National instability threatens Turkey’s economy

Global Business

National instability threatens Turkey's economy TN3

Regional conflicts and the recent terrorist attack have already taken a toll on Turkey’s economy. Turkish Prime Minister Ahmet Davutoglu is on tour in Europe, hoping to boost investor confidence.

CCTV’s Michal Bardavid reports from Istanbul.

National instability threatens Turkey's economy

National instability threatens Turkey's economy

Regional conflicts and the recent terrorist attack have already taken a toll on Turkey's economy. Turkish Prime Minister Ahmet Davutoglu is on tour in Europe, hoping to boost investor confidence.

In 2015, Turkey saw a capital outflow of 10 billion U.S. dollars, which was no doubt a hit to the already struggling economy. All this as the Turkish Lira plunged about 23 percent last year.

Regional conflicts have had major effects, and the refugee crisis is also taking a toll as Turkey continues to host over 2 million Syrian refugees.

Security issues within Turkey’s borders may be one of the most critical factors in this whole situation.

The Turkish government also recently announced a research and development incentive plan as part of a reform package hoping to increase investment in Research and Development within Turkish borders.