Worldwide economic turbulence seems to be reaching Turkey, one of the most rapidly burgeoning economies in the world. The government is reducing its growth predictions and claims that it is now importing more goods and services than it can export.
The Turkish Deputy Prime Minister and Finance Minister Ali Babacan said on October 13 that the nation’s economic activities are probably poised to slow down next year.
He warned that the government had changed its predictions for economic growth to 4 percent in 2012 from five percent, after hitting an estimated 7. 5 percent this year.
Until now, the economic situation in Turkey seemed to be immune to the negative news, maintaining a respectable growth level during the past few years.
A considerable quantity of goods being imported into a territory versus being exported can often be an indicator of an unbalanced economy. To amend the imbalance, countries borrow funds from other nations at low interest rates. However, the longer the deficit goes on, the higher the level of investment debits will be accrued, which takes a toll on a country’s long-term economic stability.