Independent Insight Provider

Stewart Paterson

Macroeconomics

<p>The situation in Turkey is looking increasingly precarious. A typical emerging market crisis is developing fast. Currency weakness feeds inflation; interest rate rises are politically unpalatable and economically damaging. External indebtedness is made harder to service as the currency weakens. The current account deficit last year was about 5.5% of GDP and is on a widening trend. Higher oil prices may exacerbate the situation. </p><p>The March 2018 International investment position showed that…</p>

The situation in Turkey is looking increasingly precarious. A typical emerging market crisis is developing fast. Currency weakness feeds inflation; interest rate rises are politically unpalatable and economically damaging. External indebtedness is made harder to service as the currency weakens. The current account deficit last year was about 5.5% of GDP and is on a widening trend. Higher oil prices may exacerbate the situation. The March 2018 International investment position showed that…

Money Matters: Some Turkish Numbers for Investors to Ponder.