ASSESSMENTS

As Turkey Enters 2019, Its Economic Woes Are Never Far Away

Nov 28, 2018 | 13:30 GMT

Vendors sell nuts as people shop under a banner reading "An End to Inflation" in Istanbul's Eminonu neighborhood on Nov. 6, 2018. Inflation has become a major problem in Turkey since the country's economy tanked in 2018.

(OZAN KOSE/AFP/Getty Images)

Highlights

Since many of Turkey's woes are driven by external factors, the government will struggle to manage the country's economic fragility in 2019.
Because of the economic headwinds, Turkey will seek to minimize some tensions with Western governments such as the United States and the European Union, but it won't abandon its national security goals, including military activities in Iraq and Syria.
Because of the effect that the flagging economy could have in the lead-up to elections in March 2019, the ruling party will likely pursue more flexibility in its political alliances.

Turkey has endured more than its fair share of economic hardships in 2018, but its annus horribilis might portend even greater trials and tribulations in the year to come. Inflation reached record levels, going as high as 25 percent in September, a month after the value of its currency dropped to the unprecedented level of almost 7 liras to the dollar, striking investors with fear. Watching on wearily, consumers could only express their despair as the prices for staples soared. And far from shoring up confidence in the economy, the government and its plans to tackle the crisis simply invited derision....

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