Elections and the Economy

After the 7 June parliamentary elections, Turkey faces a tough economic reform agenda. Turkey was already reaching the limits of a growth path based on structural change, and the deterioration of the institutional environment have made growth prospects even weaker. For high growth to resume, it will be necessary to improve both the rule of law and the quality of economic institutions more generally, and undertake important structural reforms. However, at the moment there are enormous political uncertainties. It is yet not clear whether it will be possible to form a coalition government. If one is formed, will it be able to address the structural reforms that are necessary to put Turkey on a high-growth path?

Paper produced within the framework of the project Turkey, Europe and the World [5].