ECONOMICS - Fitch warns Turkey of distant perfect storm:
"Turkey now appears to be distant from any balance of payments crisis and the Turkish economy is not in the middle of a perfect storm but has fairly been close, warned Senior Director of Fitch Ratings Paul Rawkins yesterday, during a meeting of the credit agency.
“Turkey’s current account deficit is so high that it cannot be financed by short-term loans. This makes the Turkish economy quite vulnerable to external shocks,” he said, noting that the country was disproportionally negatively affected by the Fed’s expected gradual decision to taper.
“Any sudden stop in capital inflow to the economy will threaten the growth seriously and in such a scenario Turkey may face a serious recession. The biggest risk for Turkey is the possibility of a sudden stop in line with its high levels of current account deficit,” he said."
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