3.3 TURKEY

The Turkish economy continued to face geopolitical international tensions and unreformed political conditions after having experienced a coup attempt in July 2016 and engaged in military operations against Syria. At the same time, a series of terrorist attacks and political tension with Russia have weakened the tourist industry and foreign investments, exerting a direct negative impact on hotel investment and also the heating, ventilation, and air conditioning (HVAC) industry. Private investments have been delayed, leading to slower economic growth. All these factors negatively affected the government’s reform.