# Turkish economy after 2013

1. Why did the Turkish economy plunge after 2013?
2. Why didn't it recover ever since?
• It wasn't the Turkish economy that "plunged", it was the Turkish lira. The figures you see are obtained by converting the nominal GDP in local currency to USD in market exchange rates. – Ege Erdil Oct 1 '17 at 9:39
• @Starfall, what is the difference though? – user13954 Oct 1 '17 at 9:42
• What's the difference between a country's currency and its GDP? Or are you asking why market exchange rates aren't determined by relative purchasing power parity alone? – Ege Erdil Oct 1 '17 at 9:44
• @Starfall, if the end result is the same, i.e. reduction of GDP in the unit of USD, what is the difference? – user13954 Oct 1 '17 at 9:47
• There's a huge difference; a country can devalue its currency like Argentina in 2001 and Egypt in 2016, for example, and experience a sharp fall in the nominal value in foreign currency of what they produce. Look at Argentina's GDP in dollars during the Argentine depression, and tell me if you think that Argentina's economy shrank by %60 in one year. – Ege Erdil Oct 1 '17 at 9:52

$$\textrm{Current account} + \textrm{Capital account} = 0$$