Turkish Stock Market Falls 10.5% as Demonstrations Escalate

Following several days of intense protests in Turkey, the country’s largest stock index, fell 10.47 percent and the lira dropped to a 16-month low. The protests were originally sparked by plans to transform an Istanbul park into a shopping center, but have since expanded into concerns over government policies with a religious bent. Foreign investment in the country had received a needed boost with the upgrading of Turkish debt by Moody’s, reports BBC Chief Economics Correspondent Hugh Pym, and the OECD had predicted that the Turkish economy would expand by 3.1 percent this year and 4.6 percent in 2014. Turkey is a key export market for flailing Europe, and the risk of ongoing unrest or a brutal crackdown may give investors pause. After the Arab Spring protests, Turkey was touted as a model of democracy and moderation for countries throughout the Middle East, and investors are closely monitoring reports on government handling of the protests. – YaleGlobal