Turkish current account concerns start to build

After shrinking markedly from the levels seen in mid-2008, Turkey’s current account deficit has begun to widen once again. While the deficit has not yet reached danger levels, the bigger picture is that in the absence of reforms to boost domestic saving, the economy will remain heavily dependent on foreign capital to finance growth and development. This is turn will ensure that it remains vulnerable to shifts in global risk appetite – a key blot on an otherwise bright outlook.