Overview of the Coup Attempt
The attempted coup on July 15, 2016 by FETÖ caused significant economic damage in Turkey.
The coup left behind grieving families, psychological trauma, and disrupted public order, leading to severe economic repercussions.
Experts noted that FETÖ inflicted heavy blows on Turkey's economy not only through the coup but also via the operations on December 17-25, 2013.
Economic Costs
The total estimated economic cost of the coup exceeded $400 billion, including direct and indirect losses.
Numan Kurtulmuş, a former AK Parti leader, emphasized the coup's impact on exchange rates and interest rates.
Those costs resulted in a significant decline in foreign investments, with direct foreign investments plunging from $19.3 billion in 2015 to $7.7 billion in 2020.
Impact on Economic Indicators
Following the coup attempt, the BIST 100 index plunged by 7.08% on the first trading day.
Dollar/TL rate jumped from 2.87 to 3.02 amidst the news of the coup.
Despite a 0.8% contraction in the third quarter of 2016, Turkey's economy showed signs of recovery in the fourth quarter.
Decline in Foreign Capital and Income
Post-coup foreign direct investment saw a substantial decrease, affecting per capita income which fell from $12,582 in 2013 to $8,600 in 2020.
Per capita cost due to the coup was reported to exceed $2,000.
By 2023, per capita income rose to $13,243, but was still below the expected level of $19,600.
Long-term Effects on the Economy
Credit rating downgrades post-coup and Turkey's placement on the gray list have damaged its international economic image.
The government budget deficit as a percentage of GDP increased from 1% in 2015 to 3.2% in 2020.
Economic experts indicated that the coup process led to degeneration not only in economic indicators but also in institutions and personnel.
Install Browsy