Snapshot of the Turkish Economy

The performance of the Turkish economy has been strong in the recent few years on the back of the sound economic policies and structural reforms. Strong disinflation policy was backed by fiscal discipline, while EU-convergence and stand-by program with the IMF have been strong anchors.

The progress under the economic program was multi-dimentional and strong. Turkey has managed to deliver outstanding primary surpluses of around 6.5% of GNP, compared to an average of 3.5% over the last decade. With declining interest expenditures and strong primary surplus, budget deficit reached 2% of GNP, down from 16% in 2001 economic crisis. The success on the inflation front has been even more impressive. The inflation declined to single digits and pricing behaviours have been re-shaped partially with forward looking perspective, easing the inflationary inertia.