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Western EuropeApril 3 2018

Is Turkey's economy at risk of overheating?

Amid rumours that Turkey’s president Recep Tayyip Erdogan may be bringing elections forward to mid-2018, observers fear a pumped-up ‘campaign economy’ will overheat. Tom Stevenson reports.
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Turkey’s economy has experienced a rapid return to growth over the past year, but the recovery has also brought high inflation and a deepening current account deficit as the government prepares for national elections slated for 2019.

Having suffered a disastrous period in 2015 and 2016, when an economic crisis coincided with a failed coup attempt and war, both in Turkey’s restive south-eastern provinces and across its borders in Syria and Iraq, Turkey’s economy experienced a remarkable rally in 2017.

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