SUSTAINABILITY OF CURRENT AREA: AN APPLICATION ON TURKEY

Abstract

The current account deficit is based on the consumption of more than an economy produces, that is, the expenditure of more than its income, and the borrowing in the form of a currency. It is known that the current account balance of that country is followed and that the difference between the income and expenses from items in the balance of payments balance is the current deficit of that country. What is important is what resources are financed and sustainability. The fact that Turkey has a current account deficit of $ 32 billion in 2016 is in fact the currency demanded by Turkey in the World. While this demand is found in the outside world, risks such as growth, economic and political stability, geopolitics play a decisive role in addition to the difference of return of fund holders who meet this demand. In our study, the sustainability of the current account deficit in Turkey in 2003-2016 period was investigated and quarterly data were used. As a result, the current account deficit in Turkey is seen to be sustainable.