Nora Neuteboom: Warning Signal and Emerging-Markets Economist

nora neuteboom: While the local elections have no effect on the leadership at a national level, the People Alliance losing the control over the big cities constitutes a clear warning signal that people are not satisfied with the current economic policy of the regime, wrote Nora Neuteboom, emerging-markets economist, and Georgette Boele, senior currency strategist at ABN AMRO. Last month, Treasury and Finance Minister Berat Albayrak announced that Turkey will embark on a round of reforms after the elections, and presented a roadmap for the coming years, according to Market Watch. Given the results of the election, however, we think momentum behind structural reforms is likely to fall somewhat, they said. Erdogan's People's Alliance, comprising the AKP Justice and Development Party and MHP, Nationalist Movement Party lost control of Ankara, Istanbul and Izmir Turkey's three largest cities in terms of population and economic clout. Turkey is highly dependent on foreign investors to fund its burgeoning current-account deficit, most of which is dollar-denominated, which can leave it at the mercy of market gyrations. Caption outside of wrapper for normal article images A failure to bring about structural reforms likely won't appease investors and is likely to stoke further consternation about the integrity of financial markets. The current-account deficit, is a measure of a nation's debt to other countries. (news.financializer.com). As reported in the news.