Inflation, Political Tension, and Leadership: Understanding Türkiye’s Current Economic and Political Landscape

jessevisionfactory
Aug 18
3 min read

Author: İsa Korkmaz

Türkiye faces various challenges today. These are the results of the current and past doings of the government. Especially economic challenges today are a huge burden on the people. Nowadays, almost everyone is complaining about the economy and its effect on them. So, today, lots of people are complaining about the government and its doings in the country.

Graph with an orange upward arrow and "INFLATION" text. Stick figure with a worried expression holds a shopping basket.

Current Inflation Trends in Türkiye

Today, inflation is really high level in Türkiye. Especially since 2020, the cost of living has been highly increasing. Türkiye has the highest level of market inflation compared to other countries around itself. Despite as the government says the inflation rate is now 33.52% (1) in July, the people of Türkiye think different as their money loses its worth as the time passes.

Especially in things like food, housing (rents, house prices and more) and energy consumption, the prices are taking everything in their hands. Minimum wage in Türkiye is 22.104,67 Turkish liras and, in some places, especially in Istanbul, rents are higher than the minimum wage. So, in a family, one person’s work is not enough, and at least 3-4 people have to work at the same time.

Impact on Citizens and Businesses

The impacts of inflation on people and businesses are extremely harsh. As their purchasing power shrinks and their job security erodes, many Turks are falling out of the middle class, says The Economist (2) There is now only lower-class and high-class people, and some certain amount of people holds the most of the wealth.

BDDK data reveals a striking concentration of wealth: 78% of total bank deposits in Türkiye are owned by just 2.1 million people. These individuals collectively hold 15.3 trillion TL in their accounts. (3)

Crossword puzzle with words: Politics, Corruption, Taxes, Society, Power, World, Government on a blue gradient background.

Political Tension and Public Response

More than 61 percent of Turks think the country’s economic situation will deteriorate further in the next six months, while nearly 58 percent want elections to be held earlier, the T24 news website reported, citing the results of a recent survey. (4)

People want change and want it soon. Because as the time passes and these politics continue, the condition of the country gets worse and people getting poorer. In the end, almost all of the people are dissatisfied with the conditions.

Role of the Current President

Despite all these situations, the current president Recep Tayyip Erdogan, still insists on the current policies, and saying that the economy is going good and the country’s economy getting progressed more. But people do not think like that, and still do not believe these announcements. Because in the end, they see that their condition getting worse.

In a survey conducted between August 17 – 27, 2024 with 2000 people mostly above 18 were asked questions. “What do you think is Türkiye’s most important problem?” Over 50% responders cited the economy, inflation and cost of living. This followed 10.8% cited “Justice” and 5.2% cited “Refugees” as the second and third the most important problems. (5)

Potential Economic and Political Outcomes

A survey by ORC Research shows the main opposition Republican People’s Party (CHP) leading in six of seven Turkish cities, including İstanbul and Ankara, amid speculation on an early general election. The ruling Justice and Development Party (AKP) retains a lead only in Malatya with declines across all cities since 2023. (6)

Economic problems and political tensions are causing harms against the government. Especially since the last arrests against the main opposition caused more and changed the people’s minds of the government.

The word "COSTS" in gold letters is placed on a red upward arrow, symbolizing rising expenses. The background is white.

In Conclusion

As the economic problems occur, the stability of a government gets worse. People of the country get dissatisfied with the government and wish for a change. If the economy gets better for a country, the political developments have also come with it. Mistakes in politics can cause serious damage to the country.

People are the fundamental of a country, as they are the builders. If the problems occur, then the results can be harmful for everyone. We people need to use our minds and give mindful choices in our lives. With this, we can live better.