogan is strengthening personal power, in particular the preparation of constitutional reform, and the persecution of political opponents, the situation in the country continues to deteriorate.