{
  "title": "Turkey: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Turkey",
  "publication": "IMF Staff Country Reports, June 11, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2021/06/11/turkey-2021-article-iv-consultation-press-release-staff-report-and-statement-by-the-50205",
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  "summary": "In Turkey, as in other countries, the human and economic toll of the COVID-19 pandemic has been severe. Thousands of lives have been tragically lost and many livelihoods compromised. The initial policy response to the pandemic—and subsequent sharp growth rebound—set Turkey apart from its peers.",
  "sections": [
    {
      "heading": "Pandemic impact and macroeconomic outcome",
      "content": "- The human and economic toll of the COVID-19 pandemic in Turkey has been severe: \"Thousands of lives have been tragically lost and many livelihoods compromised.\"\n- Despite the pandemic, Turkey experienced positive economic growth in 2020 due to rapid monetary and credit expansion and large liquidity support.\n- Rapid policy response and a sharp growth rebound set Turkey apart from many peers."
    },
    {
      "heading": "Emergent vulnerabilities and transmission channels",
      "content": "- Policy measures that supported growth also aggravated pre-existing economic and financial vulnerabilities:\n  - Higher inflation.\n  - Increased dollarization.\n  - A large shift in the current account position that increased pressure on the lira.\n  - Heavy foreign exchange sales that led to steep reserve declines from already-low levels."
    },
    {
      "heading": "Policy developments and shifts",
      "content": "- A policy shift in late 2020 emphasized:\n  - Tighter and more transparent monetary policy.\n  - Slower credit growth.\n- The late-2020 policy shift was characterized as both welcome and necessary.\n- The durability and depth of the policy shift were questioned in March 2021 after a change in central bank leadership:\n  - The lira weakened markedly.\n  - Interest rate spreads widened."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subjects: COVID-19, Financial institutions, Foreign exchange, Health, Inflation, International organization, Monetary policy, National accounts, Prices, State-owned banks\n- Keywords: COVID-19, credit policy, Europe, fiscal policy coordination, FX rediscount credit repayment, Global, IFC portfolio implementation, IMF staff calculation, Inflation, policy uncertainty, State-owned banks\n\n---\n\n Content in this bundle\n\n- 1turea2021001\n  - 1turea2021001 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1turea2021001 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: June 11, 2021",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513573175.002",
    "The human and economic toll of the COVID-19 pandemic in Turkey has been severe: \"Thousands of lives have been tragically lost and many livelihoods compromised.\"",
    "Despite the pandemic, Turkey experienced positive economic growth in 2020 due to rapid monetary and credit expansion and large liquidity support.",
    "Rapid policy response and a sharp growth rebound set Turkey apart from many peers.",
    "Policy measures that supported growth also aggravated pre-existing economic and financial vulnerabilities:",
    "A policy shift in late 2020 emphasized:",
    "The late-2020 policy shift was characterized as both welcome and necessary.",
    "The durability and depth of the policy shift were questioned in March 2021 after a change in central bank leadership:",
    "Subjects: COVID-19, Financial institutions, Foreign exchange, Health, Inflation, International organization, Monetary policy, National accounts, Prices, State-owned banks",
    "Keywords: COVID-19, credit policy, Europe, fiscal policy coordination, FX rediscount credit repayment, Global, IFC portfolio implementation, IMF staff calculation, Inflation, policy uncertainty, State-owned banks",
    "**1turea2021001**"
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