The Current Account Deficit And The Tax Increases In Turkey

The unprecedented level of economic growth in Turkey during the last decade have created an economy with a GDP person of USD$ 10.000, an inflation rate cut down below the double digits, a purchasing power more than quadrupled, capacity utilization ratio of 75.6%, a government budget deficit below the Maastricht criteria of 3% and a public debt to GDP reduced down to 36% of the GDP. However despite such a glimmering performance, the problem of current account deficit continued to haunt the Turkish economy and the country's current account deficit has recently exceeded USD$ 55 billion and the IMF forecast for the Turkish current account deficit for the year 2014 is USD$ 61.5 billion.