The reflections of 2008 global financial crisis on Turkish economy

The US financial crisis, which began in the US with the collapse of the subprime mortgage system and spread to the world has emerged as the first global crisis after 1929. One of those countries affected by the crisis was undoubtedly Turkey. In this study, it was aimed to investigate the impacts of the 2008 global financial crisis on Turkey's economy. For this purpose, the current financial crisis models and types of crises, globalization phenomenon and the internal dynamics of neoliberal economic policy were included in the study. Then, the focus was on how the subprime mortgage system, which was the starting point of the crisis, came to a point of obstruction in the US and the effects of the crisis on Turkey's economy was examined. It was concluded that 2008 global financial crisis affected Turkey's economy considerably at many points. For example, the ISE compound price index lost about 35% in one year, while foreign investments in the stock market declined rapidly. The foreign trade volume, together with the crisis, decreased by 27.2% and the economic growth decreased to 1.1% in 2008. Total industrial production decreased to -9.6% in the last quarter of 2018. Moreover, the unemployment rate increased to 14% in 2009. Thus, Turkey compared to other countries has had no major collapse in the financial markets. However, in terms of macroeconomic indicators, it has taken important wounds from the crisis.