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Foreign Investors React Positively to Majority Government

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Real Estate Market in Turkey
Nova Property

Experts assessed Justice and Development Party returning to power on its own as being good news for foreign investors.

Good News for Investors

Christopher Dembik
Christopher Dembik

Christopher Dembik, an economist at Saxo Bank, underlined that the end of the political uncertainty was good news for foreign investors. Dembik said, “We are now expecting the financial discipline to continue and for faster action in respect of structural reforms.”

Neil Shearing, a senior economist for the developing markets at Capital Economics made a reminder that they had not expected a majority government in the elections on November 1; therefore, they had acted with the expectation that the political uncertainty was going to continue. Shearing said, “With the formation of a stable government, the government may take action to reduce the current balance deficit and encourage employment. Investors can now expect the government to take steps to increase the economic growth. In fact, the government has obtained a good position to maintain its control in expenditures and the balance sheets. This is a critical transition for Turkey.”

Institutionalization is the guarantee of foreign investors

Real Estate Sector in Turkey Growing Stronger
Real Estate Sector in Turkey Growing Stronger

Bora Tamer Yılmaz, an investment economist at Ziraat Bank, stated that the interest of foreign investors in Turkish Lira assets would increase following the election. Yılmaz said, “It is not difficult to foresee this short term profit, but what is important is being able to see what is going to happen in the long term. That will be determined by institutionalization. We do not believe Turkey will compromise on its own institutionalization. Therefore, we are maintaining our positive view for the Turkish economy. The institutionalization will also be the guarantee of foreign investors.”

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