What Next for Turkey's Economy and Stock Market?

The Turkish government thwarted an attempt by a faction of the army to gain control of the state at the weekend. What happens next for the nation?

External Writer 19 July, 2016 | 3:14PM
Facebook Twitter LinkedIn

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Erdinç Benli, Investment Director for Emerging Market Equity strategies at GAM, discusses what is next for Turkey.

Why Was the Coup Unsuccessful?

The Turkish government thwarted an attempt by a faction of the army to gain control of the state at the weekend. Thousands of citizens helped to prevent the mobilisation of the military by following politicians’ calls to gather in public places. The coup also failed to find support with political opposition parties, or to secure widespread military backing. The government now seems to have regained control and thousands of soldiers, high-ranking generals, and policemen involved in the coup have been arrested.

What Does it Mean for the Economy?

There was already a heightened level of political uncertainty in Turkey and the attempted military coup has only served to increase this. Statements from politicians and commentators indicate that the risk of a snap election is currently low. This would potentially increase the power of AKP and strengthen the move towards a presidential system. Turkey’s economy has performed surprising well recently. However, following the terror attack at Istanbul airport and the attempted coup, Turkey’s economy is expected to decelerate from +3.5% GDP growth for 2016.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

External Writer  .