Financial Times analysis on Erdoğan: 'Shaken by economic crisis and pressure from İmamoğlu'
The Financial Times reported that economic difficulties and political tensions in Turkey are threatening Erdoğan's rule. The newspaper stated that the arrest of İmamoğlu has triggered reactions that spilled into the streets, and that rumors of the potential dismissal of Şimşek and Karahan have shaken the markets.
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The UK-based respected economic newspaper Financial Times has examined the recent increase in political pressure and deepening economic problems in Turkey. In the analysis published under the headline "How Turkey's struggling economy is hurting Erdoğan," it was emphasized that President Recep Tayyip Erdoğan is going through a fragile period in both his economic management and political strategy.
İmamoğlu's arrest shook the markets
The report drew attention to the social reactions that occurred following the arrest of Istanbul Metropolitan Municipality Mayor Ekrem İmamoğlu on March 19 on "corruption charges." The Financial Times assessed, "The arrest of Erdoğan's biggest political rival triggered mass street protests and financial panic. The Central Bank was forced to stabilize the exchange rate through interest rate hikes and reserve sales."
Foreign investors took a step back
The article stated that the vulnerabilities in the Turkish economy have also worried international investors. Underlining the lack of confidence in the markets, it noted, "Foreign companies have suspended their investment plans. Portfolio investors have exited the Turkish market."
Public support is melting, the risk of losing an election is growing
Pointing to the current election calendar, the Financial Times assessed, "If elections were held tomorrow, it appears Erdoğan would lose to İmamoğlu by a wide margin." The newspaper emphasized that the economic collapse has significantly weakened Erdoğan's public support.
Claims regarding Şimşek and Karahan
The report also included claims that the economic trajectory could lead Erdoğan to make changes in his economic management. While rumors that "Mehmet Şimşek and Fatih Karahan could be dismissed" are spreading in the market, experts agree that such a move could be devastating for Turkish markets.
Economists warn: Turkish markets could collapse
The analysis also warned that a possible policy change could cause a sudden collapse in the Turkish economy. With the warning, "If the current reform program is abandoned, the markets will collapse completely," the Financial Times predicted that Turkey could face serious economic turbulence in the coming period.