The results of elections in major EMs over the past month have increased macroeconomic policy risks. Most notably in Turkey, President Erdogan now has the edge ahead of a second-round presidential election run-off next week. Hopes of an opposition victory and a return to orthodox policymaking have all but evaporated and the threat of a severe economic and financial crisis looms large. In India, defeat for the incumbent BJP in an important state election may weigh on the ruling national party’s appetite for economic reforms ahead of next year’s general election. Elsewhere, Thailand’s opposition parties performed well but they may struggle to form a new government under the terms of the 2016 military-crafted constitution. A return to protests and unrest is a real possibility.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services