The impacts of the 2008 global financial crisis on the finances of developing countries and the example of Turkish public finance

The housing policy that started in the USA in 2007 caused the financial crisis and caused the balances in the world to change. Banking systems collapsed and the importance given to economic policies increased. Although improvements were experienced in some periods, permanent improvement could not be achieved. The removal of borders as a result of globalization has affected the whole world. Capitalism played a role in the wide impact of the 2008 global financial crisis. The crisis that emerged in the USA in 2007 could not affect Turkey as much as the USA. The most important reason for this situation is that many of the features of the US economy are not available in Turkey. In addition, the devastating impact of the 2008 global financial crisis on the banking system was not as high on the Turkish banking system compared to its impact on the US banking system, due to the measures taken in Turkey during the 2001 crisis. Another effect of the 2008 financial crisis in Turkey is the current account deficit. Although the decrease in imports reduces the deficit, the real problem is the insufficiency and imbalance of demand. This situation has hindered exports and outsourcing. The production rate decreased and unemployment increased. As a result, GDP decreased. The aim of this study is to analyze the 2008 global financial crisis, examine Turkish public finance, contribute to the literature on its financial impact on other developing countries, and show that the 2008 global financial crisis was more intense than other crises.