Erdogan’s Win Puts Focus on New Cabinet, Policies: Reaction Wrap

With President Recep Tayyip Erdogan sealing a comfortable reelection victory on Sunday, investors’ focus now shifts to appointment of a new cabinet that could signal revisions to an economic policy mix many view as unsustainable.

In power already for 20 years, Erdogan won another five-year term with more than 52% support against opposition challenger Kemal Kilicdaroglu, who had promised a return to more orthodox and market-friendly policies. While some see Erdogan’s unconventional approach — based on ultra-low interest rates and heavy state intervention in markets — continuing as long as possible, it’s become increasingly difficult to maintain as pressure builds across Turkish asset classes.