Harris’ election more favorable for Türkiye than Trump’s, economist Krugman says

Nobel Prize-winning economist Paul Krugman asserted that a victory for U.S. Vice President Kamala Harris would be better for Türkiye than a second term for Donald Trump, warning that Trump’s reelection would pose a significant shock to the global economy.

In a recent exclusive interview with CNBC-e, Krugman emphasized Türkiye’s economic stability and the critical role of investor confidence.

Speaking at the “Looking at the Next Century with Atatürk’s Vision” conference, organized by Isbank in Istanbul, Krugman pointed out the favorable environment for foreign investment in Türkiye, while also stressing that global investors seek reassurance.

Economic stability in Türkiye

Krugman remarked that Türkiye has made strides toward stabilizing its economy, creating a promising environment for investment.

“There is an advantageous environment for investment in Türkiye,” Krugman said, “but foreign investors are looking for confidence before committing to significant investments.”

He emphasized that Türkiye does not face a scenario akin to Argentina’s 2002 financial crisis and noted that heterodox economic policies are not necessarily incorrect.

The economist further suggested that interest rate cuts by the U.S. Federal Reserve and the European Central Bank would likely support emerging markets, including Türkiye. “Fed and ECB rate cuts will help developing countries,” he added.

‘Harris’ election is better for Türkiye than Trump’s’

Krugman also shared his perspective on the upcoming U.S. presidential election, comparing the potential impacts of the two leading candidates.

He noted that a victory by current U.S. Vice President Harris would be a more favorable outcome for Türkiye compared to another term for Trump. “If Trump is elected, it will be a significant shock for the global economy. Harris’ election would be better for Türkiye than Trump,” Krugman stated.

Concerns over global economic risks

Krugman, however, warned that despite the positive outlook, developing countries still face the risk of economic crises. “There is still a risk of crisis in emerging markets,” Krugman cautioned, pointing to broader global economic uncertainties.