This paper reviews economic developments in Turkey during 1992–95. Economic activity expanded sharply in 1993, sustained by buoyant domestic demand that was underpinned by expansionary fiscal and monetary policies, but accompanied by a large deterioration in the current account position. The...

This paper reviews economic developments in Turkey during 1994–97. Real wages increased rapidly during 1989–93, dropped sharply in 1994–95, and have since recovered modestly. Real wage flexibility stems in part from the absence of widespread wage indexation, despite chronic high inflation....

This paper reviews economic developments in Turkey during 1992–96. The Turkish economy rebounded in 1995, with real gross national product rising by 8.1 percent, reversing the decline of 6.1 percent in 1994. A strong pickup in activity in the second and third quarters of 1995 more than...

This paper describes economic developments in Turkey during the 1990s. Economic activity continued to increase rapidly in 1996, with gross national product growing by 8 percent in real terms, for the second year in a row. Although the pace of activity seemed to ease a little during the first...

This paper discusses key findings of the Seventh Review and Inflation Consultation Under the Stand-By Arrangement for Turkey. Macroeconomic developments have become less favorable since the last review in May 2007. Political developments have distracted attention from an ambitious economic...

This Selected Issues paper on Turkey describes the link between budget deficits and inflation. The paper outlines the key elements of the recent reforms and additional measures to reform the system. The study assesses the impact that inflation has had on the banking system, examines the sources...

Although Turkey’s economic performance has been strong, growing external imbalances exposed the country to a reversal of sentiment. In the wake of recent market turbulence, the authorities have recommitted to strong policies and stepped up program implementation. The authorities’ commitment...

This paper examines Turkey’s Seventh Review Under the Stand-By Arrangement, and Requests for Waiver of Applicability and Nonobservance of Performance Criteria. Successful macroeconomic management delivered an impressive economic performance in 2003. However, budget slippages interrupted this...

Turkey’s Fifth Review and Inflation Consultation under the Stand-By Arrangement and a Request for Waiver of Nonobservance and Applicability of Performance Criteria are discussed. Despite sharply higher interest rates, a weaker lira, and lower asset prices, economic activity has remained robust...