An unusual trend has been the case for the Turkish economy for a couple of years. The country’s outward direct investment has been rising, although it has started to attract fewer FDI.
Finance ministers and central bankers of the Group of 20 countries (G-20) covered a number of global issues over the last three days in Istanbul.
I won’t make movie or book recommendations, although the heading of the column suggests the opposite.
Russian President Vladimir Putin’s announcement in December 2014 to scrap the South Stream for the sake of another pipeline to the European markets via Turkey was deemed very surprising.
The Central Bank announced its rate decision yesterday amid the unending comments by politicians, who want a significant rate cut.
Turkey’s gross domestic product is expected to grow at around 3 percent in 2014. This growth rate is a “modest high” when the current situation in the European markets, Turkey’s main trade partner, is considered, along with the surrounding geopolitical risks.
Turkey has a severe current account gap problem. The gap has recently decreased to 6 percent of the GDP, but this has mainly been caused by the plunge in oil prices.
2014 was a “deadly” year for Turkey and for the country’s workers. Fatal mining and construction accidents left hundreds of workers dead and big scars for their families as well as in our memories.
As the global economy has recently entered another crazy era with the plunging oil prices down to $60 per barrel, the Turkish economy is again in the middle of opposing trends; old and new “norms.”
