TEPAV Economic Policy Analyst Ozan Acar evaluated the current outlook of Turkey's sovereign rating in the context of the developments witnessed since January 2011.

Acar assessed:

Due to the uncertainties arising as a result of the global crisis, fund managers tend to focus on short-term rather than long-term factors when making investment decisions. The relative improvement in and the stable outlook of Turkey's sovereign rating in such a climate appears to be the main factor driving the rise in foreign fund inflows. Nevertheless, this trend stemmed from the global crisis and it is still a huge question to what extent this favorable trend is sustainable. In order for Turkey to ease its vulnerabilities driven by the high current account deficit, the share of long-term fund inflows including foreign direct investments in overall sources finance needs to be improved. The way to achieve this is to solve the country's structural problems.

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