Turkey: downgrade and GDP collapse very closed

Failure coup in Turkey was added to the other problems of an already hot situation. And the economy can only suffer; Salman Ahmed, Chief Investment Strategist of Lombard Odier Investment Managers has declared in a statement that: "Given the strong intensification of political instability in Turkey and the external profile of the country's extremely fragile and deteriorating, we believe likely that Turkish assets remain under pressure also in the future, while the underlying structural stability is re-evaluated. " He added that the resolution rather rapidly, in terms of re-establishment of public order, and the consequent strengthening of Erdogan in the context that followed the failed coup "could help reduce the extreme tail risk scenario of a civil war."

"According to our approach oriented to fundamental, Turkey is identified as a vulnerable country. It has in fact weak fundamentals according to various measures of credit quality, which means that we assign to Turkey a lower weighting than the benchmark in the market capitalization. The risks of the downgrade of the credit rating have increased significantly in the light of the medium-term national and political situation, the security situation in the country will probably impact on revenues from tourism. This will have implications for the growth of turkish GDP and for the profile of the matches current, vulnerable than other emerging markets.