The Central Bank stated Turkey has the development potential in case in case its geopolitical problems decrease in its report on payment balance and international investment position. It is mentioned that these geopolitical problems also affect sector-based export performance.
With the expectation that FED wouldn’t be quick to increase the interest rates in the first quarter of 2016, opened the way to economic growth. Even though the third quarter of 2016 was relatively slower, there is still a development is the economy.
In their report, Central Bank evaluated this third quarter of 2016. It is claimed in the report that the current deficit was decreased in the third quarter of 2016, compared to the second quarter. Gold and energy was not effective in this decrease, as their foreign trade balance was off with 0.1 and 0.4 million dollars.
If we look by years, the current deficit had been steadily decreasing since 2014 but at the third quarter of 2016 increased by 3 billion dollars; making it 32,4 billion dollar. This numbers do not include gold. The current deficit balance has been destroyed by 5,6 billion dollars.
The regional export performance of Turkey will increase and expand in case of geopolitical issues are solved. Especially sector-based export is highly affected by these issues. Along with this, it is recorded that a recovery is possible in Turkey’s traditional export sectors textile and clothes.