Euromonitor: Turkish Economy Constrained By Multiple Factors

Although the Turkish economy performed well in the aftermath of the 2008 global economic crisis, it has nevertheless been compromised by factors ranging from the weakness of the Turkish lira to the heavy influx of Syrian refugees, according to a recently released report by global market research firm Euromonitor International.

According to the report, the constraining factors in question included a “tight monetary regime, political upheaval, volatility in foreign capital inflows, weakening currency and an influx of Syrian refugees.” It said that the primary barriers to resolving these issues include “institutional weakness, property market glut and external sector headwinds.”

Euromonitor mentioned in its report that Turkey ranked 179th in a pool of 203 countries on the World Bank Stability Index last year, when the country became engulfed by political turmoil characterized by mass demonstrations, excessive police violence, widespread corruption allegations leveled at high-ranking government officials and the subsequent extensive reorganization of the Cabinet.

The report underlined that the three-year-long Syrian civil war has contributed to the country's social, economic and political tension. Turkey has hosted large numbers of Syrian refugees, who have filled camps in border regions and moved to major cities such as İstanbul. Resentment over the influx of refugees has led to clashes between Syrians and Turkish citizens, and on certain occasions commercial areas established by Syrians have been attacked by angry mobs.

Vulnerability to inflows of foreign direct investment (FDI), a high budget deficit that totaled 1.5 percent of last year's gross domestic product (GDP), and the heavy presence of consumer credit and corporate loans in the banking sector were among other challenging factors in the Turkish economy that the report highlighted.

(Cihan/Today's Zaman)