Turkish economy weaker - Erdogan's new course? Financial expert analyzes the current situation and possible consequences.

Turkish economy weaker - Erdogan's new course? Financial expert analyzes the current situation and possible consequences.

According to a report by amp2.handelsblatt.com, the Turkish economy is showing signs of slowing, despite the tighter economic policies President Erdogan promised after his re-election. According to the Turkish statistics institute Tüik, gross domestic product grew by 3.8 percent between March and June, which was below expectations. The new economic team's efforts to curb inflation from nearly 50 percent could threaten growth. Early indicators suggest that the industrial and export sectors are weakening, while tourism is suffering due to high inflation. Major US bank Goldman Sachs predicts that the Turkish economy could potentially enter a recession in the second half of the year. Higher interest rates and high inflation are making companies reluctant to take out expensive loans, hurting investment and employment. Tightening monetary policy could also further limit domestic demand. Erdogan's decision whether to save the economy or pursue political victories could have implications for the country's credibility in the eyes of investors.

It is impossible to predict how the efforts to tighten economic policy will have a long-term impact on the Turkish economy. The question of a possible recession and uncertainty about the Turkish government's next steps could lead to increased market volatility and uncertainty in the financial sector. Should the economy actually slow down or enter a recession, this could also have an impact on international markets, especially given the interconnectedness of the Turkish economy with other countries. Financial experts are therefore closely monitoring the situation in Turkey in order to assess potential effects on the global financial market.