The Turkish government is continuing its strategy of seducing investors. On a visit to New York for the United Nations General Assembly, Recep Tayyip Erdogan, flanked by senior economic officials, met on Monday with around twenty executives from the hundred largest American companies, according to the Turkey-United States Business Council (TAIK), quoted by the “Financial Times”. This round table took place in the Turkish House, a tower inaugurated in 2021 which houses the country’s diplomatic missions and aims to be a showcase of Turkish “soft power”.
The meeting is followed by at least three other meetings between now and Wednesday with the business community, led by investment banks Goldman Sachs and JPMorgan. Led by the Turkish Foreign Economic Relations Board (DEIK), the talks are aimed at attracting foreign investment to Turkey.
A 180 degree turn
On Tuesday, Goldman Sachs will host Finance Minister Mehmet Simsek and Central Bank Director Fatih Karahan at its headquarters for a presentation on investment opportunities in the country. Energy Minister Alparslan Bayraktar and Industry Minister Mehmet Fatih Kacir will also hold talks with investors.
Erdogan will meet with one of Apple’s vice presidents, Nick Ammann, the conservative Turkish daily Türkiye reported. “Foreign investors – especially those looking to invest in Turkish stocks and bonds or acquire companies – are asking for assurances from the authorities that current economic policies will be maintained,” former Turkish Central Bank deputy governor Ibrahim Turhan told the Turkish-language version of Voice of America.
After pursuing an unorthodox economic policy for several years, pressuring the central bank to lower interest rates despite high inflation, Erdogan made a 180-degree turn following his re-election in May 2023. He has since initiated a new economic policy, chaired by Finance Minister Mehmet Simsek – a former economist at the investment bank Merrill Lynch – based on more restrictive monetary and fiscal policies.
At the same time, Mehmet Simsek has increased his trips abroad to try to restore the confidence of investors, who had fled in the face of President Erdogan’s outlandish economic policies. These efforts seem to be paying off, as the country has seen an influx of investment over the year, particularly in the Turkish lira debt market. Rating agencies such as Standard & Poor’s, Moody’s and Fitch have also upgraded their ratings of Turkey in recent months.
