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

April 30, 2018

Preview Citation

Format: Chicago

Turkey: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Turkey, (USA: International Monetary Fund, 2018) accessed September 18, 2024

Summary

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. Although expansionary policies were initially warranted, they are no longer appropriate as the economy is showing clear signs of overheating. Monetary policy appears too loose and its credibility is low; and on- and off-budget fiscal policies (including credit guarantee schemes and PPP activities) are expansionary and risk undermining Turkey’s hard-earned fiscal credibility. As a result, the economy faces internal and external imbalances: a positive output gap, inflation well above target, and a current account deficit of more than 5 percent of GDP. Meanwhile, political uncertainty and regional instability remain elevated, and the integration of the many refugees poses challenges.

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

Publication Details

Pages:

82
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/110
Stock No:

1TUREA2018001
ISBN:

9781484353196
ISSN:

1934-7685

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