Erdogan's Party Split On Economy Pre-runoff

AKP Split On Economy Before Election - Reports

On April 19, 2023, a market stall in Ankara's Ulus district had a variety of candy and sweets. Shoppers were looking around at the different options.

A group of people are chatting about another option to President Erdogan's economic plan. This is happening shortly before he tries to secure another term. The meeting is casual and not official.

Some members of Erdogan's party are arguing about his economic policies. They don't think they're sustainable. This is happening right before Turkey's second election.

A group from the AKP is thinking about if the leader should stop lowering interest rates and spending money to help the economy. Reuters wrote about it.

Erdogan wasn't involved in the talks. The talks discussed different ways to do things.

The economy of Turkey has been struggling lately. The value of its currency has gone down a lot.

Erdogan kept interest rates low. Experts say it overheats the economy. It makes borrowing money cheaper. This is part of the problem.

The informal group won't increase interest rates too quickly. Instead, they want a smooth shift to a policy rate for loans.

Some other ideas are being discussed, but the group against it hasn't shown their plan to Erdogan. This information comes from sources.

Turkey's President wants to rule for a third time. People are worried about the falling currency and higher prices. This is a big deal.

During COVID, Turkey's economy that relied on tourism crashed. However, between 2002 and 2021, the economy had an annual average GDP growth of 5.8%.

By May 2023, the Turkish lira fell to almost 20 against the US dollar from 8 in September 2021.

Last year, a study by Yöneylem Social Research Centre revealed that over 66% of people in Turkey were facing difficulty in paying for food and rent. This has caused an increase in mental health problems and debt.

The presidential election in Turkey needs a run-off because no candidate got more than 50% of the votes. The current president got the most votes though. The run-off is on Sunday.

Kemal Kilicdaroglu, the opposition leader, wanted to change the country's economy with free-market ideas.

Erdogan suggested new economic policies. The goal is to bring in investors from other countries. The move is a response to Turkey's declining foreign reserves.