Turkey 'could benefit from Trump's economic and strategic policies'

U.S. President-elect Donald Trump's economic and political strategies are likely to have a "mixed effect on Turkey" and it will be up to the Turkish administration to turn them into advantages, economist Fatih Keresteci has told the Hürriyet Daily News. 

Washington's likely protectionist policies regarding China could have adverse consequences for the Turkish economy, but Ankara could benefit from Trump's objection to a major trade deal with the European Union, which could recover Turkey's importance, said Keresteci. 

"A secular Turkey could play an important role in the region within the framework of U.S.-Russian cooperation in the fight against radicalism," he also added. 

What are your projections in terms of the Trump administration's economic policies?

Trump's economic policies are based on tax cuts, a spending boom, protectionism and deregulation of the financial system. This set up could bring growth to the United States and with it inflation. Together with deregulation, one might expect a lending boom in the banking sector. The initial reaction of the markets to Trump's election was to push interest rates higher. A hike in interest rates in the U.S. means a hike in the funding cost of emerging economies like ours. 

Some believe that Trump may turn to mainstream policies once in government. My expectation is that in his initial days we will see him start doing what he promised. In his initial months we will see him become a different kind of leader, which could lead to a shock in the markets. 

What will be the potential consequences of Trump's policies for Turkey?

We will see three main differences compared to past administrations: Two economic and one political....