IMF Staff Country Reports

Turkey: Recent Economic Developments

Publication Date:

June 8, 1995

Summary:

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 unsustainability of this policy stance resulted in an exchange and financial market crisis in the first months of 1994. In April 1994, the authorities announced a comprehensive stabilization program that included substantial fiscal retrenchment, monetary tightening, and a structural reform agenda intended to strengthen the adjustment effort over the medium term.

Series:

Country Report No. 1995/043

Subject:

Banking Commercial banks Economic sectors External debt Financial institutions Foreign exchange Inflation Prices Public sector

Notes:

This report on recent economic developments in Turkey was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. In releasing this document for public use, confidential material may have been removed at the request of the member.