The Turkish Economy and the Development of its Financial Sector SEDAT AYBAR* Introduction It is common for economists to evaluate the real world in a way that fits measureable precepts. This is to say, economists evaluate the world and the performance of economies in technical terms. An attempt to examine the Turkish economy and the evolution of its financial sector is no exception. Despite global economic meltdown, Turkish macro-economic performance has been rather good; but an ever-growing current account deficit, domestic credit expansion, and high levels of unemployment are problematic areas. This paper investigates Turkish economic performance by focusing on problematic areas that may destabilise this performance and lead to its breakdown. Turkish Economic Performance Recently released data on the Turkish economy paints a rather optimistic picture. The Turkish GDP growth rate hit 8.8% in the second quarter of 2011, hence securing for Turkey a second place after China in the hierarchy of world economic growth rankings. As can be seen from Table 1, below, after shrinking by 4.7% in 2009, the Turkish economy has recovered, achieving a 8.9% growth rate in 2010; and, with the Central Bankâ€™s growth estimate for 2011 raised to 6.4% from 5.9% Turkey is poised to become one of the leading countries in terms of high growth rates. (CBRT, 2011).
* Associate Professor of Economics, Department of Economics, Chair Director of Centre for Middle-eastern and African Studies, Kadir Has University Fatih - Cibali - Istanbul.
A Publication based on the International Conference organised at the European Parliament/Brussels by Dr. ELENI THEOCHAROUS, Member of the Eu...