wiiw Current Analyses and Forecasts
Turkey: Growth and inflation – mutual slowdown
in: Fasting or Feasting? Europe - Old and New - at the Crossroads
wiiw Current Analyses and Forecasts No. 10, July 2012 , pp. 103-105
Three phenomena are topical features of the Turkish economy: relatively low real GDP growth after a spectacular growth bonanza in 2010-11; relatively high, albeit decelerating, inflation; and a somewhat diminished, though still high current account deficit. This deficit, which is of a structural nature, raises concerns about the long-term sustainability of high growth. This notwithstanding, growth may re-accelerate in 2013 and 2014, if external circumstances allow for this. In recent years, Turkey's exporters have been successful in selling to non-EU countries, and this is likely to continue during the next few years. Slow growth or stagnation in the EU has an impact on Turkey, but not necessarily an overwhelming one.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: SEE, Turkey