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December 18, 2017

The failed coup attempt against President Erdoğan shook Turkish society and accelerated Erdoğan’s concentration of power. The Turkish economy also suffered a shock, with the lira dropping in value, a flight of foreign investment, and an increase in inflation. The tension between Ankara and the West continues to mount, adding to the country’s economic uncertainty. In anticipation of the 2019 elections, the opposition parties hope the economic issue will adversely affect the Justice and Development Party. However, Turkey's domestic consumption and growing exports have produced a challenging but stable economic picture that should benefit Erdoğan.

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