Turkey Vulnerable to Economic Headwinds

But the past 18 months have been bumpy for Turkey, and its backers. There have been vociferous protests against Erdogan, a deadly mining disaster, and the economy has slowed sharply.

Just last week, the government cut its forecast for growth to just 3.3% this year, and 4% in 2015. The Turkish lira has fallen 12% against the dollar over the past 12 months.

Recent volatility in financial markets has exposed Turkey’s vulnerabilities.

Finance Minister Mehmet Simsek admits there’s been a stream of bad news for emerging markets but is cautiously optimistic that Turkey won’t be starved of the capital it needs.
“I realize there are huge challenges out there, but I don’t think it will be as bad as in the past partly because fundamentals are better in emerging markets but partly because we are not going to see synchronized global monetary tightening,” he told CNN’s emerging markets editor John Defterios.

Beyond market turbulence, the NATO member is also nervously watching the advance of ISIS fighters near its border with Syria and across Iraq.

Turkey has already spent $4.5 billion taking care of 1.6 million refugees, and the numbers are rising.
And it’s suffered a loss of trade too.

via CNN

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.