Executive Summary
Real GDP in Turkey grew at a stronger pace in 2013 than it did during the preceding year. That said, momentum in the Turkish economy remains slow relative to the supercharged growth rates that were registered during the boom years of 2003-2007, and most analysts look for deceleration in economic activity in 2014. The central bank tightened policy significantly in response to the sharp depreciation of the Turkish lira earlier this year, and higher interest rates will likely weigh on growth in consumer durables and fixed investment spending this year.
Turkey’s gaping current account deficit, which reflects a shortfall of its national savings relative to its investment, makes the country vulnerable to exogenous shocks. Current account deficits need to be financed by capital inflows from abroad, and capital flows can reverse quickly when investors turn risk averse. Although the depreciation of the lira should aid the adjustment process, the current account deficit likely will not disappear anytime soon. In other words, the Turkish economy and the value of the Turkish lira likely will remain vulnerable to downside shocks for the foreseeable future.
General Risk Warning for stocks, cryptocurrencies, ETP, FX & CFD Trading. Investment assets are leveraged products. Trading related to foreign exchange, commodities, financial indices, stocks, ETP, cryptocurrencies, and other underlying variables carry a high level of risk and can result in the loss of all of your investment. As such, variable investments may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall Witbrew LLC and associates have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to investment trading or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD rebounds to 1.0650 on renewed USD weakness
EUR/USD gained traction and rose to the 1.0650 area in the early American session on Tuesday. Disappointing housing data from the US seem to be weighing on the US Dollar, helping the pair stretch higher.
GBP/USD stays near 1.2450 after UK employment data
GBP/USD gains traction and trades near 1.2450 after falling toward 1.2400 earlier in the day. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, limiting Pound Sterling's upside.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world supported by a strong US labour market.