Report

Turkey Economic Monitor, May 2018 : Minding the External Gap

Show simple item record

collection.link.85
https://openknowledge.worldbank.org/handle/10986/2193
collection.name.85
Economic Updates and Modeling
dc.contributor.author
World Bank Group
dc.date.accessioned
2018-06-20T16:55:18Z
dc.date.available
2018-06-20T16:55:18Z
dc.date.issued
2018-05
dc.date.lastModified
2021-05-25T09:15:12Z
dc.description.abstract
A strong policy response - on the back of fiscal buffers, a strong financial system, and favorable external conditions - enabled Turkey to recover from its shock of 2016, with growth accelerating to 7.4 percent in 2017. The outcome of supply constraints and demand impulse are reflected in high inflation; a large current account deficit; and currency volatility. The developments are weighing on private sector confidence despite the ongoing boost to sales, employment, and profits. Enabling an orderly adjustment is important for productivity and potential output. Turkey has been prone to large economic swings in the past. The greater the volatility in growth, the more pronounced is the negative impact on productive investment and efficiency of resource allocation. The possibility for monetary policy to respond to adverse external developments is more challenging. A combination of high inflation (due to demand pressures, exchange rate passthrough, and higher production costs) on the one hand, and rising (and positive) policy rates on the other, creates challenges for a monetary stimulus in the event of an external shock. This challenge is exacerbated by the need to cool credit expansion, which has been above its long-term trend.
en
dc.identifier
http://documents.worldbank.org/curated/en/551541527656096358/Turkey-economic-monitor-minding-the-external-gap
dc.identifier.uri
http://hdl.handle.net/10986/29918
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC OUTLOOK
dc.subject
VOLATILITY
dc.subject
RECOVERY
dc.subject
RISKS
dc.subject
BUSINESS CYCLES
dc.subject
MONETARY POLICY
dc.subject
MACROECONOMIC POLICY
dc.subject
FISCAL TRENDS
dc.subject
PRODUCTIVITY
dc.subject
DEBT
dc.subject
BANKING
dc.title
Turkey Economic Monitor, May 2018
en
dc.title.subtitle
Minding the External Gap
en
dc.type
Report
en
okr.crossref.title
Turkey Economic Monitor, May 2018
okr.date.disclosure
2018-06-05
okr.doctype
Economic & Sector Work :: Economic Updates and Modeling
okr.doctype
Economic & Sector Work
okr.docurl
http://documents.worldbank.org/curated/en/551541527656096358/Turkey-economic-monitor-minding-the-external-gap
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/29918
okr.identifier.externaldocumentum
090224b085b71d89_2_0
okr.identifier.internaldocumentum
29935946
okr.identifier.report
126674
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/551541527656096358/pdf/126674-WP-PUBLIC-REVISED-TEM-May18-FinalVersion2.pdf
en
okr.region.administrative
Europe and Central Asia
okr.region.country
Turkey
okr.topic
International Economics and Trade :: Capital Flows
okr.topic
Macroeconomics and Economic Growth :: Business Cycles and Stabilization Policies
okr.topic
Macroeconomics and Economic Growth :: Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Fiscal & Monetary Policy
okr.topic
Poverty Reduction :: Inequality
okr.topic
Social Protections and Labor :: Labor Markets
okr.unit
Turkey Country Unit (ECCTR)

Show simple item record



This item appears in the following Collection(s)