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Turkey's economy is under pressure after Imamoglu arrest

March 27, 2025

Turkey hopes to stave off yet another financial crisis as protests erupt and political tensions boil over following the arrest of Istanbul mayor Ekrem Imamoglu.

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Young people in Turkey are increasingly anxious about their future following the arrest of Istanbul Mayor Ekrem Imamoglu over fraud and terror allegations, which sparked nationwide protests.

Imamoglu's CHP party, Turkey's main opposition, responded by calling for a nationwide boycott targeting companies and media outlets perceived as pro-Erdogan.

The arrest also spooked financial markets, causing the Istanbul Stock Exchange to plunge nearly 7% percent on 19 March, leading to trading suspensions and restrictions to halt panic-selling.

This political shock added fresh uncertainty to an already fragile investment climate, a concern for Turkey’s key trading partners, such as Germany.

Despite the unrest, major German companies like Deutsche Bank, Volkswagen, Siemens, and BASF continue to invest in Turkey's economy, although the long-term impact on foreign direct investment remains uncertain.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.