wiiw Forecast Reports

TURKEY: Back to boom and bust


Richard Grieveson

in: Darkest before the dawn?
wiiw Forecast Report No. Spring 2021, April 2021 , pp. 131-135

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Uniquely in CESEE, the Turkish economy posted positive full-year economic growth in 2020, reflecting credit expansion in response to the pandemic. A period of higher nominal interest rates stabilised the lira, but is likely now at an end thanks to yet another change at the top of the central bank. Growth will be strong this year but slow by 2022, either due to high real interest rates to get inflation under control, or a lira collapse and balance of payments crisis.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Turkey