But the growth was built chiefly on a construction boom fed by cheap credit and an avalanche of government spending that Mr. Erdogan poured into the economy to stimulate even more activity. On the ground, the plunge in the lira has had an impact on daily life in a litany of ways, affecting even the availability of pharmaceutical supplies. “Hundreds of thousands of people will be affected,” Mr. Bulut said. As the Federal Reserve has begun increasing interest rates in the United States and as the European Central Bank looks to withdraw monetary stimulus of its own, investors have become less tolerant of the risks present in many smaller developing countries, and have begun pulling their cash. That exposes the region to risks emanating from Turkey, even as the European Union grapples with its own challenges, including a trade dispute with the United States and concerns over slowing economic growth.

Source: New York Times September 13, 2018 12:32 UTC