CURRENT ACCOUNT DEFICIT AND ITS CAUSES IN TURKEY

Abstract

Over the past decade the Turkish economy has witnessed many notable achievements. Foremost among these, of course, has been the sharp reduction in the rate of inflation, falling from 3-digit to single-digit figures comes from. Similar success stories include uninterrupted economic growth and record-breaking export levels, etc., can be mentioned during this period. Recently, however, especially during the last five years, international organizations influential in global economic development such as the IMF, OECD, and IBDR have repeatedly drawn attention to the fragility of Turkey?s current account balance Many leading economists in Turkey along with the Central Bank have also started making statements such that "the current account deficit contains important risks, and measures need to be taken immediately." For these reasons, our study aims to describe why the current account deficit is so important and to identify the causative factors.