Hamit: Political Uncertainty in Turkey Negatively Affects the Economy

Hamit pointed out that there have been serious doubts about democracy in Turkey for a long time, and this situation has raised concerns not only in Turkey but globally. "We live in a world where the foundations of democracy are shaking, and security concerns are growing," he said. He also noted that President Erdoğan is trying to turn this situation to his advantage and reminded that after the removal of HDP mayors, CHP mayors in Istanbul were also removed in a similar manner.

He stressed that political uncertainties have had a negative impact on the economy and that no one can guarantee whether a future election in Turkey will be conducted democratically.

While the public has not shown strong reactions so far, Hamit noted that an unexpected resistance movement started after the removal of Istanbul Mayor Ekrem İmamoğlu, and this movement spread across Turkey. "This has become a movement where people in cities like Trabzon, Rize, and Konya—places where Erdoğan is strong—also defended their right to vote," he added.

After İmamoğlu's detention, Hamit mentioned that the CHP decided to hold an extraordinary congress, marking the emergence of a political environment that those in favor of democracy could not accept. He emphasized that Turkey is governed by the Republic, and the foundational principles of the Republic are being undermined.

Regarding economic expectations, Hamit noted that Turkey's economic program has been focusing on fixing exchange rates, but due to a slowdown in capital flows, the Central Bank’s reserves have diminished. "A third of the accumulated cash reserves have been depleted," he pointed out, warning that this situation would have negative consequences for society.

As the Euro rose from 39.50 to 41 in the last month, Hamit said, "Inflation will return within the next 1-2 months, and this will be more pronounced for the TRNC as well," indicating that economic uncertainty is likely to increase.