Turkey: Does Political Risk Matter?

Political risk is a perennial concern for foreign investors in Turkey, and a frequent cause of volatility on the Istanbul markets. Yet despite threats of military coups, an on-again off-again EU accession process, deep social tensions between secularist and moderate Islamist institutions, and a protracted ethnic Kurdish insurgency, the Turkish economy and financial markets have outperformed over the past 8 years. On this week’s podcast, Yoel Sano (Head of Political Risk Analysis) and Justin Patrie (Head of Europe Analysis) discuss the political risk outlook for Turkey, assessing the interplay between politics, the markets and the long-term macroeconomic outlook.

 
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