For almost a decade the flow of funds from the global central bank has provided the funding for the development of Istanbul, increasing the cities in China and many more financial helps to the emerging markets. But today the scenario has changed many of the property and infrastructure are empty and countries like China and Istanbul are under immense debt to pay back the mounting debt, Argentina has already signed the bailout procedures at International Monetary Fund.
The finance support from the global central banks may have fueled the growth in the emerging market but now paying back with interest is a big problem to the market as returns are getting piled up and investors are looking for an early return. According to the statement form, the financial experts the situation in Turley which for the better part of the year has followed will follow the path of the meltdown witnessed by us during 1994 in Mexico and 1997 in Asia. The risk involved is very high and vulnerable said by the expert for the emerging market.
The situation for Turkey worsened after facing a diplomatic dispute with the United States, but coupled with heavy borrowing and fall in the value of the national currency has increased the risk factor to Turkey. Turkey is the prime example of the symptoms faced by the growing challenges in the emerging economy.
In a research done by the analyst, it is been noted that South Africa, Philippines, Hong Kong, Chile, and Mexico are the most vulnerable economies and now Turkey is also among them as these all nation has a significant amount of current account deficit and dollar level of debt. The analyst is predicting a wider emerging market crisis which could trigger a global financial crisis and have serious implications in the world.