Turkey: Improved short-term economic risk undermined by social unrest

After a soft landing in 2012, growth will pick up in 2013

Insolvencies will continue to rise. Unorthodox monetary policy appears to be eventually successful. Inflation is forecast to remain moderate. Exchange rate risk remains a concern.

Current account deficit is narrowing but the financing of the deficit remains a cause of concern. Rapidly rising short-term external debt poses risks

and requires close monitoring. Foreign exchange reserves appear adequate.