Turkey’s economic policies could change after election

Significance

The Joint Policies Agreement (JPA) issued by the NA in January promises to end President Recep Tayyip Erdogan’s unorthodox monetary policies that have worried international investors and saw inflation end 2022 at 64% year-on-year.

Impacts

• The Turkish economy would continue to face the risk of volatile exchange and interest rates, inflation and growth.
• The climate for investment and doing business would improve but potential pitfalls would remain.
• Policy disputes among the NA parties might increase over time, especially if they manage to reinstate a parliamentary system.