Turkey, already an enviable economy in debt-ridden and stagnating Europe with its growing economy, seems to be polishing its public financial records by lowering the public debt level.
According to Central Bank governor Erdem Başçı, the ratio of Turkey’s public debt to its gross domestic product (GDP), which is currently below 40 percent, will fall further to 37 percent by the end of the year.
Compared to its counterparts on the world stage, Turkey is faring quite well in its efforts to lower its level of debt. In Europe, Greece has the highest debt-to-GDP ratio at 160 percent, according to the April 2012 World Economic Outlook Database by the International Monetary Fund. Many other European Union countries are faced with high levels of debt that could undermine economic recovery efforts. The ratio is currently at 120 percent for Italy, 106 percent for Portugal, 104 percent for Ireland and 68 percent for Spain.
Even Germany, the EU’s economic powerhouse, and France are riddled with high debt burdens at 81 percent 86 percent, respectively. The debt-to-GDP ratio for the United States is 102 percent, and 229 percent for Japan.
Despite concerns about Turkey’s current account deficit, Turkey has made progress on its reliance on external energy and is increasing both domestic production of solar energy and has increased exports by 20% while imports remained static.
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