"What is essential now is to dwell effectively on the question of decreasing high inflation and unemployment rate and also put out the fire in the households kitchen," the expert pointed out, referring to rising food prices which made Turks suffer since the beginning of the year.

This factor was seen as one of the reasons of Erdogan winning popular support in the March local elections and subsequently in losing Istanbul.

"Giving full attention to economic reforms is a must. Turkey has the potential of continuing in the path of economic growth by getting rid of (external) risks," indicated Erkan.

Markets have reacted positively to the end of the election uncertainty as the Turkish lira gained nearly 2 percent against the U.S. dollar and stocks and bonds also rallied.

When the March 31 vote was scrapped in Istanbul on the basis of irregularities, investors questioned the integrity of Turkey's democratic institutions and wondered whether the months of additional campaigning would distract the country from needed economic reforms.

Through the course of a 16-year run as Turkey's leader, Erdogan has carried on his promises of potent economic growth until a currency meltdown last year followed by the first recession in a decade.

The immediate result is inflation running at an annual rate of about 19 percent, besieging ordinary people and companies alike. The official unemployment rate exceeds 14 percent.

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