What is 2001 Financial Crisis

The Turkish economy faced its worst financial crisis in 2001. The crisis started in the public sector and soon spread into the financial sector and finally led to major problems in the real estate sector. Following this crisis, which caused many banks to shut down and go into bankruptcy, many reforms took place. Thanks to these reforms, the Turkish economy has been growing steadily since 2003, except for the year 2008, despite conflicts in the neighboring states, and fluctuations in the global energy prices. Turkey owes this success to public and private sector reform and regulation and to its decisiveness in the implementation process. This chapter aims to provide a comprehensive overview of the economic reform process in Turkey since the 2001 financial crisis as well as reflections of this reform process on the Turkish economy.