Markets edge back into the Turkish lira as Turkey's President Erdogan tightens his grip on power after Friday's failed coup attempt. But, as Hayley Platt reports, the recent events pose fundamental questions over an already fragile economy.
(SOUNDBITE) (English) U.S. SECRETARY OF STATE, JOHN KERRY, SAYING: "We will certainly support bringing the perpetrators of the coup to justice but we also caution against a reach that goes well beyond that." The U.S. Secretary of State reacting to events in Turkey at the weekend where more than 290 people were killed and 1,400 wounded after a coup by a military faction failed. President Erdogan was quick to quash the uprising - rounding up thousands of suspected plotters. His call to bring back the death penalty alarming the international community. At a time when alarms bells are going off over the economy. (SOUNDBITE) (English) ETX, MARKET ANALYST, DAVID PAPIER, SAYING: "We're predicting to see downside risk in their growth forecast by up to 2.9 percent. We're going to see a volatile lira especially in the sort term and they're also looking to keep rates on hold in their government meeting tomorrow where previously analysts thought their was going to be a rate cut." The latest events, together with Brexit, look to have put the brakes on Turkey's bid to join the EU. Its hopes appeared raised after a deal with the EU to accept migrants from Greece. But questions remain over the country's human rights record. And Erdogan's bidding to secure greater executive powers, a move that could push the country closer to autocracy. (SOUNDBITE) (English) ETX, MARKET ANALYST, DAVID PAPIER, SAYING: "It's going to be a very interesting time for Turkey in the way that they handle their negotiations with the EU to be part of Europe. This coup certainly hasn't helped." Turkey can't afford to alienate others. Tourism accounts for around 5 percent of its GDP and employs about half a million people - it was badly hit after a breakdown in relations with Russia. Despite a series of bomb attacks, the wider economy has so far been relatively resilient. The latest shock could be harder to resist.