Turkey’s economy could shrink 10%-20%
In what is being compared to Greece’s economic crisis, Turkey has taken measures to stop the rapid decline of its currency. These, measures, however, have not succeeded in propping up other struggling areas of the economy, most notably its equity markets and the credit quality of its banks. Turkey’s top stock index has dropped 35% (in terms of USD) since last August and some of its largest banks and business are struggling to stay above water. Only two years after a failed coup to topple President Erdogan after which some 47,000 people were arrested, an economic crisis could trigger another political crisis with unknown effects on Turkey itself, Europe, the Middle East, and the globe.