The impact on economic growth of the current account deficit in Turkey (2006-2016)

Turkey's account deficit is not only connected to its economy, but one of the most important factors causing economic crises. Indicators that cause the current account deficit in Turkey include economic growth, savings and investments, the dependence on foreign energy sources, the trade deficit, exchange rates, the budget deficit, external debts, the unemployment rate and the overvaluation of the Turkish Lira. Due to their influence on a country's economy, account deficits and economic growth are among the most discussed issues in a country. In the present study, macroeconomic indicators that worsen the economic equilibrium are determined in order to reduce their impact on the economy. The study aims at presenting the changes in the current account deficit and economic growth in Turkey between 2006 and 2016 and illustrates their interdependency. At the same time, approaches to decrease the factors that cause Turkey's account deficit are presented and discussed. For this purpose, charts representing annual data taken from sources like TUIK, the Central Bank and the Ministry of Treasury and Finance have been used. Keywords: Account Deficit, Economic Growth, Trade Deficit, Exchange Rates, Budget Deficits