The current account deficit, Turkey the effects of the economy

ABSTRACT VI Turkey's economy in the growing current account deficit, the economy is brought to become brittle. Who value local currency, imports increased more than exports and trade deficit growth raises the result. Due to problems in international markets abroad funding opportunities greatly narrowing and capital outflows to gain momentum in the coming period, the current account deficit could create difficulties for the financing are considered as factors. On the other hand, the possible decline in demand and their internal and external growth, depending on the relative slowdown in the process of narrowing the current account deficit into a natural and hence the reduction in external financing needs will lead to predictable.. Turkey between 2002-2005 in hot money inflows rise in funding demonstrates that the quality of leading universities. In contrast, the current account deficit financing structure, especially in the 2006-2008 period, direct investments and long-term loans increased their use. However, foreign direct investment is being evaluated as a type of the share of foreign investments, deficit financing of privatization has become questioned. Indeed, perceived as a continuous funding source of the customization could damage the economy. Change of ownership of existing production units not in the form of investments, formation of the new form of realization of more importance. In this context, the private sector savings declining current account deficit triggered the rise in energy prices and in the long run, increasing competitiveness for the solution, such as structural reform and promoting savings in the field of energy policy in the coming period will be of great importance. In order to minimize the negative impacts of the international financial crisis in countries particularly with high current account deficit, such as Turkey, sustaining fiscal discipline with determination comes to the fore. In this sense, the aim of the present study, Turkey's economy in particular in recent years, the increased current account deficit balance of payments with the help of a pen by examining as of the years indicated, in the light of experience in the development and the structural causes of the current account deficit to Turkey to investigate; the current account deficit and the current account deficit problem causes, the current account deficit problem in the world, with the current account deficit to the structural causes of economic effects, the current account deficit and the problem of financing the current account deficit financing crisis and the point is to analyze the policies.