Turkey’s current account has been in surplus for three consecutive months now, but the government’s efforts to speed up the recovery will probably cause the external position to deteriorate again soon. This will put downward pressure on the lira and force the central bank to reverse course on monetary easing around the middle of next year. Elsewhere, Hungary’s economic expansion continued at an impressive pace in Q3, underpinned by loose monetary and fiscal policy. A continuation of this policy mix would soften any slowdown in growth next year, but it would risk storing up bigger problems in the future.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services