Economic policies are eroding Turkey's purchasing power and leaving many needing help to afford even basic foodstuffs, including basic foodstuff. With the current conditions, Erdogan and the coalition are made up mainly of lower income thanks to strong economic growth.

Since the general elections, annual inflation has shown double digits for nearly all five years. It started to surge after the currency crisis that occurred in late 2021. And because of this, it was also sparked by a series of cute interest rates due to unorthodox policies.

Meanwhile, one economist and a political expert said that Erdogan's supporters now cannot avoid it if their economy is not doing well. He also stated: "The reason why this party kept winning is because it delivered certain material benefits to voters,"

"This is the first time that magic doesn't seem to be working because of the economy, especially because of high inflation and the cost of living, which has also increased," said Birol Baskan.

Election Shows Rise and Fall of Erdogan's Economy and Turkish Central Bank Sticks to Inflation Forecast

Predictions regarding the Turkish economy have been discussed a lot after the topic of President Tayyip Erdogan in elections this month affected the economic reversal. Especially in the sector of prosperity, equality, and ability after his two-decade reign.

May 14 will be the moment and the biggest test for Erdogan. Erdogan's support has slipped in recent years, and this was affected by currency crashes and a deepening cost of living crisis, so the policy adopted by Erdogan has an influence on soaring inflation.

Meanwhile, the measure also led to an unprecedented nationwide protest the government. At the same time, a global reversal in market liquidity also left Turkey, and several markets starved for funding.

The Turkish government said that its rate cuts would boost exports and investments. This is a program created to encourage Lira holdings. This stimulus will also have a good effect after the unemployment rate has dropped to 10% from nearly 14% in the last two years.

Meanwhile, Turkey's central bank continues to stick to its inflation forecast of 22.3 percent by 2023. The decline in inflation has been slower so far than previous predictions. The view of economists on this condition is that market expectations will affect the central bank's outlook.

"We project that credit conditions are quite compatible with the disinflation process. This will also affect stable exchange rates within our current policy framework. And this will ensure a greater improvement in the underlying inflation trend," said Governor Sahap Kavcioglu.

Meanwhile, the cost-of-living crisis has eaten away at household savings in Turkey. This is a hit to Erdogan's popularity by placing him under a significant challenge for elections shortly. But the central bank said that the policies are not temporary and will continue.

Turkey's Economy Will Crash Regardless of Who Wins the Election, and the Central Bank won't Raise Rates.

With Turkey's current economic condition, there are not many ways that could be of assistance to improve its condition. Economists confidently say that Turkey's economy will still crash regardless of who wins the election in May.

Turkey's central bank will also not raise interest rates above or near the current headline inflation. Upcoming critical elections have been saying there is a course of its economic policies.

And many are favoring a lower interest rate after the election, but the central bank says this won't happen. And because of this, the movement of the US economy will be continued by looking at the election results and the central bank's policies afterward.

Concern for the Turkish economy is now leading to a measure of the election. After the election, some said interest rates would change, but the central bank refused. This also causes the Turkish economy to crash regardless of the election's winner.