Foreign Economists’ Take on March 31 Local Election Results: Impact on Economic Policies

The results of the 2024 Local Elections, in which Turkiye determined the mayors who will serve in local governments for five years, were also carefully followed by the economic world. So, do foreign economists expect a change in the current economic program?

The results of the March 31 Local Elections in Turkiye have become clear. According to unofficial results, CHP received more than 17 million votes in total, reaching a vote rate of 37.68%. AK Party received approximately 16 million 183 thousand votes and reached a vote rate of 35.54%.

According to Bloomberg’s news; Foreign economists do not expect changes in the current economic program. President Recep Tayyip Erdogan’s balcony speech yesterday was seen as a signal for the continuation of the current economic program.

Wolfango Piccoli, co-chairman of the consultancy company Teneo, evaluated that the election results do not seem likely to put a distance between Erdogan and the economic management led by Treasury and Finance Minister Mehmet Simsek.


Stating that no significant change is expected in economic policy, Piccoli said, “The main risk of Simsek’s policy program, who thinks that public budget discipline and high interest rates are required to control inflation, is that Erdogan will have difficulty in not increasing minimum wages and pensions in the second half of 2024.”

Bank of Singapore Currency Strategist Moh Siong Sim commented, “Markets will want to see whether President Erdogan will remain on the path to return to orthodox monetary policies after the local elections.”

Stating that the 500 basis point interest rate increase carried out by the Central Bank before the election was encouraging, Sim said, “We will have to see whether it will continue if there is a need for the currency to further stabilize.”

Source: Patronlardunyasi / Prepared by Irem Yildiz

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