11/2/2015

End of political uncertainty good news for foreign investors in Turkey, experts say

AA - The election victory of the Justice and Development (AK) Party, which will be able to form a majority government, is good news for foreign investors, experts told the Anadolu Agency on Monday.

 "The end of political uncertainty in Turkey is good news for foreign investors," Christopher Dembik, an economist with Saxo Banque in Paris, said in an interview late Sunday night. "We can now expect ongoing coherence in financial policy and hopefully more rapid action on structural reforms."

 Turkish Finance Minister Mehmet Şimşek told the press on Sunday that political uncertainty had ended with the election result. "This is a great opportunity for us to carry out reforms," he said.

 According to preliminary results based on 100 percent of votes counted, AK Party secured 49.5 percent votes -- a higher proportion than any of the predictions by opinion polls -- winning 317 seats at the 550-seat Grand National Assembly.

 "Investors had priced in concerns about a continuing period of instability, expecting no single party to be able to govern after this election," explained Neil Shearing, chief Emerging Markets economist with Capital Economics, in an interview on Sunday night.

 "With a stable government installed, the government can take action to reduce the current account deficit and to stimulate job creation. Investors can now expect the government to take steps to increase economic growth," Shearing said.

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