## Turkey: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Turkey

_IMF Staff Country Reports, April 30, 2018_

## Source details

**Canonical URL:** [Turkey: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Turkey](https://www.imf.org/en/publications/cr/issues/2018/04/30/turkey-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-45822)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/04/30/turkey-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-45822/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/04/30/turkey-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-45822/index.json)
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## Bibliographic details
- Published: April 30, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484353196.002

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### Growth and recent developments
- Growth rebounded sharply in 2017, helped by strong policy stimulus in the wake of the 2016 post-coup attempt slump and by favorable external conditions.
- Expansionary policies that were initially warranted are no longer appropriate as the economy is showing clear signs of overheating.
- Political uncertainty and regional instability remain elevated.
- The integration of the many refugees poses challenges.

### Monetary and fiscal stance
- Monetary policy appears too loose and its credibility is low.
- On- and off-budget fiscal policies (including credit guarantee schemes and PPP activities) are expansionary and risk undermining Turkey’s hard-earned fiscal credibility.
- Policy implication stated in the source: expansionary policies should be withdrawn given overheating.

### Internal and external imbalances
- The economy faces internal and external imbalances:
  - A positive output gap.
  - Inflation well above target.
  - A current account deficit of more than 5 percent of GDP.

### Subject areas and keywords (as listed in the source)
- Subject: Current account deficits, Expenditure, External debt, Financial institutions, Foreign exchange, Inflation, Loans, Prices, Public investment and public-private partnerships (PPP)
- Keywords: authority, commercial loan, CR, economy, Global, growth contribution, headline CPI inflation, impairment signal, Inflation, inflation spillover, ISCR, labor market, Loans, policy, Public investment and public-private partnerships (PPP), public-private partnership, quality weakness, state loan guarantee

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2018/cr18110.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr18110.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/04/30/turkey-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-45822_