Turkish inflation and economy top concerns in Erdogan's new tenure

Daily problems faced by Turkey's people are President's biggest challenges

Turkey's President Recep Tayyip Erdogan and his wife Emine casts their ballots in Istanbul in the run-off election on Sunday. AFP

Main opposition alliance presidential candidate Kemal Kilicdaroglu and his wife Selvi arrive to vote at a polling station in Ankara. Getty

A woman checks a voting list at a polling station as people wait to vote in Istanbul. AP

Voters in Turkey returned to the polls on Sunday to decide between Mr Erdogan and Mr Kilicdaroglu. AP

A woman casts her ballot at a polling station in Ankara. EPA

A first election was held on May 14, when none of the candidates exceeded the 50 per cent mark. EPA

People leave a polling station in Ankara. Reuters

A woman casts her ballot in Adana. AFP

A woman casts her ballot at a polling station in Ankara. Reuters

An election representative checks a stamp at a polling station in Istanbul. AP

A woman votes in Istanbul. AFP

A woman holds a ballot in Istanbul. Reuters

A man arrives to vote in Ankara. Getty

A ballot slip featuring Mr Erdogan and Mr Kilicdaroglu is seen at a polling station in Ankara. Getty Images

A voter in Istanbul. Reuters

A voter casts her ballot at a polling station in Ankara. AFP

President Recep Tayyip Erdogan may have extended his period at the helm of Turkish politics into a third decade but the country is arguably facing its most difficult period yet.

Mr Erdogan faces criticism from his detractors for increased repression, consolidation of power and poor economic policy.

And it is the latter, Turkey's dire financial situation, that often comes up as one of the key problems that Turkish people face on a daily basis.

“I'm feeling terrible about the future because the economy and living conditions are harsh,” said Orhan Baskin, 60.

“I am 18 years old, I can’t buy a phone. How can I be happy with this system?” said Layla Karan in Istanbul, after Mr Erdogan won the election on Sunday night.

Inflation is rampant, while the Turkish lira has plummeted in value against the US dollar. The lira has weakened to 20.077 to the dollar, breaking through the previous record low touched last Friday.

“I congratulate him, I hope this will bring peace to all people of Turkey,” said 69-year-old Sharban Direk, while drinking tea at a cafe on Monday morning

“He needs to be focused on peace, security and the economy. He has to take more steps to lift the weight off peoples' shoulders.”

Mr Direk said it was vital that Turkey's large – and expanding – young population is supported.

"There are lots of young people that can’t find a job. The government has to take the necessary steps to support them and give them a future.”

Sharban Direk,
Erdogan supporter

“There are lots of young people that can’t find a job. The government has to take the necessary steps to support them and give them a future.”

The lira has lost more than half of its value in two years and traded at the record low despite major state interventions aimed at averting politically-sensitive declines before the final vote.

Official data showed the central bank burnt through $25 billion in a month while trying to prop up the currency.

The President acknowledged in his victory speech that inflation was his most pressing issue, while insisting it would fall. “We are designing an economy focused on investment and employment, with a finance management team which has an international reputation,” he said.

The poor economic situation has been blamed by some on Mr Erdogan's unorthodox economic policies. For years, the President has insisted on keeping interest rates low in what he says is an attempt to bring inflation down, despite evidence to the contrary.

During the presidential campaign, opposition figures frequently cited increased authoritarianism, corruption and lack of equality as reasons not to vote for Mr Erdogan.

“I’m unhappy. I hope the President will treat all citizens equally. In reality he won’t treat us as equals,” said Mr Baskin.

Turkish national flag bunting hangs above a street in Izmir, Turkey, on Friday. Bloomberg

Mr Erdogan's supporters believe he can drag Turkey out of its economic woes, something his detractors ridicule.

“I don’t think they can fix the economy, they were the ones who brought it down. They couldn't make the economy work in 20 years, how can you be hopeful that it will happen in the next five years?” said Nilgun, 65.

“I am feeling terrible. I am a republican secular women and I woke up to a nightmare. My only expectations from the ruling party is to treat all Turkish people as equals.”

Mr Erdogan is dealing with a delicate situation in Syria both with the government of Damascus and approximately 3.4 million Syrian refugees living in Turkey.

Turkey backed the Syrian rebels with arms in the 12-year civil war against the Syrian government. Mr Erdogan has slowly sought to mend ties with President Bashar Al Assad's administration but progress has been slow.

Turkey wants Syrians to return home, but Mr Erdogan and his main opponent, Kemal Kilicdaroglu, the leader of the Republican People's Party (CHP), pitched different ways to solve the situation.

In what was seen as a bid to court voters from the far right, Mr Kilicdaroglu pledged to expel Syrians from Turkey. Mr Erdogan advocated a softer approach, proposing voluntary returns to Turkish-built housing units in northern Syria.