Despite political uncertainty with the coming elections and setbacks in negotiations with the European Union, Turkey’s economic fundamentals remain strong. While there have been short-term wobbles due to recent events, and long-term issues such as inflation, the current account deficit (CAD) and poverty remain, the IMF and the market expect growth to continue, most likely under the current ruling party with a renewed mandate after July’s elections. At the end of April, the Turkish stock market and the lira were hit by a statement by the military voicing support for secularism, which was seen as an attack on the ruling Justice and Development Party (AKP) government, with its roots in political Islam. The markets were also influenced by large demonstrations against AKP in Istanbul, Ankara and Izmir. The demonstrations came in the wake of Prime Minster Recep Tayyip Erdogan’s decision to name Foreign Minister Abdullah Gül as candidate for president,
