Turkey’s Political Turmoil Sparks Economic Concerns Amid Nationwide Protests

Political Crisis Unfolds

Turkey has been gripped by widespread protests since March 19, 2025, following the detention of Istanbul mayor Ekrem İmamoğlu and over 100 opposition members. The arrests have been viewed as politically motivated actions against İmamoğlu, who was considered the main rival to President Erdogan in the upcoming 2028 presidential election.

The demonstrations have spread across Turkey’s major cities, with the largest gatherings in Istanbul, Ankara, and İzmir. University students are playing a significant role in these protests, which have united both right and left-wing individuals under symbols of the Republic, particularly those of Atatürk.

Economic Impact

The political upheaval is threatening to reverse nearly two years of progress in orthodox monetary policy and inflation control. Finance Minister Mehmet Simsek has been forced to implement emergency measures, including spending record levels of foreign currency reserves to support the struggling lira. As one parliament member noted, these reserves, carefully accumulated over the past year, have been depleted rapidly – “saved up by the spoon and thrown away by the shovel.”

Current Economic Outlook

Prior to these events, Turkey’s economy had shown signs of stabilization, with growth moderating from 4.5% in 2023 to 3.2% in 2024, and was expected to maintain stability at 3.1% in 2025. The government’s primary focus had been on price stability, with monetary and fiscal policies aimed at reducing inflation while protecting vulnerable populations. Inflation is projected to reach the upper 20s by the end of 2025.

Government Response

The government has intensified its crackdown on opposition activities. Authorities have imposed travel restrictions in Istanbul to limit protests, closed bridges, restricted internet access, and state media outlets have notably avoided covering the demonstrations.

Future Implications

According to Arda Tunca, an independent economist in Istanbul, the country is approaching a critical juncture. “Turkey is on the verge of becoming a dictatorship,” he warns, suggesting that the public’s response to recent events will be crucial in determining the nation’s future direction.