--- title: "Why Turkey is making changes in economic policies made by President Erdogan?" description: "Why Turkey is making changes in economic policies made by President Erdogan?" author: "Radheshyam Prasad Tiwari" published: 2023-06-21 updated: 2023-06-22 canonical: https://answers.mindstick.com/qa/100080/why-turkey-is-making-changes-in-economic-policies-made-by-president-erdogan category: "international society, international groups, international countries" tags: ["international countries"] reading_time: 2 minutes --- # Why Turkey is making changes in economic policies made by President Erdogan? ## Answers ### Answer by Mark John Turkey is making changes in [economic policies](https://yourviews.mindstick.com/view/84490/what-will-be-the-economy-of-india-in-2030) made by President Erdogan due to a number of factors, including: - The Turkish lira has plunged in value against the dollar, making imports more expensive and exports less competitive. - Inflation has risen to over 70%, eroding the [purchasing power](https://answers.mindstick.com/qa/103091/how-does-inflation-affect-purchasing-power) of [Turkish citizens.](https://answers.mindstick.com/qa/99077/how-many-deaths-occurred-in-turkey-s-earthquake) - Borrowing costs have risen, making it more difficult for [businesses to invest](https://answers.mindstick.com/qa/41769/in-which-part-of-the-world-did-president-taft-urge-american-banks-and-businesses-to-invest) and grow. - The country's current account deficit has widened, meaning that Turkey is importing more [goods and services](https://answers.mindstick.com/qa/101686/can-you-explain-the-goods-and-services-tax-gst-in-india) than it is exporting. These [economic problems](https://answers.mindstick.com/qa/41956/following-world-war-ll-how-did-the-united-state-manage-to-avoid-the-severe-economic-problems-that-some-people-had-expected) have led to a loss of confidence in the Turkish economy, both domestically and internationally. In order to address these problems, the Turkish government is making changes to its economic policies. These changes include: - Raising interest rates in an effort to [control inflation](https://answers.mindstick.com/qa/104451/how-does-the-government-control-inflation). - Reducing [government spending](https://answers.mindstick.com/qa/34968/how-much-has-federal-government-spending-grown) in order to narrow the current account deficit. - Liberalizing the foreign exchange market in order to make the Turkish lira more stable. - Increasing transparency in the [financial sector](https://www.mindstick.com/blog/33261/5-great-jobs-to-consider-within-the-financial-sector) in order to attract foreign investment. It is too early to say whether these changes will be successful in reversing the Turkish economic crisis. However, the government is under pressure to take action, and these changes represent a significant departure from the economic [policies of President](https://answers.mindstick.com/qa/43201/how-did-the-launch-of-sputnik-affect-the-policies-of-president-eisenhower) Erdogan. In addition to the economic factors mentioned above, there are also political considerations that are driving the changes in Turkey's economic policies. The Turkish opposition has been critical of President Erdogan's economic policies, and the government is likely hoping that the changes will help to improve its popularity ahead of the next elections. The changes in Turkey's economic policies are a significant development, and it will be interesting to see how they play out in the coming months and years. --- Original Source: https://answers.mindstick.com/qa/100080/why-turkey-is-making-changes-in-economic-policies-made-by-president-erdogan Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.