The past 12 months marked a "lost year" for Turkey, which would have experienced stronger economic growth had it not been for deteriorating geopolitical relations, an economist has told CNBC.
Unicredit's Chief Economist for Central and Eastern Europe Lubomir Mitov believes Turkey should have "benefitted tremendously" from the situation in Europe — where the central bank boosted asset purchases to buoy the economy — as well as low oil prices. However, internal political strife and geopolitics helped offset those gains, he explained.
"This was a lost year for Turkey," Mitov told CNBC Wednesday.
"Turkey is underperforming (and) has been underperforming for the full year...it's even underperforming after the elections. If you look at the markets, Turkey is probably 3 to 4 percent weaker than it should have been after the elections, but for these geopolitical problems," Mitov said.