Economic Update: 1Q15 GDP & April Current Account
Turkey GDP grew by more than expected (2.3% versus 1.6%) in the first three months of 2015, data from Turkstats showed on Wednesday. Despite the fact that the reported figure signaled a below par growth in the country, we saw the pressure on Turkish assets easing for a while following the...
The Outlook of Foreign Direct Investment
Turkey is running a large current account deficit and is a big borrower from abroad as the deficit roughly accounts for 6% of the country’s total GDP and short-term foreign debt stock hits $130 billion. Under such circumstances foreign capital would suppress the rising concerns around the country’s debt. However, Turkey seems to...
The Behavior of Current Account in Turkey
Turkey today posted better than expected current account deficit after naming the deficit as the second most important economic challenge after inflation in its Medium Term Plan. According to the posted official figures the deficit in August was $2.77 billion which is well below the market consensus of $3.2 billion. The country’s deficit...
On the Dynamics of Turkey’s Economic Growth
Turkey’s economic performance had been remarkable throughout the 2000s as well as it had been a shining light for many investors. Although the economy hit by 2008’s global financial crisis with a rapid but short-term contraction, Turkey was fast to find a way out of recession. The following two years, Turkey was the...
McKinsey Believes in Turkey Failure
In other words, they do not believe in Dr. Erdem Basci, the governor of the Central Bank of Turkey, who said “believe in me and win” while estimating year-end USD/TRY rate at 1.92 in a TV interview (for those who wonder, the rate has hanged between 1.96 and 2.08 since the interview).