EM Drop-In: Is Turkey’s policy shift the real deal?

The Erdogan government’s turn back to macroeconomic orthodoxy is showing early positive signs: inflation pressures have eased; the current account deficit has narrowed; and foreign investment has picked up.

But is this the latest in a string of false dawns for Turkish policymaking that investors have gone through over the past decade? Should investors brace for another U-turn or is this time for real? And what more do policymakers need to deliver to keep markets onside?

In this special online briefing, economists from our EM and Markets teams assessed the progress of Turkey’s latest effort to address its underlying imbalances and whether the government will stick to its current path. The team answered questions from the audience about the Turkish policy outlook as they addressed key issues, including:

• Just how sustainable this current policy shift is;
• What more needs to be done to sustain investor confidence;
• The outlook for Turkey’s financial markets.