Picard Kentz & Rowe LLP

  • Home
  • People
  • Practice Areas
    • International Trade
    • International Investment and Project Development
    • International Disputes/Rights & Obligations of Sovereign States & Autonomous Regions
    • U.S. & International Regulation and Legislation
    • Board Advisory Work
  • Global Experience
  • News/Blog
  • Contact Us

June 20, 2013 by PKR

Turkey’s economic growth at risk

In a recent article for Foreign Policy, Aaron Stein wonders whether the ongoing mass protests in Turkey could exacerbate an already worrisome economic situation. According to Stein, Turkey’s unique approach to weathering the global recession, paired with a decrease in direct foreign investment, has made the country overly dependent on short-term speculative capital flows.
If the protests–and the state’s excessively heavy-handed response–continue, investors might question the stability of Turkey’s government and divert the fickle flow of speculative money elsewhere. The protests have and could continue to have an adverse effect on Turkey’s tourism industry as well. Furthermore, as Stein points out, “the combination of a slumping EU economy and the various crises in Middle East has made it harder for Turkey to export its way out of economic malaise. Ankara will therefore have to rely on domestic demand to fuel economic growth, which will inevitably increase the country’s current account deficit — in turn making it even more vulnerable to the whims of the U.S. Federal Reserve.”
Print Friendly, PDF & Email

Filed Under: Foreign Investment Tagged With: Turkey

Contact

Picard Kentz & Rowe LLP
1750 K Street NW, Suite 800
Washington, DC 20006
Phone: +1 202 331 4040
Fax: +1 202 331 4011
info@pkrllp.com

Recent Posts

  • Court of International Trade Hobbles an Essential Enforcement Tool
  • Section 232 Steel Product Exclusion Process Will Be Determined by Participation of U.S. Steel Mills

Sitemap

PKR LLP Sitemap

© Picard Kentz & Rowe LLP