Turkey Economic Monitor, December 2018 : Steadying the Ship
Mid-2018 was a period of intense market volatility and rising economic stress in Turkey that was precipitated by existing macroeconomic imbalances and elevated political tensions with the United Staes. A confluence of burgeoning domestic economic i...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/566931547042740293/Turkey-Economic-Monitor-Steadying-the-Ship http://hdl.handle.net/10986/31129 |
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okr-10986-311292021-05-25T09:21:03Z Turkey Economic Monitor, December 2018 : Steadying the Ship World Bank Group ECONOMIC GROWTH CAPITAL FLOWS FINANCIAL SHOCK BANKING ECONOMIC OUTLOOK INFLATION NEW ECONOMIC PROGRAM ADJUSTMENT REFORM AGENDA Mid-2018 was a period of intense market volatility and rising economic stress in Turkey that was precipitated by existing macroeconomic imbalances and elevated political tensions with the United Staes. A confluence of burgeoning domestic economic imbalances and a more challenging external environmentled to a dent in investor confidence in Turkish assets and a sharp slowdown in capital flows to Turkey in 2018 Q2-Q3. Though this did not technically amount to a sudden stop, Turkey was particularly badly affected by a general move away from emerging markets (EMDE) due to its accumulated macro imbalances (high current account deficit, high inflation, overheating economy) and perceived policy weaknesses. Market volatility in Turkey has subsided since the turbulence in August, but the economic situation remains fragile. Turkey’s large external exposure leaves it vulnerable to further market jitters and external monetary tightening. The external shock in the summer of 2018 also translated into significant real sector impacts, including a sharp acceleration in inflation from already elevated levels. The gap between consumer and producer price inflation widened significantly since July, reflecting suppliers’ inability to pass on priceincreases to consumers due to declining demand. High production costs together with slowing demand have prompted supply side adjustments. 2019-01-09T18:19:33Z 2019-01-09T18:19:33Z 2018-12 Report http://documents.worldbank.org/curated/en/566931547042740293/Turkey-Economic-Monitor-Steadying-the-Ship http://hdl.handle.net/10986/31129 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work Europe and Central Asia Turkey |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
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English |
| topic |
ECONOMIC GROWTH CAPITAL FLOWS FINANCIAL SHOCK BANKING ECONOMIC OUTLOOK INFLATION NEW ECONOMIC PROGRAM ADJUSTMENT REFORM AGENDA |
| spellingShingle |
ECONOMIC GROWTH CAPITAL FLOWS FINANCIAL SHOCK BANKING ECONOMIC OUTLOOK INFLATION NEW ECONOMIC PROGRAM ADJUSTMENT REFORM AGENDA World Bank Group Turkey Economic Monitor, December 2018 : Steadying the Ship |
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Europe and Central Asia Turkey |
| description |
Mid-2018 was a period of intense market
volatility and rising economic stress in Turkey that
was precipitated by existing macroeconomic imbalances and
elevated political tensions with the United Staes. A confluence of
burgeoning domestic economic imbalances and a more
challenging external environmentled to a dent in investor
confidence in Turkish assets and a sharp slowdown in capital
flows to Turkey in 2018 Q2-Q3. Though this did not
technically amount to a sudden stop, Turkey was particularly
badly affected by a general move away from emerging markets
(EMDE) due to its accumulated macro imbalances (high current
account deficit, high inflation, overheating economy) and
perceived policy weaknesses. Market volatility in Turkey has
subsided since the turbulence in August, but the economic
situation remains fragile. Turkey’s large external exposure
leaves it vulnerable to further market jitters and external
monetary tightening. The external shock in the summer of
2018 also translated into significant real sector impacts,
including a sharp acceleration in inflation from already
elevated levels. The gap between consumer and producer price
inflation widened significantly since July, reflecting
suppliers’ inability to pass on priceincreases to consumers
due to declining demand. High production costs together with
slowing demand have prompted supply side adjustments. |
| format |
Report |
| author |
World Bank Group |
| author_facet |
World Bank Group |
| author_sort |
World Bank Group |
| title |
Turkey Economic Monitor, December 2018 : Steadying the Ship |
| title_short |
Turkey Economic Monitor, December 2018 : Steadying the Ship |
| title_full |
Turkey Economic Monitor, December 2018 : Steadying the Ship |
| title_fullStr |
Turkey Economic Monitor, December 2018 : Steadying the Ship |
| title_full_unstemmed |
Turkey Economic Monitor, December 2018 : Steadying the Ship |
| title_sort |
turkey economic monitor, december 2018 : steadying the ship |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/566931547042740293/Turkey-Economic-Monitor-Steadying-the-Ship http://hdl.handle.net/10986/31129 |
| _version_ |
1764473605664538624 |