"Since the global financial crisis of 2008-2009, interest rates in advanced economies have been at historical lows. International investors increasingly turned to emerging markets to seek higher rates of return on their investments. Turkey was an attractive destination due to economic reforms in the early 2000s, vibrant growth (6.9% annually on average between 2010 and 2017, compared to 3.8% globally), and its large domestic market (it has a population of about 80 million people). Turkish banks and large firms borrowed heavily from foreign investors, typically in U.S. dollars. Easy access to foreign financing supported Turkey's large annual current account deficits (a broad measure of the trade balance), averaging 5.5% of GDP per year between 2010 and 2017 and among the largest in the world."
CRS In Focus, IF10957