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To: Kaslin

The Turkish economy is doing fine.

Turkey’s $735 billion economy grew 8.8 percent in the second quarter, faster than India’s and the IMF projects 7.5 percent economic growth for Turkey this year.


2 posted on 10/05/2011 7:27:02 AM PDT by LowTaxesEqualsProsperity
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To: LowTaxesEqualsProsperity

Obviously you didn’t read to the end of the article. Turkey’s 8% growth is almost all internal, and based on a credit bubble fueled by interest free loans. The growth is also all internal demand - e.g there is little foreign investment in Turkey. They have a current account deficit of 9% of GDP, and will eclipse Greece’s CAD of 10% later this year. Not mentioned in the article, 65% of its economy is service oriented (where much of the domestic demand is driving growth), under 25% is industrial. That is a bubble sort of like our housing bubble which popped in 2008.

They have a budget deficit of almost 20%. So, when it comes time to bring its accounts current, who will bail them out? China? Saudi Arabia? Not Russia, not USA, not EU. Greece will be bailed out by the EU and the US bails itself out in several different ways (including attracting foreign investment) but Turkey was not even given a path to EU membership (and they are quite angry about that, indeed that was one of the instigators for their turn away from secularism).

The article goes on to imply that they are punching above their weight by giving aid to groups like the Muslim Brotherhood and the others, and that despite its outer projections of a growing country it is really a “house of cards” waiting to come down.


30 posted on 10/05/2011 6:32:55 PM PDT by monkeyshine
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