Murat Çetinkaya: Macroeconomic outlook and monetary policy in Turkey

Speech by Mr Murat Çetinkaya, Governor of the Central Bank of the Republic of Turkey, at J.P. Morgan Turkey Macro and Credit Conference, London, 9 February 2017.

Central bank speech  | 
28 April 2017

Dear Participants,

1. Macroeconomic Outlook

Turkish economy was hit by concurrent shocks in recent years. Geopolitical tensions, global shocks, security related issues and a failed coup attempt have created significant policy challenges. Despite the intensity and size of the shocks in recent years, the growth rate has been quite robust until recently, outpacing emerging market average by a large margin (Figure 1). The resilience of growth in recent years can be attributed to factors such as prudent macroprudential policies reducing the sensitivity of economic activity to capital flow volatility, dynamic domestic market, market flexibility of exports, and the fall in energy prices.