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Rough Seas Ahead for the Turkish Economy

Nov 1, 2016 | 09:00 GMT
A ferry steams past the Hagia Sofia, a major tourist attraction in Istanbul. Tourism, a prime source of foreign currency in Turkey, has suffered as the result of terrorist attacks this year.
A ferry steams past the Hagia Sofia, a major tourist attraction in Istanbul. Tourism, a prime source of foreign currency in Turkey, has suffered as the result of terrorist attacks this year.
(CHRIS MCGRATH/Getty Images)

The origins of Turkey's economic fragility stem from a period of rapid growth in the 2000s. Unlike other high-growth countries such as China, which focused its economy on manufacturing and exporting products to the global market, Turkey's boom was largely based on domestic consumption and investment. That type of growth is sustainable as long as foreign investors believe they can achieve a better return for their money in Turkey than somewhere else; when they lose faith, the ensuing loss of liquidity can cause sizable problems....

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