Turkey: economic problems and international ambitions

Abstract

Turkey is suffering from a significant economic downturn that began in late 2021, when the Central Bank cut interest rates and inflation accelerated. There is not a clear path out of the crisis for the government of President Recep Tayyip Erdoğan, who is preparing to run for re-election in 2023 in the Republic of Turkey’s centenary year. Internationally, Erdoğan is making conciliatory moves towards several countries with which Turkey has had disputes in recent years while also pursuing a middle path with regard to Russia’s invasion of Ukraine, meaning that Ankara has been able to preserve important trade and economic exchanges with Moscow while serving as a mediator between Kyiv and Moscow during the crisis.