Henry Kirby in London -
Turkey's economic problems showed no signs of improving as the country’s consumer confidence index hit a record low of 58.5 in September.
The fall comes amid a period in which the lira has suffered dramatically as a result of a surging US dollar and concerns over instability in Turkey, with the Turkish currency losing over 12% of its value against the greenback in only two months.
At a time when Turkey – a net energy importer – should be benefiting from low oil prices, its high dollar debt exposure has cut short any cause for celebration.
As the first bne:Chart shows, the sharpest falls in both the consumer confidence and economic expectations indices came immediately after the parliamentary election in June, which produced a hung parliament..
The current political uncertainty is adding to the pressure on Turkish markets, with a November election looking unlikely to produce the parliamentary majority that might help improve the investor climate. As the second bne:Chart shows, Turkish equities have steadily fallen since the inconclusive June election.
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