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According to economists Turkey has a serious current account deficit problem. I agree with this argument. First of all current account is balance of payments which is the sum of balance of trade (exports minus imports of services or goods), factor income and transfer payments. Current account deficit problem occurs when a country spends more money than it earns. Which means expenditures are higher or more than earnings of that country. Country can spend that money either for investments or for paying its loan. If you spend that money for investments you will earn money and pay your debt but if you spend for paying your loans you will have to get more debt from other countries.
Turkey has current account deficit problem because oil and energy is taken from other countries and private sector production can’t compete with foreign sector. This leads to huge gap between import and export. First of all country has to find ways to create its own energy or new sources. Secondly, government has to help or create efficient ways to help private sector to produce quality products and gain profit from those products and better conditions to compete with foreign sector products. When a country could have its worldwide brands or products that country’s export will be higher than its imports. This will automatically decreases the current account deficit because import and export will be more equal or balanced. Government can sell bond to foreign investors or domestic investors to decrease the current account deficit. Or Turkey could borrow money from IMF in reasonable conditions.
Turkey is not developed country so all the taxes collected are spending on services such as health, insurance, education. That’s why Turkey has to lend money from other countries or bank so Turkey’s debt is growing day by day and this leads current account deficit problem. Due to this welfare in country decreases and people has to live in worse condition.

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