The mask is off
Political turmoil exposes economic malaise
A SENSE that things are sliding out of control has gripped Turkey since prosecutors launched a series of investigations into bribery and corruption close to the government in mid-December. Even if official charges and convictions never materialise, enough has come out to unsettle foreign and local investors. It casts serious doubt on the independence of the country’s police and the judiciary, and their ability to enforce the law.
Turkey suddenly looks more like the country it was trying to leave back in the shadows a dozen years ago. Inflation is running at over 7%, the currency is sliding and the current-account deficit is around 7% of GDP. Private savings, foreign investment and exports are shrinking.
This article appeared in the Finance & economics section of the print edition under the headline “The mask is off”
From the January 11th 2014 edition
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