The overriding concern behind the new Turkish incentive scheme
is the resumption of the macro-economic stability of the Turkish
economy. The country has been growing in an unprecedented speed for
the most part of the last decade. The volume of exports has
steadily increased and finally exceeded 100 billion dollars and the
staunch economic programme by the Turkish government have managed
to reduce the inflation rates in to a historical low level during
the course of the last decade. However, despite such strong
economic growth and the implementation of much neglected reforms,
two interconnected problems still continue to hunt the Turkish
economy. As the economy continued to grow, the Turkish consumers
continued to spend creating the historical low in savings. Turkish
saving rate only stands at 12.6% of the GDP now and what is more
important is the fact this is connected with another major problem
of the Turkish economy; the current account deficit. The current
account
