Confidence in the economy is beginning to reflect in indicators

Abdulkadir Selvi

After President Erdoğan won the election with a clear lead, world leaders, including US President Biden, French President Macron, and Russian President Putin, queued up to congratulate him.

The presidential ceremony was different from previous ones. It was a ceremony for a world leader.

The world is preparing itself for five more years according to Erdoğan.

A strong economic management gains significance when there is a strong political will behind it. The current situation we are experiencing reflects this.

A NEW ERA

A new era is beginning, and one of the most important indicators of this new era will be the economy. Trust is essential for the economy, and the assumption of economic management by Mehmet Şimşek has been highly welcomed by the markets. The messages delivered by Mehmet Şimşek regarding the return to rational economics while taking over the role are significant for the predictability of the new era.

MONEY INFLOW HAS STARTED

The international markets have interpreted the message correctly. They have extended significant credit to Şimşek. Within just 24 hours starting from Monday, there has been an inflow of 100 million dollars from abroad. With the implementation of new policies related to the economy, it is expected that this trend will continue to rise.

CDS RATES ARE DECLINING

Another indicator is the improvement in Turkey’s credit default swap (CDS) indicators. Prior to the election, CDS rates had reached as high as 700, but as of June 5th, following the announcement of the cabinet, they have fallen to 493.3.

The first step in the economy has been taken correctly. The crucial element of trust, which is the remedy for the economy, has been established.

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