The fall in the lira and the sharp rise in bond yields over the past month have cast the spotlight back onto Turkey’s persistent current account deficit and dependency on foreign capital inflows. At the root of this problem lies the country’s low domestic savings rate. Enacting policies to raise savings will be challenging, particularly against the backdrop of the recent political unrest. But arguably the prospects for reforms are better in Turkey than in the likes of Brazil and Russia.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services