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"Turkey managed to survive the recent downturn relatively well, which was due in part to the economic crisis in the country in 2001 that prompted the regulator to monitor banks closely, so that now they are required to give a daily report at 5pm. While this might seem a little Draconian it paid dividends by paving the way for a period of strong economic growth and offered protection during the recent crisis. The fact that its economy survived rather better than many European countries fuelled another worry which was “hot money" as many investors chose to pump money into the country.
While the money was certainly welcome it leaves the economy vulnerable should investors choose to withdraw their money. The central bank recognised this problem and has acted to prevent this from happening, and it has actively chosen to cut interest rates and has made its banks set aside more reserves with the hope of weakening the Turkish currency making it less attractive for investment. These measures might seem extraordinary but are good news for anyone wishing to invest in property as the lower exchange rate will make their money go further.
Turkey is still waiting to join the EU after five years of talks, and many experts believe this to be a mutually beneficial arrangement that should go ahead in spite of opposition from France and Germany. It would enable Turkey to be able to export goods to Europe more easily as at the moment they are not able to take full advantage of their close proximity. Turkey needs to export more to offset the fact that it needs to import so many goods including energy.
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