Report by the WTO Secretariat

Like so many other countries across the world, Turkey felt the impact of the global financial crisis in 2008 and 2009, with a precipitous decline in exports accompanied by a loss of domestic demand. However, Turkey was able to capitalize on structural reforms undertaken in the aftermath of severe domestic economic crises in 1999 and 2001. The reforms included market liberalization to promote private sector growth, privatization, agricultural reform, banking system strengthening, fiscal discipline, tight monetary policy with inflation targeting, and a floating exchange rate regime. Thus, in responding to the recent crisis, a robust banking sector and a good fiscal position allowed the Government to provide fiscal stimulus to restore growth. The economic decline proved short-lived and the subsequent rebound has been strong.