After years of economic expansion, the Turkish economy is set to continue struggling in 2017 on the back of growing terrorist acts, lack of structural reforms, falling tourism figures and increased political uncertainty.
Growth is expected to contract 2.9 percent in 2016, the International Monetary Fund said last November. But as President Recep Tayyip Erdogan pushes to consolidate power, 2017 could be a lot worse.
"Turkey had sort of a perfect storm last year," Lubomir Mitov, chief central and eastern European economist at Unicredit, told CNBC on Friday.
This storm was caused by several political developments. Turkey's relationship with Moscow deteriorated after a Russian warplane was shot down when it entered into Turkish airspace; there was a failed coup last July to bring down President Erdogan; as well as "an acceleration in the intensity of terror acts" on Turkish soil, Mitov said.
The Turkish authorities have also been fighting against the self-proclaimed Islamic State (ISIS).
During New Year's Eve celebrations, 39 people, including more than two dozen foreigners, were killed in a nightclub. ISIS claimed responsibility for the attack.
The political context "comes against the background of a quite difficult economic situation," Mitov told CNBC.