Economic dissatisfaction will persist in Turkey

Significance The main opposition Republican People’s Party (CHP), which has benefited from economic discontent, has called for higher wages and pensions. In contrast, the government is now seeking to curb domestic demand, and thereby defeat inflation, through tighter monetary and fiscal policies, including limiting pay and pension hikes. Impacts While the opposition focuses on the economy, Erdogan will tout nationalism and seek to defame the CHP as pro-Kurdish and anti-religious. Protest and dissent will be suppressed as far as possible, but the CHP may continue to hold demonstrations. Symbolic steps may be taken to please the public, such as raising taxes on wealth or making changes at TurkStat. The president is likely to revert to expansionary policies well ahead of the next presidential and parliamentary elections.