Country Report Turkey

Current account deficits and a currency plunge are the major risks

• Economic upswing in H1 of 2011, driven by low interest rates, public sector spending and large foreign capital inflows.

• Inflation has been driven by a weaker lira (which has increased import costs).

• Sector performance: general upswing, but textiles and plastics are still suffering.

• Much of the high current account deficit is financed from short-term investment, and adverse investor confidence may trigger a massive withdrawal.

• A sudden fall in the lira exchange would make foreign debt service more expensive and lead to more private sector defaults.

Real GDP growth (%)

Source: EIU / IMF

Fiscal balance (% of GDP)

 Source: EIU / IMF

   Download full country report on Turkey

Download full country report on Turkey

 
General Information

Capital: Ankara
Government type: Republic
Currency: Turkish Lira (TRY)
Population: 72.6 million
Status: Lower middle income country
(GDP/capita: US$9,719 in 2011)
 
Main import sources (2010)

• Russia: 11.9%
• Germany: 9.5%
• China: 9.3%
• USA: 6.6%
• Italy: 5.5%

Main export markets (2010)

• Germany: 10.1%
• UK: 6.4%
• Italy: 5.7%
• France: 5.3%
• Iraq: 3.1%

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Date: November 2011