General Overview: "Productivity & Growth"
Turkiye’s growing economic stabilization has given rise to increased activity in the banking and finance market. Turkiye’s banking and finance sector is re-positioning itself to better facilitate growth of the private sector, as the financial sector’s development was impeded by past macro-economic instability and fiscal deficits, crowding out credit generation to the private sector. As a result, the sector today is smaller than its potential size and performing below its potential in terms of prudently allocating credit in the economy.
Turkiye is an emerging market with its own dynamics. Increasing credit to the private sector will not only facilitate capital accumulation, leading to growth and better labor productivity, but it will also improve the allocation of capital leading to Total Factor Productivity ("TFP") growth.
