Is Turkey's Economic on Shaky Ground?

Turkey Economic Outlook February 7, 2017 The recent revision of Turkey’s national accounts led to a significant improvement in the country’s economic position relative to that of other emerging markets, and yet it is still plagued by economic weaknesses. The government’s attempt to stimulate the economy through massive spending has so far failed to suffice as growth continues to be undermined by heightened political turmoil, the deteriorating business environment and the plummeting currency. Last month, Fitch Ratings downgraded Turkey’s sovereign bond rating to sub-investment grade, stripping the country of its last remaining investment grade status. The agency cited the unstable political and security environment as the main reasons behind the revision. In the wake of the news, the lira tumbled and hit a new record low. Complicating matters further, President Recep Tayyip Erdogan has promised to hold a referendum on constitutional reform in April, which has been in the offing for some time. In the current difficult economic environment, he will have to come up with credible arguments and tangible results to convince the voters that the proposed changes will benefit the economy in the future. Read more: http://www.focus-economics.com/countries/turkey