After two decades in power, Recep Tayyip Erdogan cemented his dominance in Turkish politics with his victory in Sunday's presidential election.. The question now facing Turkey – and the world – is what this authoritarian leader will do next..

“As the head of a strategically important NATO state located between Europe and the Middle East, Erdogan has decisive international influence.. Domestically, where the economy is suffering from rampant inflation, its challenges are very complex,” writes Politico.

Sunday's elections are one of the biggest threats to Erdogan's rule. He became Turkey's most authoritarian leader since Mustafa Kemal Ataturk, who founded the country 100 years ago.. Erdogan won with 52% of the vote to 48% for his opponent, thanks to a campaign that solidified his authoritarian creed.

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Turkish president's critics say his victory reflects his control over state resources. They claim he is transforming the country into a more authoritarian state by influencing most of the media, as well as by imprisoning leading opposition and civil society figures.. Many opposition groups express fear that another five years of Erdogan in power could deal a devastating blow to Turkish democracy..

Erdogan's supporters insist the vote reflects Turkish appreciation for his 20-year reign, first as prime minister and then as president.. They say the country is much stronger than it was 20 years ago thanks to economic growth, improved infrastructure and a more active role in world affairs.. Erdogan's supporters believe that the president is not afraid to take a position independent of the West, despite Turkey's status as a member of NATO.

Noting the extreme polarization between the pro- and anti-Erdogan camps, Packer said his election victory " The expert added that in each next election, Erdogan takes a tougher stance on nationalist and conservative issues..

In his victory speech in Ankara, Erdogan himself made it clear that he is unlikely to soften his authoritarian course in the next five years.. He vowed that imprisoned Kurdish politician Selahattin Demirtas - a former party leader and presidential candidate - should remain in prison.. The European Court of Human Rights demands the release of Demirtas.

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But there is one problem that Erdogan cannot fully control - the Turkish economy.. The country is suffering from sky-high inflation, which reached 85% last year, as well as a weakened currency that hit an all-time low against the dollar on Friday.. The country's central bank is also suffering from a shortage of reserves ahead of the vote.. One of the main questions is whether Turkey will allow the lira to weaken further after the elections, or whether it will still be forced to do so under the influence of the markets..

An even more important question is whether Erdogan will return to a more orthodox economic policy or continue on his current course, which combines high costs and resistance to interest rate hikes.. Many economists believe that such a combination is not viable and could lead to a crisis after the elections, leaving the lira vulnerable.

Former Turkish central bank adviser Murat Jucer, now at GlobalSource Partners, told Politico he does not see a quick return to orthodox politics, with the position of the Turkish lira remaining the most difficult issue..

“Truly liquid reserves, excluding gold, official swaps, etc.. are now down to a meager $20-$25 billion, the liquidity of the Turkish lira has had to be sharply increased, and controls on foreign exchange demand have reached unsustainable proportions,” he said..

But Erdogan refuses to move forward. In his victory speech in Ankara, he vowed to keep interest rates low, which he says will bring down inflation, an argument many leading economists dismiss as absurd..

Defiant ally.

Perhaps what other countries pay the most attention to is what Erdogan's re-election means for Turkey's position on world affairs.. Under his rule, Turkey has become a decisive player and a daring ally in many vital issues, in particular, in Russia's war against Ukraine..

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Ankara refused to join sanctions against Moscow after Vladimir Putin's invasion of Ukraine, but played a major role in negotiating an agreement that unblocked Ukrainian grain exports via the Black Sea. As a member of NATO, Turkey has approved Finland's accession to the Alliance, but is still blocking Sweden's membership..

Packer of the Eurasia Group predicts that " Erdogan will finally ratify Sweden's NATO membership if Ankara is allowed to buy more F-16 fighter jets from the US, he said..

Turkey has an uneasy relationship with the EU, not only because Europeans believe Erdogan has undermined the rule of law in his own country, but also because of his threats to send millions of Syrian refugees who are in Turkey across the border..

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“With these elections, Turkiye will send a signal to the West. This country does not take into account what the West says, neither in the fight against terrorism, nor in determining its economic policy,"

Now that the elections are over, Erdogan is stronger than ever. Turkey's NATO allies will watch with dismay as his promises or threats come true..