IMF: Foreign risks for Turkey require close monitoring

International Monetary Fund said that improvements in public and private sector in the past five years have strengthened Turkey's resistance against shocks, however that foreign risks still continued.

IMF: Foreign risks for Turkey require close monitoring
International Monetary Fund (IMF) said on Tuesday that improvements in public and private sector in the past five years have strengthened Turkey's resistance against shocks, however that foreign risks still continued.

IMF released a report following conclusion of reviews and said ongoing foreign risks required close monitoring.

The report said macroeconomic developments have become less favorable since the last review in May 2007.

The report said, "supply-side shocks have slowed growth while stocking inflationary pressure. The unfolding global credit crunch is also weighing on the economic outlook and heightening risks, which stem mainly from a large current account deficit and private sector's significant reliance on external financing."

The report said political developments have distracted attention from an ambitious economic agenda, and noted that direct foreign investments were active in 2007 because of mergers and purchases and this met half of the current account deficit in Turkey.

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Last Mod: 13 Ağustos 2008, 10:57
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