Economics
Turkey Overheating Means Race Against Time for Erdogan
- Pro-growth policies are aggravating imbalances, investors say
- Speculation is growing that Erdogan may seek early elections
Photographer: Kerem Uzel/Bloomberg
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The Turkish economy is overheating. That could be a problem for President Recep Tayyip Erdogan as much as it is for the nation’s creditors.
The lira is buckling under the weight of a ballooning current-account deficit and double-digit inflation after its $851-billion gross domestic product expanded 7.4 percent last year, faster than any other major economy. Erdogan, who’s seeking to formalize effective one-man rule at an election next year, needs to make sure any turbulence doesn’t thwart his chances. But signs of trouble are growing.