Adam Samson: Corporate Turkey’s patience in economic reboot wanes

Source:Financial Times Date:01Aug2024

He is so right, Turkish businesses are cry babies. Coddled for years by Erdogan with easy credit, cheap TL and tax forebearance, they are simply awe-struck by the modest damage to financial conditions caused by Simsek’s economic reboot.  But, will Erdogan listen to their voices?  I doubt it.

Adam Samson commented:

Corporate Turkey is finally feeling the pinch of President Recep Tayyip Erdoğan’s radical departure from years of unconventional economic policies. Not everyone is happy with the new normal.
Businesses have broadly backed Şimşek: “We recognise that the slowdown in growth is an integral part of the disinflation process,” said Sönmez. But behind the scenes, there is a growing sense of discontent in some corners of the business community. One former top economic official notes that more than a year into the policy shift, inflation is still far from stable and many companies are stuck in a “wait-and-see mode”, making it difficult to make long-term decisions.

and the clincher

The ex-official said that there was also a feeling in the business community that Şimşek’s messaging had been too heavily focused on wooing international investors, who are now wading back into the Turkish lira and the domestic debt market that they had shunned for years. He added that many businesses had expected conditions to have started easing as soon as this summer and are beginning to run out of patience.

Who believes a belt-tightening program  could achieve success in a single year?