The Turkish opposition has launched a one-day economic boycott against President Erdogan, targeting consumer spending to protest against his management of the economy. CHP leader Özgür Özel called on citizens to avoid purchases from government-linked brands. Erdogan’s government has reacted anxiously, viewing the boycott as economic sabotage. With the Turkish economy facing significant challenges, including a depreciating lira and rising inflation, the situation reflects growing discontent and a loss of faith in the currency among citizens and investors alike.
Opposition’s Bold Economic Boycott Against Erdogan
The Turkish opposition is taking a stand against President Recep Tayyip Erdogan by targeting his most vulnerable area: the economy. This Wednesday, they initiated a call for a one-day boycott on consumption. Özgür Özel, the leader of the prominent opposition party CHP, urged citizens through the messaging platform X, stating, “Stop shopping! From supermarkets and online stores to restaurants, gas stations, cafes, and bills – refrain from spending!” A comprehensive list of government-affiliated brands to avoid was also shared.
The Response from Erdogan’s Government
While this move may be largely symbolic, the government’s anxious reaction, labeling it as economic sabotage, indicates that the opposition has struck a nerve. They recognize that economic instability poses a greater threat to Erdogan than mere calls for democratic reforms. For Erdogan to maintain power, he must ensure a basic level of economic prosperity for the populace. Historically, as long as the economy remains somewhat stable, many Turks have been willing to overlook the president’s authoritarian tendencies. However, the economic situation was already deteriorating before the controversy surrounding Istanbul Mayor Ekrem Imamoglu’s arrest. The beginning of the year saw a decline in economic momentum, which has worsened over the past couple of weeks. The Turkish lira has drastically depreciated, leading to increased import costs and exacerbating the inflation crisis.
While Erdogan may envy leaders like Putin, who can govern without significant internal opposition, Turkey lacks the vast natural resources that provide Russia with a steady revenue stream. Instead, Turkey’s economy relies heavily on imports for energy and essential goods, highlighting its vulnerability. To sustain its trade deficit, Turkey requires a robust influx of foreign investment, which is contingent on maintaining investor trust. In recent years, this trust was bolstered by Mehmet Simsek as finance minister and a central bank that effectively tackled the soaring inflation rate, which has decreased from 75 percent in May 2024 to 39 percent currently through strict monetary policies.
However, having a capable finance minister and a credible central bank is insufficient for true economic stability. A reliable institutional framework is essential for businesses, consumers, and markets to plan for the future. Unfortunately, this framework is lacking in Turkey, largely due to Erdogan’s disregard for democratic principles, the rule of law, and judicial independence. He appears more focused on silencing political adversaries than on removing barriers to economic progress.
As a result, Turkey is viewed as a risky market. Political upheaval and reversals remain a constant threat under Erdogan’s regime. Recently, not only have foreign investors pulled out their funds from Turkey, but the local population has also begun to lose faith in the lira, which continues to depreciate during crises. There is a significant risk that citizens will increasingly convert their lira into dollars or euros, further destabilizing the financial system. Such a drastic loss of confidence would have far greater implications than a temporary halt in consumer spending.