Expectations About the Performance of Turkish Economy in 2nd half 2011

Turkish economy is currently the fastest growing economy in the world with a growth rate of 11% in the first quarter.

Now that the 12th June elections are over and AK party is elected for a third consecutive term in Office, the question what route the Turkish economy is going to follow is a main concern for many involved in the world of business as well as plain citizens struggling to take home bread.

As expected general elections held on 12th of June were resulted in the continuation of the
single party rule. Since the election results were no surprise it had only limited impact on the markets.

It is a fact on the other hand that AKP win in elections has not helped overcome concerns in the markets about global risk perception and high current account deficit.

On the contrary, the fact that Turkish economy is currently the fastest growing economy in the world with a growth rate of 11% in the first quarter and foreign trade deficit reached record-high levels in May caused concerns about overheating to become stronger.

This could be a good reason why the new cabinet should be focused on taking measures to ensure financial stability and decelerating the speed of rise in the current account deficit, in the coming period.

One thing is for sure still; Turkey is determined to pave its way to getting a place among the most economically developed countries in the world.

Editor
BUSINESS TURKEY TODAY

16 July 2011