Turkish government spending rose at the highest pace since 2011 during the three months leading up to municipal elections in March when embattled Prime Minister Recep Tayyip Erdogan secured a morale-boosting victory.
One year after protests erupted in Istanbul’s Gezi Park, challenging Turkish Prime Minister Recep Tayyip Erdogan’s authority, the bond market is signaling support for the status quo as his party consolidates power.
From the window of his construction trailer, Murat Sarayli has a prime vantage point on the promise and perils of the Turkish economy. Outside, sparks cascade from welding torches as workers labor to complete the steel skeleton of a $350 million hotel and conference center. Jets pass overhead, approaching and leaving Istanbul Ataturk Airport, less than a mile away.
The lira surged the most among emerging markets and Turkish stocks rallied as investors wagered victory for Prime Minister Recep Tayyip Erdogan’s party in local elections may arrest foreign capital outflows.