Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report
Domestic savings in Turkey declined significantly in the 2000s. The domestic savings rate declined from an average of 23.5 percent of gross national income in the 1990s to an average of 17 percent over the 2000-2008 period, and further to 12.7 perc...
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| Format: | Country Economic Memorandum |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2011/12/17011874/turkey-country-economic-memorandum-cem-sustaining-high-growth-role-domestic-savings-synthesis-report http://hdl.handle.net/10986/12264 |
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okr-10986-12264 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO FINANCE ACCOUNTING ADDITIONAL INCOME ADDITIONAL SAVINGS AMOUNT OF SAVING AMOUNT OF SAVINGS AVAILABILITY OF CREDIT AVERAGE GROWTH BALANCE SHEET BALANCE SHEETS BANK DEPOSIT BANK DEPOSITS BANK LOANS BANKING SYSTEM BANKS BENEFICIARIES BEQUEST BOND BOND MARKET BOND MARKETS BONDS BORROWING BUSINESS CLIMATE CALCULATIONS CAPITAL ACCUMULATION CAPITAL EXPENDITURE CAPITAL FLOWS CAPITAL FORMATION CAPITAL GROWTH CAPITAL MARKET CAPITAL MARKETS CASH FLOWS CONSUMER LOANS CONTINGENCIES CONTRIBUTION CONTRIBUTIONS CORPORATE BOND CORPORATE BONDS CORPORATE FINANCE CREDIT CARD CREDIT CARDS CREDIT CONSTRAINED FIRMS CREDIT FLOWS CREDIT LIMIT CURRENCY CURRENT ACCOUNT CURRENT EXPENDITURES CURRENT RATE DEPOSIT DEPOSITS DEPRECIATION DEPRECIATIONS DEVELOPING FINANCIAL MARKETS DISPOSABLE INCOME DISPOSABLE INCOMES DIVERSIFICATION DOMESTIC CURRENCY DURABLE GOODS EARNINGS ECONOMIC COOPERATION ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC MANAGEMENT ECONOMIC POLICIES EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYEE SAVINGS EMPLOYER EMPLOYERS ENTREPRENEURS EXCHANGE RATE EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FAMILIES FAVORABLE TERMS FINANCIAL ASSETS FINANCIAL DEVELOPMENT FINANCIAL EDUCATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LITERACY FINANCIAL LITERACY STRATEGY FINANCIAL LITERACY SURVEY FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICY FIXED CAPITAL FOREIGN CURRENCY FORM OF SAVING GENERAL PUBLIC GOVERNMENT SECURITIES HOUSEHOLD INCOME HOUSEHOLD SAVING HOUSEHOLD SAVINGS HUMAN CAPITAL INCOME INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME LEVELS INCOME TAXES INCOMES INCREASE IN INCOME INDIVIDUAL RETIREMENT INDIVIDUAL RETIREMENT ACCOUNT INFLATION INFORMAL ECONOMY INFORMED FINANCIAL DECISIONS INITIAL PUBLIC OFFERING INSTALLMENT INSURANCE INTEREST COSTS INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNAL FINANCE INVESTING INVESTMENT CLIMATE INVESTMENT CORPORATION INVESTMENT OPPORTUNITIES IRA LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LARGE FIRMS LEVEL OF EDUCATION LIFETIME LIVING STANDARDS LOCAL CURRENCY LONG-TERM SAVING LONG-TERM SAVINGS LOW INCOME LOW-INCOME LOW-INCOME GROUP LOWER INTEREST RATES LUMP SUM MACROECONOMIC STABILITY MARKET ECONOMY MEDIUM ENTERPRISES MINIMUM PAYMENT MINIMUM WAGE MODERATE INCOME MODERATE-INCOME MODERATE-INCOME HOUSEHOLDS MODERATE-INCOME INDIVIDUALS MONETARY POLICY MORTGAGE MORTGAGE LOANS MUTUAL FUND MUTUAL FUNDS NET WORTH OPERATING COSTS PENSION PENSION FUNDS PENSION MEMBERS PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PERSONAL FINANCE PHYSICAL ASSETS PHYSICAL CAPITAL PRECAUTIONARY SAVING PRECAUTIONARY SAVINGS PRIMARY EDUCATION PRIVATE PENSION PRIVATE PENSIONS PRIVATE SAVING PRIVATE SAVINGS PRIVATIZATION PRODUCTIVITY PROFIT MARGIN PROFIT MARGINS PROFITABILITY PUBLIC DEBT PUBLIC EXPENDITURES PUBLIC FINANCES PUBLIC INVESTMENT PURCHASES RAPID DEVELOPMENTS REGRESSION ANALYSIS RETIREMENT BENEFITS REVOLVING FUNDS RISK PERCEPTIONS RISK PREMIUM SALARY SALES SAVERS SAVING BEHAVIOR SAVINGS SAVINGS ACCOUNTS SAVINGS RATE SAVINGS RATES SECONDARY EDUCATION SECURITIES SEVERANCE PAY SOCIAL SECURITY SPECIAL SAVING STAKEHOLDERS STOCK EXCHANGE STOCKS SURVEY OF CONSUMER SURVEY OF CONSUMER FINANCES TAX BURDEN TAX EXEMPTION TAX INCENTIVES TAX RATE TAX RATES TAX-EXEMPT TERMINATION TOTAL SAVING UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNION UNSTABLE INCOME VALUABLE VOLATILE INCOME WAGE WITHDRAWAL WORK FORCE WORKING AGE WORKING AGE POPULATION |
| spellingShingle |
ACCESS TO FINANCE ACCOUNTING ADDITIONAL INCOME ADDITIONAL SAVINGS AMOUNT OF SAVING AMOUNT OF SAVINGS AVAILABILITY OF CREDIT AVERAGE GROWTH BALANCE SHEET BALANCE SHEETS BANK DEPOSIT BANK DEPOSITS BANK LOANS BANKING SYSTEM BANKS BENEFICIARIES BEQUEST BOND BOND MARKET BOND MARKETS BONDS BORROWING BUSINESS CLIMATE CALCULATIONS CAPITAL ACCUMULATION CAPITAL EXPENDITURE CAPITAL FLOWS CAPITAL FORMATION CAPITAL GROWTH CAPITAL MARKET CAPITAL MARKETS CASH FLOWS CONSUMER LOANS CONTINGENCIES CONTRIBUTION CONTRIBUTIONS CORPORATE BOND CORPORATE BONDS CORPORATE FINANCE CREDIT CARD CREDIT CARDS CREDIT CONSTRAINED FIRMS CREDIT FLOWS CREDIT LIMIT CURRENCY CURRENT ACCOUNT CURRENT EXPENDITURES CURRENT RATE DEPOSIT DEPOSITS DEPRECIATION DEPRECIATIONS DEVELOPING FINANCIAL MARKETS DISPOSABLE INCOME DISPOSABLE INCOMES DIVERSIFICATION DOMESTIC CURRENCY DURABLE GOODS EARNINGS ECONOMIC COOPERATION ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC MANAGEMENT ECONOMIC POLICIES EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYEE SAVINGS EMPLOYER EMPLOYERS ENTREPRENEURS EXCHANGE RATE EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FAMILIES FAVORABLE TERMS FINANCIAL ASSETS FINANCIAL DEVELOPMENT FINANCIAL EDUCATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LITERACY FINANCIAL LITERACY STRATEGY FINANCIAL LITERACY SURVEY FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICY FIXED CAPITAL FOREIGN CURRENCY FORM OF SAVING GENERAL PUBLIC GOVERNMENT SECURITIES HOUSEHOLD INCOME HOUSEHOLD SAVING HOUSEHOLD SAVINGS HUMAN CAPITAL INCOME INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME LEVELS INCOME TAXES INCOMES INCREASE IN INCOME INDIVIDUAL RETIREMENT INDIVIDUAL RETIREMENT ACCOUNT INFLATION INFORMAL ECONOMY INFORMED FINANCIAL DECISIONS INITIAL PUBLIC OFFERING INSTALLMENT INSURANCE INTEREST COSTS INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNAL FINANCE INVESTING INVESTMENT CLIMATE INVESTMENT CORPORATION INVESTMENT OPPORTUNITIES IRA LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LARGE FIRMS LEVEL OF EDUCATION LIFETIME LIVING STANDARDS LOCAL CURRENCY LONG-TERM SAVING LONG-TERM SAVINGS LOW INCOME LOW-INCOME LOW-INCOME GROUP LOWER INTEREST RATES LUMP SUM MACROECONOMIC STABILITY MARKET ECONOMY MEDIUM ENTERPRISES MINIMUM PAYMENT MINIMUM WAGE MODERATE INCOME MODERATE-INCOME MODERATE-INCOME HOUSEHOLDS MODERATE-INCOME INDIVIDUALS MONETARY POLICY MORTGAGE MORTGAGE LOANS MUTUAL FUND MUTUAL FUNDS NET WORTH OPERATING COSTS PENSION PENSION FUNDS PENSION MEMBERS PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PERSONAL FINANCE PHYSICAL ASSETS PHYSICAL CAPITAL PRECAUTIONARY SAVING PRECAUTIONARY SAVINGS PRIMARY EDUCATION PRIVATE PENSION PRIVATE PENSIONS PRIVATE SAVING PRIVATE SAVINGS PRIVATIZATION PRODUCTIVITY PROFIT MARGIN PROFIT MARGINS PROFITABILITY PUBLIC DEBT PUBLIC EXPENDITURES PUBLIC FINANCES PUBLIC INVESTMENT PURCHASES RAPID DEVELOPMENTS REGRESSION ANALYSIS RETIREMENT BENEFITS REVOLVING FUNDS RISK PERCEPTIONS RISK PREMIUM SALARY SALES SAVERS SAVING BEHAVIOR SAVINGS SAVINGS ACCOUNTS SAVINGS RATE SAVINGS RATES SECONDARY EDUCATION SECURITIES SEVERANCE PAY SOCIAL SECURITY SPECIAL SAVING STAKEHOLDERS STOCK EXCHANGE STOCKS SURVEY OF CONSUMER SURVEY OF CONSUMER FINANCES TAX BURDEN TAX EXEMPTION TAX INCENTIVES TAX RATE TAX RATES TAX-EXEMPT TERMINATION TOTAL SAVING UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNION UNSTABLE INCOME VALUABLE VOLATILE INCOME WAGE WITHDRAWAL WORK FORCE WORKING AGE WORKING AGE POPULATION World Bank Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report |
| geographic_facet |
Europe and Central Asia Turkey |
| description |
Domestic savings in Turkey declined
significantly in the 2000s. The domestic savings rate
declined from an average of 23.5 percent of gross national
income in the 1990s to an average of 17 percent over the
2000-2008 period, and further to 12.7 percent in 2010. This
decline was driven by the sharp fall in private saving,
while public saving increased through most of the period. A
strong fiscal adjustment underpinned the improvement in
public savings in the post-2001 period. The adjustment was
pursued to correct the fiscal expansion of the previous
decade, and it led to a sharp reduction in the public debt
to gross domestic product (GDP) ratio. This improved the
public saving-investment balance and helped reduce the
vulnerability of the economy to external shocks. With an
expected increase in future investment needs, continued
fiscal discipline will be vital for sustainable growth. The
fall in private savings after 2001 was mostly a result of
the decline in macroeconomic vulnerabilities. While the
economy was growing fast, the positive impact of income
growth on savings was overridden by an acceleration of
private consumption stimulated by the increased availability
of credit, fall in interest rates and previously postponed
consumption. As the economy normalized and interest rates
and inflation declined, so did household precautionary
motives for saving. Eventually, however, continued economic
stability and implementation of reforms discussed below
should encourage saving by raising incomes. Structurally,
Turkish households have a strong precautionary motive for
savings. Macroeconomic vulnerabilities and the resulting
unstable income streams, the risk of unemployment, and
health risks are obvious reasons for household decisions to
save. Declining interest rates (as in the 2000s) that
reflected reduced risk premium and hence vulnerability
reduced precautionary savings motives. Households where the
head is an employer or self-employed rather than a wage
earner tend to save more, while households where there is a
green card holder (a non-contributory health program) save
less, controlling for the income effect. |
| format |
Economic & Sector Work :: Country Economic Memorandum |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report |
| title_short |
Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report |
| title_full |
Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report |
| title_fullStr |
Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report |
| title_full_unstemmed |
Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report |
| title_sort |
turkey - country economic memorandum (cem) : sustaining high growth - the role of domestic savings : synthesis report |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2011/12/17011874/turkey-country-economic-memorandum-cem-sustaining-high-growth-role-domestic-savings-synthesis-report http://hdl.handle.net/10986/12264 |
| _version_ |
1764419331762946048 |
| spelling |
okr-10986-122642021-04-23T14:03:00Z Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report World Bank ACCESS TO FINANCE ACCOUNTING ADDITIONAL INCOME ADDITIONAL SAVINGS AMOUNT OF SAVING AMOUNT OF SAVINGS AVAILABILITY OF CREDIT AVERAGE GROWTH BALANCE SHEET BALANCE SHEETS BANK DEPOSIT BANK DEPOSITS BANK LOANS BANKING SYSTEM BANKS BENEFICIARIES BEQUEST BOND BOND MARKET BOND MARKETS BONDS BORROWING BUSINESS CLIMATE CALCULATIONS CAPITAL ACCUMULATION CAPITAL EXPENDITURE CAPITAL FLOWS CAPITAL FORMATION CAPITAL GROWTH CAPITAL MARKET CAPITAL MARKETS CASH FLOWS CONSUMER LOANS CONTINGENCIES CONTRIBUTION CONTRIBUTIONS CORPORATE BOND CORPORATE BONDS CORPORATE FINANCE CREDIT CARD CREDIT CARDS CREDIT CONSTRAINED FIRMS CREDIT FLOWS CREDIT LIMIT CURRENCY CURRENT ACCOUNT CURRENT EXPENDITURES CURRENT RATE DEPOSIT DEPOSITS DEPRECIATION DEPRECIATIONS DEVELOPING FINANCIAL MARKETS DISPOSABLE INCOME DISPOSABLE INCOMES DIVERSIFICATION DOMESTIC CURRENCY DURABLE GOODS EARNINGS ECONOMIC COOPERATION ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC MANAGEMENT ECONOMIC POLICIES EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYEE SAVINGS EMPLOYER EMPLOYERS ENTREPRENEURS EXCHANGE RATE EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL SHOCKS FAMILIES FAVORABLE TERMS FINANCIAL ASSETS FINANCIAL DEVELOPMENT FINANCIAL EDUCATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LITERACY FINANCIAL LITERACY STRATEGY FINANCIAL LITERACY SURVEY FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICY FIXED CAPITAL FOREIGN CURRENCY FORM OF SAVING GENERAL PUBLIC GOVERNMENT SECURITIES HOUSEHOLD INCOME HOUSEHOLD SAVING HOUSEHOLD SAVINGS HUMAN CAPITAL INCOME INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME LEVELS INCOME TAXES INCOMES INCREASE IN INCOME INDIVIDUAL RETIREMENT INDIVIDUAL RETIREMENT ACCOUNT INFLATION INFORMAL ECONOMY INFORMED FINANCIAL DECISIONS INITIAL PUBLIC OFFERING INSTALLMENT INSURANCE INTEREST COSTS INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNAL FINANCE INVESTING INVESTMENT CLIMATE INVESTMENT CORPORATION INVESTMENT OPPORTUNITIES IRA LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LARGE FIRMS LEVEL OF EDUCATION LIFETIME LIVING STANDARDS LOCAL CURRENCY LONG-TERM SAVING LONG-TERM SAVINGS LOW INCOME LOW-INCOME LOW-INCOME GROUP LOWER INTEREST RATES LUMP SUM MACROECONOMIC STABILITY MARKET ECONOMY MEDIUM ENTERPRISES MINIMUM PAYMENT MINIMUM WAGE MODERATE INCOME MODERATE-INCOME MODERATE-INCOME HOUSEHOLDS MODERATE-INCOME INDIVIDUALS MONETARY POLICY MORTGAGE MORTGAGE LOANS MUTUAL FUND MUTUAL FUNDS NET WORTH OPERATING COSTS PENSION PENSION FUNDS PENSION MEMBERS PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PERSONAL FINANCE PHYSICAL ASSETS PHYSICAL CAPITAL PRECAUTIONARY SAVING PRECAUTIONARY SAVINGS PRIMARY EDUCATION PRIVATE PENSION PRIVATE PENSIONS PRIVATE SAVING PRIVATE SAVINGS PRIVATIZATION PRODUCTIVITY PROFIT MARGIN PROFIT MARGINS PROFITABILITY PUBLIC DEBT PUBLIC EXPENDITURES PUBLIC FINANCES PUBLIC INVESTMENT PURCHASES RAPID DEVELOPMENTS REGRESSION ANALYSIS RETIREMENT BENEFITS REVOLVING FUNDS RISK PERCEPTIONS RISK PREMIUM SALARY SALES SAVERS SAVING BEHAVIOR SAVINGS SAVINGS ACCOUNTS SAVINGS RATE SAVINGS RATES SECONDARY EDUCATION SECURITIES SEVERANCE PAY SOCIAL SECURITY SPECIAL SAVING STAKEHOLDERS STOCK EXCHANGE STOCKS SURVEY OF CONSUMER SURVEY OF CONSUMER FINANCES TAX BURDEN TAX EXEMPTION TAX INCENTIVES TAX RATE TAX RATES TAX-EXEMPT TERMINATION TOTAL SAVING UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNION UNSTABLE INCOME VALUABLE VOLATILE INCOME WAGE WITHDRAWAL WORK FORCE WORKING AGE WORKING AGE POPULATION Domestic savings in Turkey declined significantly in the 2000s. The domestic savings rate declined from an average of 23.5 percent of gross national income in the 1990s to an average of 17 percent over the 2000-2008 period, and further to 12.7 percent in 2010. This decline was driven by the sharp fall in private saving, while public saving increased through most of the period. A strong fiscal adjustment underpinned the improvement in public savings in the post-2001 period. The adjustment was pursued to correct the fiscal expansion of the previous decade, and it led to a sharp reduction in the public debt to gross domestic product (GDP) ratio. This improved the public saving-investment balance and helped reduce the vulnerability of the economy to external shocks. With an expected increase in future investment needs, continued fiscal discipline will be vital for sustainable growth. The fall in private savings after 2001 was mostly a result of the decline in macroeconomic vulnerabilities. While the economy was growing fast, the positive impact of income growth on savings was overridden by an acceleration of private consumption stimulated by the increased availability of credit, fall in interest rates and previously postponed consumption. As the economy normalized and interest rates and inflation declined, so did household precautionary motives for saving. Eventually, however, continued economic stability and implementation of reforms discussed below should encourage saving by raising incomes. Structurally, Turkish households have a strong precautionary motive for savings. Macroeconomic vulnerabilities and the resulting unstable income streams, the risk of unemployment, and health risks are obvious reasons for household decisions to save. Declining interest rates (as in the 2000s) that reflected reduced risk premium and hence vulnerability reduced precautionary savings motives. Households where the head is an employer or self-employed rather than a wage earner tend to save more, while households where there is a green card holder (a non-contributory health program) save less, controlling for the income effect. 2013-02-06T22:45:47Z 2013-02-06T22:45:47Z 2011-12 http://documents.worldbank.org/curated/en/2011/12/17011874/turkey-country-economic-memorandum-cem-sustaining-high-growth-role-domestic-savings-synthesis-report http://hdl.handle.net/10986/12264 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Country Economic Memorandum Economic & Sector Work Europe and Central Asia Turkey |