The boom that turned Turkey into Europe’s fastest-growing economy may be imperiled by the debt crisis in neighboring Greece, the continent’s worst performer, Bloomberg reported. Prime Minister Recep Tayyip Erdogan hailed Turkey’s 11 percent first-quarter expansion as “magnificent” on June 30. It hasn’t prevented the lira from sliding to a two-year low, as the country’s trade deficit widens on surging demand for imports. Turkey needs increasing flows of cash to finance the gap -- just as investors take alarm at the risk of default in Greece, where output shrank 5.5 percent.
Read more