wiiw Forecast Reports

TURKEY: Back to the eye of the storm


Richard Grieveson

in: Overshadowed by War and Sanctions
wiiw Forecast Report No. Spring 2022, April 2022 , pp. 125-129

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Even before Russia invaded Ukraine, Turkey was in big trouble, with inflation at eye-watering levels, a currency that had halved in value in just a few months, a rapidly expanding current account deficit and rising pressure on external financing due to aggressive Fed tightening. Now the situation is even more difficult, owing to Turkey’s strong economic ties with Russia and its heavy reliance on commodity imports. The best-case scenario is a sharp slowdown in growth; meanwhile, the risk of a renewed period of macroeconomic and financial instability has increased.


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

Countries covered: Turkey