Turkish Finance Minister: Protests a 'Hiccup' for Economy
Protests in Turkey that have led to weeks of turmoil and exacerbated a sell-off in the lira and Turkish stocks have been described as a "hiccup" by the country's finance minister.
Mehmet Simsek said the month long protests, that have resulted in four deaths and thousands of injuries, were a "mishap" and the nation's economy is resilient.
Turkey has been hard hit by a sell-off in emerging markets, with the country's benchmark index falling 24 percent between May 22 and June 24 before recovering this week. The lira fell to a record low of 1.9602 against the dollar on Monday, but it has recovered in recent days as the central bank has intervened to curb volatility and as investors have returned to beaten-down emerging market investments.
(View More: Turkish Turmoil: Scenes From Turkey's Protests)
"It is very difficult to determine the impact but it is very clear that political unrest has probably been a primary reason Turkey has underperformed compared to other emerging markets. Having said that, now that political unrest has subsided, and has essentially ended, the chances of permanent damage is very low," Simsek told CNBC.
Turkey has come under international criticism for its handling of the protests, which began in late May over plans to build a shopping mall near an Istanbul park.
(Read More: Turkey Markets Hit After Weekend of Violence)
Commenting on Turkey's plans to join the European Union (EU), which have been put on hold by the EU as a new round of membership talks have been postponed for at least four months, Simsek said Europe needs Turkey, because of its "dynamism".
"I think Turkey still needs Europe but equally Europe needs Turkey, because Turkey brings dynamism, a lot of diversity, a lot of strength in terms of regional, in terms of global affairs. In every single way from energy supply security to dialogue between different civilizations."
(Read More: Turkish Stocks Drop 10.5% on Fourth Day of Protests)
"So I really think the story is still out there, it's a strong story, despite the kind of noise, despite the recent relatively unfavorable politics of enlargement. We still believe in the story. It will work out," Simsek said.
—By CNBC's Jenny Cosgrave: Follow her on Twitter @jenny_cosgrave